Echelon's Technology Selected for Chicago's Next Generation Subway C

    Business Editors/Transportation Writers/High-Tech Editors

    SAN JOSE, Calif.--(BUSINESS WIRE)--April 27, 2005--Echelon Corporation (Nasdaq:ELON), a pioneer in control networking, and the world's leading supplier of technology for the widely-used LonWorks(R) control networking platform, announced today that the control systems for Chicago Transit Authority's (CTA) next generation subway cars will be based on Echelon's control networking technology. The CTA has released a request-for-proposal (RFP) requiring the use of LonWorks control networks in a 700+ car project -- the largest ever by the CTA. Echelon's revenue per car is expected to be around $600 and, while the total for the CTA project is not a large amount, it is representative of a multi-million Dollar revenue opportunity as transportation authorities around the world adopt Echelon's technology.
    "CTA was looking for a cost-effective, future-proof, highly reliable network monitoring and control solution to oversee critical systems for improved safety, efficiency and overall quality of service," said Tom Sullivan, a transportation technology consultant familiar with the specification. "Echelon's technology platform has everything that was required -- proven reliability in rail applications worldwide, ability to provide real-time information, and the widespread market support to ensure that when the time comes to expand and modify the systems, there will be many vendors from which to choose. Now that the largest and second largest subway systems in the U.S. are both mandating the LonWorks platform, this will likely accelerate the adoption of LonWorks technology on heavy rail vehicles worldwide."
    The CTA's RFP follows the decision to specify LonWorks control networking by the New York City Transit (NYCT), the world's longest subway, which first began mandating LonWorks technology for all of its new subway cars beginning in the mid-1990s. In 1999, the Institute of Electrical and Electronics Engineers (IEEE) adopted the LonWorks platform in its rail transit vehicle standard for intra-car and inter-car automation and control (IEEE-1473-L). Since then, LonWorks networking technology has been mandated and deployed in many transportation systems throughout the United States and other countries, including Helsinki City Transport, Paris Metro, Los Angeles County MTA, San Francisco Bay Area Rapid Transit, AMTRAK, German Federal Railroads and Swiss National Railroads.
    CTA's next generation subway cars will use LonWorks-based control networks to operate passenger communications systems as well as perform critical train control functions such as propulsion and brake monitoring. The ability to access important data from the devices that monitor and control the train cars will dramatically improve a train crew's ability to rapidly identify and correct problems en route and allow maintenance crews to make repairs more quickly, thereby reducing costly down time. Additionally, the network will provide an enhanced passenger experience through more accurate destination and schedule status information, all updated in real-time. Among the vehicle subsystems being monitored and controlled by LonWorks control networks are:

    Automatic Train Control

    Auxiliary Power Supply System

    Brake Monitoring

    Door System Monitoring

    Event Recorder

    Global Positioning System

    Passenger Information Signs

    Propulsion Control

    Public Address and Intercom

    Smart Card Reader

    Video Surveillance

    "The transportation industry is very important to Echelon," said Anders Axelsson, Echelon's senior vice president of sales and marketing. "Many of the world's biggest and newest subway systems have adopted our networking platform. We believe that the LonWorks control networking platform is becoming the worldwide de facto standard for passenger rail mass transit systems. This latest adoption by the CTA is a strong indicator that transit authorities around the world are accelerating the mandated use of our technology platform."

    About Chicago Transit Authority (CTA)

    Created in 1945, the CTA provides bus and rapid transit rail service to the city of Chicago and 40 neighboring suburbs. It is the nation's second largest transportation system, providing more than 1.5 million rides each day. CTA's 1,190 rapid transit cars operate over seven routes and 222 miles of track. CTA trains provide about 500,000 customer trips each day and serve 144 stations.

    About Echelon Corporation

    Echelon Corporation (Nasdaq:ELON) is a pioneer and world leader in control networking -- networks that connect machines and other electronic devices -- for the purpose of sensing, monitoring and controlling the world around us. Echelon's component and system-level hardware and software products are used by OEMs, VARs, system integrators, utilities -- and virtually every class of institution -- to design, build, deploy and/or operate robust, scaleable, standards-based control networks and devices. Echelon technology can be found in thermostats, light switches and controllers, electricity meters, appliances, heating and air-conditioning systems, traffic signals, trains, aircraft, factories, and buildings -- in more than 50 million "smart" devices made by thousands of manufacturers.
    Echelon is also the creator of the LonWorks platform, an extremely robust, flexible, and expandable standards-based control networking platform upon which manufacturers can build products and applications with unparalleled reliability, security, operational integrity, flexibility, and bottom-line value. The worldwide adoption of the platform prompted the formation of LonMark(R) International, an independent trade organization that certifies LonWorks-based products against an interoperability specification that allows devices from differing manufacturers to work together; educates the market about the value of device interoperability and open control networks; and creates awareness programs for potential end-users, OEM manufacturers, and integrators of LonMark certified products and LonMark systems. For planners, system architects, or OEM designers of control network products and families there is no better choice than Echelon.
    Echelon is based in San Jose, California, with international offices in China, France, Germany, Italy, Hong Kong, Japan, Korea, The Netherlands, and the United Kingdom. Further information regarding Echelon can be found at http://www.echelon.com.

    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 Echelon products and services, development of markets for and acceptance of Echelon's products and services, risks that LonWorks based products made by suppliers other than Echelon will be used in rail applications in Chicago and elsewhere, risks that liability may accrue if Echelon products and services are used by the CTA; risks associated with the any material or non-material changes that may occur in policies or practices of the CTA and awarding of any contracts by the CTA that include LonWorks based products, and completion of the project associated with the request for proposal by the CTA; risks associated with 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.

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CONTACT: Echelon Julia O'Shaughnessy, 408-938-5357 joshaughnessy@echelon.com or Roeder-Johnson Corporation Abigail Johnson or Paul Michelson, 650-802-1850 http://email.roeder-johnson.com

KEYWORD: CALIFORNIA ILLINOIS INDUSTRY KEYWORD: GOVERNMENT TRANSPORTATION SOFTWARE NETWORKING PRODUCT MARKETING AGREEMENTS SOURCE: Echelon Corporation

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