Echelon Launches LonWorks 2.0 Platform for Smart Networks

New Platform Enables More Powerful and Economical Smart Networks in Buildings, Factories, Cities and Homes

SAN JOSE, Calif. & NUREMBERG, Germany--(BUSINESS WIRE)--Mar. 3, 2009--Echelon Corporation (NASDAQ: ELON) today announced the launch of the LonWorks® 2.0 platform, the next generation platform of control networks and products that make it more cost effective than ever to build everyday devices in buildings, factories, city infrastructure, homes and other applications that are smart, connected, and energy aware. This new platform utilizes the latest technology in improving the speed, power, and cost-effectiveness of systems designed to deliver smarter, more convenient environments for work, play, and living while simultaneously lowering energy use.

The LonWorks 2.0 platform brings a new level of performance and simplified installation to control networks based on the ISO/IEC 14908 body of standards and is fully compatible with the millions of intelligent LonWorks devices already deployed worldwide. The announcement was made at the Embedded World Exhibition & Conference underway in Nuremberg, Germany, March 3-5, 2009.

“Since its founding 20 years ago, Echelon has been focused on bringing the power of networks to everyday devices so that they can make better operating decisions and improve our lives. With the increased performance and reduced cost of the LonWorks 2.0 platform, we have expanded the opportunity for even more devices to become smart and energy-aware at a time when the world needs it most,” said Ken Oshman, CEO at Echelon.

“Working together intelligently and automatically in buildings and systems all around us, LonWorks networks can reduce energy consumption and operational costs, while increasing quality, reliability, and comfort. Saving energy has never been more important than now, both with respect to the climate impact and the economic impact – and we are proud to able to play a leading role in making this happen,” Oshman continued.

LonWorks 2.0 based products will accelerate the move to smart networks and products that are energy aware that has been pioneered by companies that have built control applications on the existing LonWorks platform. Smart products and systems that automatically manage their energy usage in response to changing grid conditions have redefined the smart grid. With the LonWorks 2.0 platform, a new generation of cleaner and greener smart networks is possible.

The immediate beneficiary of the initial set of LonWorks 2.0 products will be the commercial building sector – a key energy consuming sector that by some estimates consume as much as 50% of United States’ total electricity generation. The expected impact is likely to be on systems for small buildings and the efficiency retrofit market.

Small buildings comprise over 98% of the commercial building market and almost uniformly lack sophisticated control systems or energy response capabilities. Within the large building market, a call for improved efficiency is expected to accelerate the demand for greater levels of control and accountability for energy incentive programs.

[an error occurred while processing this directive] “Echelon’s LonWorks platform has been the basis of our global building and energy performance business for nearly two decades with tens of thousands of devices deployed worldwide,” said Etienne Veilleux, President and CEO of Distech Controls. “The LonWorks 2.0 products are precisely what this industry needs to carry it forward to the next generation of smarter networks in intelligent, energy aware buildings and further promoting how open technologies support more sustainable practices.”

The first set of LonWorks 2.0 products includes the Neuron® 5000 processor, the FT 5000 Smart Transceiver, the LNS® FX network operating system, the LonMaker® FX installation tool, the NodeBuilder® FX Development Tool and the Mini FX Evaluation Kit. (See related press
release dated March 3, 2009 for additional details and availability, http://www.echelon.com/company/press/2009/lonworks2products.htm.)

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, and providing customers with energy aware homes and businesses that react to conditions on the grid.

Echelon’s NES System – the backbone for the smart grid – is used by utilities to replace existing stand-alone electricity meters with a network infrastructure that is open, inexpensive, reliable, and proven. The NES System helps utilities compete more effectively, reduce operating costs, provide expanded services and help energy users manage and reduce overall energy use. Echelon’s LonWorks® Infrastructure products extend the smart grid, powering tens of millions of energy aware, everyday devices made by thousands of companies – connecting them to each other and the grid. LonWorks based products work together to monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience in utility, municipal, building, industrial, transportation, and home area networks.

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