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Echelon Control Technology Selected to Monitor Safety on Next Generation Chinese Trains

LonWorks® Networking Platform Clear Choice to Provide Safety Control Infrastructure for Country's Primary Transportation Method

(San Jose, CA - March 9, 2006) - Echelon Corporation (NASDAQ: ELON), a global networking company providing technology and solutions for controls, smart metering, and energy and environment management, announced today that the China Academy of Rail Sciences and Sifang Rolling Stock Research Institute have standardized on Echelon's LonWorks® networking platform for safety monitoring on next generation passenger trains – effectively making it a de facto standard for high speed rail travel in the world's largest passenger rail transport market. Echelon's LonWorks networking platform will monitor safety features on passenger trains including brakes, doors and power supply. Since 2002, China's Ministry of Railways has recommended Echelon's LonWorks platform as one of the approved control network standards for passenger trains.

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"It is a top priority to improve the safety and efficiency of public transportation systems in China," said Ms. Xiuwei Guo, senior engineer of research and development for the Sifang Rolling Stock Research Institute. "Echelon's proven LonWorks technology provides us with a reliable and flexible platform that is cost-effective and allows Chinese original equipment manufacturers (OEMs) to modify and expand on their core development. This will help drive the quick adoption of LonWorks technology."

As the Chinese economy continues to open, fast, efficient, and safe travel between the country's largest cities has been identified as a bottleneck for economic growth. China's Ministry of Rail has mandated a speed increase on all next generation trains, from 120 km/h to 160 km/h and higher. This increase will improve the productivity and efficiency of the Chinese rail system, which remains the country's primary transportation method; however, with the increase in speed comes the need for improved safety monitoring.

With its open architecture and standards-based protocol, IEEE 1437L, Echelon's LonWorks platform provides a seamless communications infrastructure between all the vehicle networks, consolidating all monitoring functions including braking, speed sensors, doors, HVAC, and speed limitations. This in turn helps to make train travel more reliable, safer, and easier to maintain and operate. Both China Academy of Rail Sciences and Sifang Rolling Stock Research Institute have installed a LonWorks based safety monitoring solution in over 1,000 train cars and China is building on average 1,000 new cars per year.

"We are very pleased that a LonWorks based-solution has been chosen for China's next generation passenger trains," said Anders Axelsson, Echelon's senior vice president of sales and marketing. "Echelon has long provided control systems for many of the world's largest passenger rail mass transit systems, and we look forward to the China's Ministry of Rail utilizing our technology to manage its new high-speed trains and facilitate future expansion."

The underlying protocol of the LonWorks platform, also known as IEEE 1473L, is in use today in New York City subway cars, Helsinki Light Rail, and other transit systems, and is the required communications platform for the Chicago Transit Authority's next generation subway cars. The American Association of Railroads utilizes the protocol and a related power line signaling technology in its electro-pneumatic braking system standard. Additionally, the LonWorks networking platform is used extensively in train stations, way stations, and for remote monitoring and control of track switching mechanisms in harsh environments.

About China Academy of Railway Sciences
Founded in 1950, China Academy of Railway Science is a division of the Chinese Ministry of Railway, and is engaged in a full range of rail and transportation related research and development, production, sales and marketing. China Academy of Railway Science also acts as a think tank for transportation policy and helps set the technology standard for the Chinese railway industry. China Academy of Railway Science is based in Beijing, China.

Further information regarding China Academy of Railway Science can be found at http://www.rail.com.cn

About Sifang Rolling Stock Research Institute
Sifang Rolling Stock Research Institute is a division of China Northern Locomotive and Rolling Stock Industrial Group, one of the two largest rail car manufacturers in China. Sifang is a major research institute and OEM for China's railway industry and is based in Qingdao, China.

Further information regarding Sifang can be found at http://www.srsri.com.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is a pioneer and world leader in control networking — networks that connect machines and other electronic devices — for the purpose of sensing, monitoring and controlling the world around us. Echelon's LonWorks platform for control networking was released in 1990 and has become a worldwide standard in the building, industrial, transportation, and home automation markets. Launched in 2003, Echelon's Networked Energy Services system is an open, extensible, advanced metering infrastructure that can bring benefits to every aspect of a utility's operation, from metering and customer services to distribution operations and value-added business. In 2005 Echelon released the world's first embedded control network infrastructure, the Pyxos™ platform, extending the benefits of networking inside machines to the sensors and actuators that make them function.

Echelon is based in San Jose, California, with offices in China, France, Germany, Italy, Hong Kong, Japan, Korea, The Netherlands, and the United Kingdom. Further information regarding Echelon can be found at http://www.echelon.com.

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Echelon, LonWorks, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Pyxos is a trademark of Echelon Corporation in the United States and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

This press release may contain statements relating to future plans, events or performance. Such statements may involve risks and uncertainties, including risks associated with uncertainties pertaining to the timing and level of customer orders and demand for Echelon products and services in rail transportation and other applications in China and elsewhere; risks that liability may accrue as Echelon products and services are used in these rail transportation applications; risks associated with the any changes that may occur in China regarding rail transportation, safety or other policies, and acceptance by local, regional and national Chinese government agencies of LonWorks based solutions; the growth of the LonWorks industry; and other risks identified in Echelon's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Echelon undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

Press Contact:

 

Julia O'Shaughnessy
Echelon Corporation
(408) 938-5357
joshaughnessy@echelon.com

Mike Barash
Atomic Public Relations
(415) 402-0230
mike@atomicpr.com

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