Vattenfall AB Exercises Option for Nearly 100,000 Additional Echelon Meters(San Jose, CA - April 25, 2007) - Echelon Corporation (NASDAQ: ELON) announced today that the Swedish utility Vattenfall AB has exercised a third option for up to 100,000 additional Echelon NES meters and associated data concentrators and system software, bringing the total number of meters released under the project to about 600,000. Revenue to Echelon under the options announced today is expected to be approximately $7 million, depending upon the mix and total number of products ordered, with shipments expected to take place over a 9 to 12 month period beginning in the fourth quarter of 2007. "The NES based Titanium advanced metering system that our partner Telvent is installing at Vattenfall is, we believe, one of the most successful deployments of next generation metering technology occurring today," said Ken Oshman, Echelon's chairman and CEO. "By exercising this option so quickly on the heels of the exercise of two other options just a few months ago, we believe Vattenfall has again demonstrated the value of the NES system as the market's premier advanced metering system and Telvent as a trusted project management partner." "Led by utilities like Vattenfall, the metering market is undergoing a transformation, moving to smart meters and advanced metering systems that will power the 21st century. Our project with Vattenfall is certainly one of the most successful advanced metering projects in Europe, if not the world," said Manuel Sánchez Ortega, Telvent's chairman and chief executive officer. "The project is a showcase for others to follow and demonstrates Telvent's world-class ability to execute such large scale projects." Additional information about the December 2005 framework agreement between Vattenfall and Echelon may be found at http://www.echelon.com/company/press/2005/vattenfall05.htm. Additional information about the first set of options exercised by Vattenfall can be found at http://www.echelon.com/company/press/vattenfall07.htm. About Telvent About Vattenfall About Echelon Corporation ### 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 number of NES meters that may be ordered for the Vattenfall project under the options or otherwise, the timing of shipments of Echelon's NES products, the delivery of updates for the Vattenfall project by Echelon, the amount and timing of Echelon revenues from the project, and the status of the Vattenfall project. Such statements may involve risks and uncertainties, including the risk that Echelon does not receive firm purchase orders for the designated options in a timely manner or at all; potential production or shipment delays of NES products and components by Echelon or its production partners; risks that the deployment and system integration activities with Echelon, Telvent and other partners in the project encounter difficulties, do not meet their target dates or cause Echelon to be liable for penalties; the risk that complicated revenue recognition requirements under United States generally accepted accounting principles will affect the timing of recognizing revenue from the Vattenfall 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
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