Echelon's Technology Hits Chinese Consumer Market through B&Q Retail StoresPermay's Intelligent Home Automation Products Offer Effective Solution and Easy Installation(San Jose, CA - January 2, 2008) - Echelon Corporation (NASDAQ: ELON), a leading provider of networking technology that is used to manage and reduce energy consumption, today announced that Shenzhen Permay Technology Co. Ltd. has introduced a lighting and appliance control system for consumers in China based on the LonWorks® networking platform and Echelon's power line networking technology. The intelligent lighting solution for homes is available now at B&Q stores in Shenzhen, China, making it the first LonWorks based lighting and appliance control solution for the Chinese consumer market. With over 50 stores, B&Q is China's largest home improvement warehouse store chain. "We built our home control solution on Echelon's networking platform because Echelon delivers the key attributes that we view as necessary for success in the high-volume retail market —high reliability, great simplicity and low cost," said Wanming Zhang, president of Permay. "Homeowners demand products that are powerful, yet easy to use and install. Building on Echelon's base, our solution makes energy savings and home lighting control a reality for the average homeowner in China. Middle income households are the fastest growing segment of the Chinese population; we see this as an enormous long-term opportunity." Click image to enhance or reduce. Permay's intelligent home solution offers consumers a convenient, cost-effective, and easy way to save energy by networking lights and appliances in a home. Permay's products consist of intelligent light switches and sockets that use Echelon's power line networking products to communicate over existing electricity wires, meaning that no new wires need to be installed. A remote control enables home owners to turn lights on or off with the simple press of a button or lights can be programmed and controlled by computer to set lighting schedules or appliance schedules. Power line communication is more reliable and cost effective than radio frequency (RF) technology in homes because it can communicate in all types of structures, including masonry, is not susceptible to noise from other wireless devices, and is low maintenance since it does not require batteries as a source of power. Installation costs are low, even for remodel projects, because no new wires are required. Network communication occurs over the existing power lines, meaning that when a device is plugged into a power outlet, it automatically becomes part of the home automation network. "With their LonWorks based solution, Permay has created a winning combination of ease of use, high value to the consumer, and convenience," said Mark Rodman, Echelon's regional director for Asia Pacific. "Combined with distribution in one of China's top retail outlets, we believe they have positioned themselves to help launch the Chinese residential home automation market." 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. Such statements may involve risks and uncertainties, including risks associated with uncertainties pertaining to the timing and level of customer orders and demand for products and services based on the LonWorks networking platform and Echelon's power line networking technology in home automation and other applications in China and elsewhere; risks that these products do not perform as designed, and that liability may accrue as a result of the use of Echelon products and services in home automation or other applications; risks relating to 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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