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Echelon Wins New Advanced Metering Project in Austria

(San Jose, CA - June 21, 2007) - Echelon Corporation (NASDAQ: ELON) today announced that Stadtwerke Feldkirch, the municipal utility for the city of Feldkirch, Austria, has chosen Echelon's Networked Energy Services (NES) system for an advanced metering project. NES Value-Added Reseller SITRONICS Telecom Solutions will provide the advanced metering solution, including their NES based UTILIS Real-Time Meter Management system, to provide better customer service at lower cost and provide a path to enable Stadtwerke Feldkirch to fulfil obligations under European Energy directives to provide customers with information that enables more efficient energy use. Following a successful 330 household pilot project started last June, this new award increases the project scope to an additional 3,000 customers.

"Our UTILIS system eliminates the old problem of not knowing how much power you have actually consumed, as well as the need to wait for a utility's employee to read the meter," said Mirko Jelcic, head of SITRONICS TS, CZ UTILIS. "Our multifunctional, automatic metering system not only allows Stadtwerke Feldkirch to meet European Union energy directives, it also allows them to improve customer service while creating new and innovative energy consumption programs for end-users."

"The UTILIS system can help utilities fully realize the benefits the NES system brings to them," said Frits Bruggink, Echelon's senior vice-president and general manager, service provider group. "Stadtwerke Feldkirch's selection of an NES based system is an important step forward in the advanced metering market and shows the breadth and depth of business benefits that can be extracted from an advanced metering system."

SITRONICS' UTILIS Real-Time Meter Management system is built on Echelon's NES system advanced metering infrastructure, combining SITRONICS' expertise in call center, billing, network operations, and data management and storage applications with the smart metering infrastructure of the NES system. It enables remote data reading and remote service control in utilities' networks in real-time and features a range of network quality, network management, revenue assurance and customer care features. UTILIS unites the provider's metering network with its ERP and CRM applications and supports full utility convergence. It provides detailed information on the health, status, and operation of the distribution network down to individual customers—allowing utilities to improve the efficiency and quality of the service they provide and creates the opportunity for new flexible tariffs and enhanced customer services for power consumption.

Echelon's NES system provides an open, bidirectional, and extensible infrastructure that enables a comprehensive range of utility applications. The system offers a comprehensive set of energy services, including: two-way automated meter reading; multi-tiered billing; time-of-use and real-time pricing; prepaid metering; remote electrical disconnect and reconnect; distribution system asset optimization; electricity outage detection and restoration management; blackout and brownout elimination; comprehensive revenue protection; real-time direct load control; power quality measurement; and extensive tamper detection features.

About Stadtwerke Feldkirch
Stadtwerke Feldkirch is the municipal utility supplier in Feldkirch, Austria. The company supplies the approximately 31,000 citizens of Feldkirch with electricity, drinking water and other services. Thanks to its progressive management, Stadtwerke Feldkirch is a national leader in deploying modern technologies such as smart metering and harnessing renewable energy sources. For more information, please visit http://www.stadtwerke-feldkirch.at.

About SITRONICS Telecom Solutions, Czech Republic (SITRONICS TS, CZ)
Founded in the Czech Republic in 1993, SITRONICS Telecom Solutions Czech Republic develops and produces high-end communications equipment and ICT systems with proven performance and reliability. The company also provides diverse services to enable its customers to effectively plan network development and to optimize business processes. The company is a member of SITRONICS JSC (LSE: SITR), a subsidiary of AFK SISTEMA, the largest diversified holding company in Russia. For more information, please visit http://www.sitronicsts.com.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is a networking company that provides products and systems that can monitor and save energy, lower costs, improve productivity and enhance service, quality, safety and convenience by networking together everyday devices in utility, buildings, industrial, transportation and home control systems. Tens of millions of smart devices based on Echelon's LonWorks products and Networked Energy Services (NES) systems are in use around the world today bringing benefits to consumers and industry. More information about 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. 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, including statements regarding the size and timing of Stadtwerke Feldkirch project. Such statements may involve risks and uncertainties, including risks associated with the ability of the UTILIS system, and the NES system on which it is based, to perform as designed, potential production or shipment delays for NES meters and other components; the risk that the application of U.S. generally accepted accounting principles could significantly affect the timing of NES revenues that Echelon expects to recognize under the project; risks that the deployment and system integration activities with SITRONICS or other partners in the project are not successful, do not meet their target dates, do not expand or gain momentum or cause the Stadtwerke Feldkirch to terminate the project; 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 Contacts:

 

Julia O'Shaughnessy
Echelon Corporation
+1 (408) 938-5357
julia@echelon.com

Allyson Stinchfield
Atomic Public Relations
+1 (415) 402-0230
allyson@atomicpr.com

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