U.N. Secretary-General Ban Ki-moon and California Governor Arnold Schwarzenegger Tour Echelon Corporation to Highlight the Role of Technology in Fighting Global Warming

Echelon Corporation (NASDAQ:ELON), a leading provider of networking technology that is used to manage and reduce energy consumption, is pleased to announce that U.N. Secretary-General Ban Ki-moon and California Governor Arnold Schwarzenegger toured Echelon’s networked, energy efficient headquarters on Friday, July 27th as part of the Secretary-General’s visit to California to highlight the role technology plays in improving energy efficiency and reducing greenhouse gas emissions. The Secretary-General has made combating global climate change a top priority of the United Nations and from his position of leadership is working to build support and action across the world. Meanwhile, here in California, Governor Schwarzenegger continues to put the state at the forefront of global environmental leadership by establishing aggressive greenhouse gas emission reduction targets, among other initiatives. Echelon was chosen as the site for the two dignitaries’ historic meeting because the company is a leader in providing products and technology that are being used by companies and countries around the world to reduce energy consumption and greenhouse gas emissions. The company also uses its LonWorks® networking technology to manage and reduce energy consumption within their 80,000 sq. ft. headquarters building which has resulted in a 30% reduction in energy use, $30,000 in annual savings and an overall reduction of energy consumption by an average of 10% per year for the past four years. In the press conference held after the tour, the Governor stated, "We saw some very fantastic technology that is reducing greenhouse gases by improving energy efficiency.” The Governor further commented on Echelon’s technology, "The great thing is that it’s available right now and you don’t have to reinvent the wheel.” He went on to highlight Echelon based applications in China, Italy and the Governor’s native country of Austria. Secretary-General Ban, in his press conference speech noted, "I was very much impressed by what Echelon has been contributing by developing most modern technologies that can help emerging countries to reduce greenhouse gas emissions and fight global warming.” The tour of Echelon’s headquarters focused on three areas – research and development of control networking technology; smart electricity meters and advanced utility grids; and energy applications built on top of control networks. Echelon CEO Ken Oshman and President Bea Yormark showed the Governor and Secretary-General how Echelon technology is a popular choice for control networking due to its capabilities and robustness. The technology meets international safety and regulatory standards worldwide and has been adopted by many standards bodies, making it an ideal choice upon which to build energy management applications. The Governor and Secretary-General were also able to examine and use smart home modules that monitor energy use for existing appliances as well as off-the-shelf products from Echelon customers such as Samsung Electronics that enable control and energy efficiency. While touring Echelon’s advanced metering testing lab, the Governor noted that California companies like Echelon will take the lead in enabling innovative applications like reverse metering – the ability to sell or give back conserved electricity to the grid – and in reducing the need for additional coal-fired plants through smart metering technologies that allow existing capacity to be used more effectively. In the applications portion of the tour the dignitaries were shown how Echelon monitors energy consumption throughout its headquarters, at which point the Governor commented that understanding how we use energy is an essential missing piece in using energy more efficiently and that California technologies will help the world achieve such benefits. It was pointed out that Korea is one of the leading nations in the world in adopting advanced technologies and, through a web browser, Secretary-General Ban was able to connect live to a home on Jeju (Cheju) Island in South Korea that contained a whole-home automation system from Echelon customer KD Network and monitor and control its lighting and heating systems. "We are very honored to have been chosen to represent California technology and Silicon Valley businesses,” said Echelon’s CEO, Ken Oshman. "We believe that one of the largest impediments to implementing valuable and sustainable energy efficiency programs on a global basis is awareness. The visit by Secretary-General Ban and Governor Schwarzenegger is a huge boon to a general understanding that positive global climate change is indeed achievable now. By using products and services available today from companies like Echelon we can not only reduce carbon emissions but we can also reduce costs providing positive benefits to the economy. We don’t have to wait to develop new technologies. Nor must we wait for government mandates. To steadily improve the global climate, energy efficiency is the alternative fuel already in action and within our grasp today.” The visit is part of Governor Schwarzenegger ongoing campaign to help protect California’s environment and fight climate change. Most recently, Governor Schwarzenegger announced an agreement with western states to reduce greenhouse gas emissions and called on other states to adopt a low carbon fuel standard based upon the model being developed in California. Last September, the Governor signed the Global Warming Solutions Act of 2006, California’s landmark bill that established a first-in-the-world program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gases. The law will reduce carbon emissions to 1990 levels by the year 2020 and to 80 percent below 1990 levels by the year 2050. The dignitaries remarked on the remarkable technology displayed on the Echelon tour and reiterated how it is available today around the world. Secretary-General Ban also invited the Governor to participate in an historic meeting on September 24th of world leaders to discuss global climate change and how the U.N. will act to effect positive change during the next decade. The Governor accepted the invitation. Echelon’s products are used worldwide to help reduce energy consumption, increase operational efficiency and reduce maintenance costs. Examples include: McDonald’s is using Echelon’s technology in its "kitchen of the future” to network kitchen equipment to increase energy and operations efficiency; The Swedish utility Vattenfall AB is installing an Echelon advanced metering network to 600,000 of its customers; Retailer Eddie Bauer Inc. reduced energy costs by 20% at its 2.2-million-square-foot fulfillment center in Groveport, Ohio, with a management system based on Echelon’s LonWorks technology; The City of Oslo in Norway has cut energy use by 62% with a LonWorks streetlight solution that dims streetlights in off hours and significantly reduces maintenance costs. More information regarding these and other LonWorks projects can be found at: http://www.echelon.com/solutions/building/buildingapps.htm. More information about the California Climate Change Council can be found at: http://www.climatechange.ca.gov/. The full video recording of the press conference can be viewed at the Governor’s web site at http://gov.ca.gov. About Echelon Corporation Echelon Corporation (NASDAQ:ELON) is a networking company that provides products and systems that can monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience by connecting everyday devices in utility, buildings, industrial, transportation, and home control systems. Tens of millions of smart devices based on Echelon’s LonWorks products and Networked Energy Services (NES) systems are used around the world today, bringing benefits to consumers and industry. More information about 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; risks that these products do not perform as designed; and that the applications in which they are used do not generate the benefits or savings anticipated; 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.