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Echelon Corporation Enters into Strategic Partnership with Allied Digital

Alliance to Provide ‘Cost Saving' Open Networking Technology and Energy Solutions to the Real Estate Sector in India

(San Jose, CA - March 12, 2007) - Echelon Corporation (NASDAQ: ELON) today announced a strategic alliance with leading systems integrator and IT infrastructure management services provider Allied Digital Services Limited to provide open networking technology to the real estate market in India. Echelon's LonWorks® technology provides networking of everyday devices like pumps, thermostats and lights allowing products from a multitude of manufacturers to be integrated into a single open system.

Echelon's technology provides energy savings, reduced operating and maintenance costs, increased safety, and enhanced comfort. LonWorks systems are operating in thousands of buildings in other parts of the world with over 60 million devices installed.

Mr. Kenneth Oshman, Echelon's chairman and CEO said, "As global players in networking technology, we were closely looking at India as a potential market for our services. With Allied Digital, we have found a right partner to represent our services and technological offerings in this market. We hope to bring about a significant contribution to the booming real estate sector in India through our advanced products that have been developed after much research."

Millions of people have experienced LonWorks open systems that are used to create control applications making lives more comfortable, convenient and safe.

Commenting on this strategic alliance, Mr. Nitin Shah, Allied Digital's chairman and managing director said, "We look forward to this partnership with a global player like Echelon. We are convinced that their hi-tech solutions will benefit the real estate sector here in India. At a time when developers are looking at towers over 40 to 50 floors and luxury hi-end developments, Echelon's technology will add value and bring about huge cost benefits to developers and builders. With the scarcity and cost of energy resources in India, this was the perfect time for us to bring this modern technology to India."

Allied Digital is a premier system integrator that has experience in data, security and access control networks and is looking forward to the opportunity to integrate all of these systems into a single network enabling monitoring and control over the Internet. Today, companies are using this open Internet monitoring of devices to not only control their environments but also to save energy.

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 international 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 trademarks of Echelon Corporation in the U.S. 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, if any, for Echelon's products and services; the ability of Echelon products to perform as designed; 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
+1 (408) 938-5357
julia@echelon.com

Nick Olsson
Atomic Public Relations
+1 (415) 402-0230
nick@atomicpr.com

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