JAPANESE CLIMATE CONTROL ENGINEERING LEADER ADOPTS ECHELON'S LONPOINT® SYSTEM

(Palo Alto, CA - May 20, 1999) - Echelon Corporation (NASDAQ: ELON), the leading provider of LONWORKS® control network solutions worldwide, today announced that Takasago Thermal Engineering Company of Japan has joined Echelon's Authorized Network Integrator Program. Takasago is one of the largest air conditioning engineering companies in Japan and the first HVAC construction firm to become a network integration partner with Echelon. As part of Echelon's Authorized Network Integrator Program, Takasago will become a major installer of open, interoperable, multivendor LONWORKS control networks based on the LonPoint system.

[an error occurred while processing this directive]Takasago has quickly begun to line up LONWORKS installations in Japan. Its first project will be an automated control system for air conditioning equipment in the Koraku 1-chome Mori Building, a 19-story office building located in Bunkyo-ku, Tokyo. The 43,251-square-meter building is scheduled for completion in March 2000. This is the first full-scale LONWORKS climate control system to be installed in a large office building in Japan.

"By becoming a network integration partner with Echelon, Takasago will expand its engineering reputation as a pioneer in distributed control and open network integration projects," said Mr. Tamio Ito, General Manager of Takasago. "Echelon's LONWORKS solution is an accepted worldwide standard; adopting it will allow us to respond to customer needs quickly and cost-effectively. We are proud to be the first in the Japanese climate-control equipment industry to enter into such an agreement with Echelon."

Established in 1997, Echelon's Authorized Network Integrator channel designs, installs and maintains open, interoperable control networks utilizing Echelon's LonPoint System. The LonPoint System, a suite of hardware devices and software tools, provides an open infrastructure that enables the creation of multivendor, interoperable LONWORKS control networks. Authorized Echelon Network Integrators offer their networking and integration expertise to commercial, industrial, municipal, governmental, and institutional facility owners who want the cost, reliability, and flexibility benefits offered by open, nonproprietary control systems.

About Echelon Corp.
Echelon Corporation (NASDAQ: ELON) is the developer of LonWorks networks, recognized internationally as a standard for interoperable control networks. With thousands of application developers and millions of devices installed worldwide, the LonWorks system is a leading open, networked control solution for building and home automation, industrial, transportation, and public utility applications. Echelon offers a full range of off-the-shelf hardware and software products to support the development, installation and management of intelligent, open and interoperable control networks. Echelon is based in Palo Alto, California with international offices in China, France, Germany, Japan, Korea, The Netherlands and the United Kingdom. News and information are available at http://www.echelon.com .

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