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Press Release - June 2000
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Echelon News

Hitachi Plant Joins Echelon's Authorized Network Integrator Program
Echelon Reaches Milestone in Industrial Market, Signs Leading Designer of Semiconductor Plant Integration Systems

(Palo Alto, CA - May 15, 2000) - Echelon Corporation (NASDAQ: ELON), announced today that Hitachi Plant Engineering and Construction Co., Ltd. (HPC), has signed on as Echelon's first Authorized Network Integrator (ANI) to specialize in designing LONWORKS®, based automation systems for semiconductor fabrication facilities. The agreement, effective May 1st, allows HPC to utilize the LONWORKS platform as the basis for open, interoperable clean room facilities in Japan. HPC has the largest market share in designing automation systems for clean room facilities in Japan, making this agreement a significant milestone for Echelon's ANI program.


Enel and Echelon Sign Preliminary Agreement to Network 27 Million Italian Homes

(Palo Alto, CA - May 10, 2000) - Echelon Corporation (NASDAQ: ELON), the leader in networking everyday devices, and Enel SpA (NYSE: EN; Milan: ENEL), the largest traded electric utility worldwide, announced today that they have signed a non-binding memorandum of understanding under which Enel will integrate Echelon's LONWORKS® system into its digital meter project. Enel will provide electricity digital meters and a complete home networking infrastructure to over 27 million Italian households over a three-year period. Under the terms of the proposed agreement, Enel will also purchase 3 million shares of newly issued Echelon common stock.

The initial set of planned services includes remote meter reading, demand side management, and remote customer connect/disconnect. Under the proposed agreement, Echelon will support Enel in providing a complete end-to-end home networking infrastructure, including: devices for every meter to enable communication over the existing power lines based on the Neuron® chip and Echelon's PLT-22 power line transceiver; data concentrators at each utility substation; LNS™ network operating system software; and gateways to enable communication to indoor devices. The companies expect to reach a definitive agreement in June and to begin installing systems in the first quarter of 2001.


Echelon and Sun Microsystems Form Alliance to Connect LONWORKS® Networks with Java™ Technology Services
Companies Collaborate on Joint Marketing Efforts

Control Solutions, Inc (San Diego, CA - May 4, 2000) - Echelon Corporation (NASDAQ: ELON) and Sun Microsystems, Inc. (NASDAQ: SUNW) announced today at the CONNECTIONS™ 2000 conference that they have entered into a memorandum of understanding to integrate LONWORKS® networks with Java™ technology-based services for set-top boxes, residential gateways, and other gateway devices. The cooperation will be based on the recently released specification from the Open Services Gateway initiative (OSGi), a non-profit industry group created to define a unified broadband connection specification for Internet-based services. The residential gateway market is predicted by Cahners In-Stat to reach $2.9 billion in worldwide revenues by 2003.

By integrating Echelon's LonWorks networking services with the JES software, licensees of Sun's JES software will be able to build gateways that connect to thousands of different LonWorks based products and offer a myriad of enhanced services. For example, a residential gateway based on JES software with a LonWorks connection could provide value-added services such as energy management and security monitoring by communicating over a home's existing power lines to LonWorks energy and security devices. Or, the residential gateway could recognize when a LonWorks based home appliance is plugged into a wall outlet and download a Java based appliance monitoring and repair service on demand.

As part of the proposed agreement, Echelon will also include Sun's LonWorks enabled JES software in a future version of Echelon's i.LON™ 1000 Internet Server product family. A Cisco NetWorks™ certified product, the i.LON enables everyday devices networked with LonWorks technology to be monitored, controlled, diagnosed, and updated over the Internet. Integrating JES technology into future i.LONs will accelerate the market for value-added Java technology services in the building, industrial, and residential markets. When used in commercial buildings, for example, services such as facility management, tenant management, and energy optimization could be accomplished over the Internet via the i.LON. Moreover, these services could be dynamically updated, replaced, or removed as the needs of building occupants and owners change over time.


Echelon Presents Diverse Applications for the Digital Home® at CONNECTIONS™ 2000

(San Diego, CA - May 4, 2000) - At the CONNECTIONSô 2000 conference today, Echelon Corporation (NASDAQ: ELON) is showcasing the comfort, security, convenience, cost savings, and peace-of-mind benefits that homes networked with the company's LonWorks® system bring to homeowners and service providers. The demonstration at CONNECTIONS includes remote access to a private beach house in Capitola, California, networked with the LonWorks platform and connected to the Internet with an i.LON™ 1000 Internet Server. The Capitola house, designed by smart-home consulting company cyberManor, includes Internet access and control of the home is heating furnace, living room lights, and hot tub from anywhere in the world using a standard web browser.


Further information can be found at http://www.echelon.com. [



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