Echelon Teams With EnerNOC to Help Prevent Electricity Blackouts and Make Buildings Greener and Smarteri.LON® Enhances Automated Demand Response to Reduce Energy Use at Peak Times(San Jose, CA - July 31, 2007) - Echelon Corporation (NASDAQ: ELON), a leading provider of networking technology that is used to manage and reduce energy consumption, today announced that EnerNOC, Inc. is using Echelon's technology as part of its solution to help business customers manage energy use and control energy costs during times of peak electricity demand. EnerNOC is a leading developer and provider of clean and intelligent power solutions to commercial, institutional, and industrial customers, as well as electric power grid operators and utilities. Significant imbalances between electricity supply and demand can destabilize the grid or cause severe voltage fluctuations and failures. Demand response, the reduction of electric demand from the grid, can relieve system stress and help prevent blackouts and brownouts. Demand response played an active role in managing energy events in various parts of the United States during the summer of 2006. Aggregating demand response efforts across a region has historically been a time-consuming and labor-intensive process. EnerNOC uses its Network Operations Center (NOC), in Boston, MA to remotely manage electricity consumption across a network of end-use customer sites and make energy available to grid operators and utilities on demand. Echelon's i.LON® Internet Server, when installed at commercial, institutional, and industrial customer sites, can enhance EnerNOC's technology by enabling a direct wireless connection from the NOC to building and energy management systems. This combination of EnerNOC's and Echelon's technologies provides real-time access to key energy management data, including schedules and temperature set points. When regional grid operators or utilities anticipate blackouts or brownouts because of high peak demand, EnerNOC can automatically notify participating customers of the situation, called a demand response event, and initiate curtailment measures at customer sites from its NOC. In return for participation in demand response programs, customers receive cash payments for standing by as demand response resources should the grid require them to conserve energy or transfer to backup generation. The demand response event notification also allows customers to take protective measures at their facilities. Supermarkets exemplify the benefits of automated demand response solutions. EnerNOC helps supermarket customers automatically shed electric consumption from the grid across hundreds of stores during a demand response event—without interrupting business continuity. Using data collected with Echelon's i.LON Server, EnerNOC can remotely dim lights, make slight adjustments to refrigeration temperatures and air conditioning units, and initiate on-site backup generators. The aggregation of these small reductions in energy use at each store can help stabilize the grid and prevent a blackout. "Commercial, institutional, and industrial end-use customers can't afford unreliable energy supply or fluctuations in power quality," says EnerNOC CEO Tim Healy. "Demand response eases their operational concerns, while providing them with tools to increase their overall energy efficiency. Echelon's i.LON Internet Server helps us reliably collect energy meter data so that we can monitor and report demand response performance." Bea Yormark, Echelon President and COO, adds, "Automatic curtailment has revolutionized demand response because it increases efficiency and simplifies participation. We are pleased to couple our products with EnerNOC's technology to address the energy crisis and reduce the strain on limited environmental resources by deferring or preventing the construction of additional power generation facilities. It is a win-win situation for both energy providers and energy consumers." About Echelon Corporation ### Echelon, LonWorks, i.LON, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. One Click Curtailment is a trademark of EnerNOC, Inc. 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 demand response and other applications by EnerNOC and others; risks that these products and demand response services do not perform as designed, and that liability may accrue as a result of the use of Echelon products and services in demand response; risks associated with the any changes that may occur in the directives regarding demand response, safety or other policies, and acceptance by local or regional government agencies of LonWorks based solutions and demand response services generally; 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
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