TAC signs a co-operation agreement with Echelon broadening its role as a systems integrator within the field of building automation

(October 13, 1999) -

The Swedish TAC Group has signed a strategically important co-operation agreement with the US company, Echelon Corporation(NASDAQ: ELON). The agreement is included as one element in TAC's investment in the development and manufacture of products and systems for building automation systems based on LonWorks, Echelon's open communications technology. The agreement means that TAC will be utilising Echelon's software tool, LonMaker for Windows, as its network and integration tool. In doing this, TAC is further reinforcing its market position as the leading integrator of LonWorks-based system designs within the field of building automation.

[an error occurred while processing this directive]In the beginning of the 1990's the TAC Group, with its headquarters in Malmö, Sweden, was one of the first companies in the world to launch building control products based on Echelon's open communications technology, LonWorks.

The technology makes it possible to create solutions for building automation systems, in which LonWorks products from various manufacturers are integrated into a shared network, making building management more efficient, as well as providing new, intelligent functions. After rapidly breaking through onto the market with LonWorks, TAC has reached a leading position as regards the development and manufacture of LonWorks products, such as TAC Xenta®, as well as the integration of LonWorks solutions using products from other companies.

Peter Rexelius, TAC's Vice President, R&D, views the fact that Echelon now enters into a co-operation agreement as proof of TAC's strong market position. Recently, TAC's product series of programmable controllers became LonMark-certified. Mr Rexelius believes that this extended co-operation is going to push technical developments even further.

"Because we are going to be using LonMaker for Windows within our entire organisation in the future, we will become even stronger as regards our range of total integration solutions. Having access to LonMaker for Windows and the Echelon plug-in standard for LNS network architecture will further simplify the integration of our products with other product makes. A very important additional element of the agreement is that it covers technological collaboration and the exchange of practical experience. I am convinced that our collaboration will be to the advantage of both parties, and will promote developments even more rapidly than today."

Hooking-up buildings via the Internet
The clear development trend, mentioned by Peter Rexelius as being of great interest to TAC, is towards solutions that make it possible to hook up to buildings via the Internet. TAC has been collaborating on various EU projects in which work has been directed towards producing new technology and new solutions for communication within and between buildings. Mr Rexelius views this extended co-operation with Echelon as yet another interesting opportunity to speed up development work by producing exciting future solutions such as various Internet concepts.

Frits Bruggink, Vice President EMEA, Echelon expresses his view of the signed agreement: "Echelon is very happy to see that LNS and LonMaker for Windows (LM4W) are reason for TAC to take the next step towards open decentralized networked solutions for building automation. We feel that TAC is the logical partner to enter such a close cooperation with. TAC has years of experience in building LonWorks solutions for their customers and is considered a quality supplier second to none. Echelon is convinced that the cooperation will lead to an even greater acceptance and a faster development of networked solutions for buildings. The standard of the LNS plug-in for interoperable products and the ease of installation with the standard tool LM4W will contribute to achieve this goal. A very important next step now is to connect these networked solutions via the Internet as wide area network solution. With this shared vision Echelon and TAC open new business opportunities in remote- management -monitoring and - supervisory control that were until today unthinkable."

For further information you can contact TAC in Malmö,
phone +46 40 38 68 50:
Peter Rexelius, Vice President, R&D, e-mail: pere@tac.se
Paul Hansson, Marketing Manager, e-mail: paha@tac.se
Or look at www.tac.se

Facts about the TAC group:
TAC is one of the leading suppliers of integrated systems for building automation and for monitoring and regulating district heating systems and other applicationsÔ on the market. The term articulates the company's ambition of developing, manufacturing and marketing open systems solutions which improve the indoor environment and provide the building owner with added value in the form of lower operating costs and attractive properties. Owner is EQT. TAC's head office with development and marketing is in Malmö, Sweden, and manufacturing is located in Västerhaninge just outside Stockholm. The TAC group has a total of around 1 000 employees and an annual turnover of around SEK 1 billion. The group has subsidiaries in the Nordic countries, the United Kingdom, Germany, Poland, Russia and Singapore. A network of associated partners is located in further 40 or so countries.

TAC Xenta®, TAC Menta® and TAC Vista® are registered trademarks of TAC AB in Sweden. LonWorks®, LonMaker™, LNS™ and LonMark® are registered trademarks of Echelon Corp., USA.

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