Echelon to Help Increase European Energy Efficiency With Intelligent Street Lighting

Echelon Corporation (NASDAQ:ELON), a global networkingcompany providing technology and solutions for controls, smartmetering, and energy and environment management, today announced thatit will participate in the E-Street initiative, a research group aimedat further developing a solution for reducing energy usage in outdoorlighting systems in the European Union (EU). E-Street, the IntelligentRoad and Street Lighting panel, is comprised of the world's leadingcompanies experienced in producing intelligent, networked streetlightsystems that can provide as much as a 70% reduction in energy usage.E-Street is part of the EU's Intelligent Energy Europe programdesigned to promote energy efficiency and renewable energy sources.Echelon has been the world's leader in control networking technologyfor over a decade and is a pioneer in the space of M2M infrastructurerequired for intelligent streetlight applications. The E-Streetinitiative will play a pivotal role in determining EU standards andlegislation for managed outdoor lighting systems.

"Extending the power of control networks to streetlight systemsnot only allows cities to drastically reduce energy and maintenancecosts, but this increased efficiency also reduces energy waste,correspondingly reducing CO2 emissions affiliated with energyproduction," said Henk Walraven, managing director, Central EuropeMiddle East and Africa, Echelon Corporation. "A smart, networkedstreetlight system offers immediate and substantial cost savings, andthe overall return on investment time is quite impressive, allowingcities to quickly see benefits from the new system."

Traditional streetlight systems use mechanical ballasts that areeither fully on or off. Such ballasts waste energy because they remainon at a constant light level throughout the night, causingstreetlights to account for the largest percentage of energy usage ofa town and contributing to CO2 emissions worldwide due to inefficientenergy consumption. These older systems are expensive and cumbersometo maintain, relying on resident notification or drive-bys todetermine which lights are no longer functioning properly.Furthermore, because such systems are always at maximum light outputwhen they are on, they are a chief cause of light pollution -- aconcern in growing urban areas where night time lighting levelscontinue to intensify.

Applying Echelon's control networking technology to publiclighting systems transforms them into dynamic networks that can reduceenergy use, increase public safety through intelligent yet invisibleinteractions with the surrounding environment, reduce maintenance andlong-term system costs, and can act as the infrastructure foradditional beneficial applications like intelligent traffic routing.Such systems leverage a proven architecture and network designapproach -- the same that has been successfully deployed in over 27million Italian homes and tens of thousands of commercial buildingautomation systems worldwide. Echelon's approach provides anunderlying controls platform based on international standards fromANSI, CEN and IEEE thus allowing a market for manufacturers of streetlighting components and systems to compete in an open and fair marketfor municipal contracts. Furthermore, municipalities can leverage thestreet lighting communications infrastructure investment by easilyadding non-lighting devices.

About Intelligent Street Lighting Systems Using Echelon'sTechnology

Echelon recognized that applying modern control networkingtechnology could dramatically improve the energy efficiency andutility of street lighting systems worldwide while also reducingnegative impacts on the environment. Street lighting systems utilizingEchelon's control networking technology can be monitored andcontrolled from anywhere, delivering light intelligently based uponreal-time conditions such as time of day, traffic flow and density,pedestrian presence, ambient light and weather conditions. Thesesystems feature electronic ballasts equipped with Echelon's power linetechnology and the i.LON(R) Internet Server to communicate essentialinformation such as energy usage and remaining bulb life expectancy tomaintenance crews and to advise if a bulb has failed or suffereddamage. Such systems can increase safety in light critical areas, suchas tunnels, exit and entrance ramps, and crosswalks.

A key energy saving feature is the ability to dim some or allstreetlights when traffic is light, for example, in the middle of thenight. Dimming levels can be adjusted according to date or specialevents, or light levels can be easily increased under adverse weatherconditions or high traffic density to make travel safer. Intelligentdimming reduces inventory costs by extending lamp life, lowers laborcosts associated with frequent lamp replacement, and can mitigateliabilities associated with accidents that might be attributed to alamp that has failed and has not been replaced.

About The Intelligent Energy - Europe Program and the E-StreetInitiative

Intelligent Energy - Europe is an EU program for the promotion ofenergy efficiency and renewable energy sources. With a total budget ofEUR 250 million, Intelligent Energy - Europe supports more than 200international projects, over 30 local/regional energy managementagencies, and just under 30 European events in four main areas: Newand renewable energy sources (ALTENER); Energy efficiency, notably inbuildings and industry (SAVE); Energy aspects of transport (STEER);and co-operation with developing countries (COOPENER).

The E-Street group consists of approximately 40 people from 11countries, and includes representatives from large cities, roadauthorities and several manufacturers of luminaires, ballasts andsoftware. The goal for the initiative is to promote and lead the wayin managed outdoor lighting for cities and road authorities in Europe,including the assessment and review of energy savings for differentsettings (retrofit and new installations), provoking fasterdevelopment of intelligent streetlight legislation and standards, andthe replication of successful installations throughout Europe.

Further information regarding the Intelligent Energy - Europeprogram and the E-Street initiative can be found athttp://europa.eu.int/comm/energy/intelligent/index_en.html andhttp://www.nois.no/www/technocad/light/.

About Echelon Corporation

Echelon Corporation (NASDAQ:ELON) is a pioneer and world leaderin control networking -- networks that connect machines and otherelectronic devices -- for the purpose of sensing, monitoring andcontrolling the world around us. Echelon's LonWorks(R) platform forcontrol networking was released in 1990 and has become a worldwidestandard in the building, industrial, transportation, and homeautomation markets. Launched in 2003, Echelon's Networked EnergyServices system is an open, extensible, advanced meteringinfrastructure that can bring benefits to every aspect of a utility'soperation, from metering and customer services to distributionoperations and value-added business. In 2005 Echelon released theworld's first embedded control network infrastructure, the Pyxos(TM)platform, extending the benefits of networking inside machines to thesensors and actuators that make them function.

Echelon is based in San Jose, California, with offices in China,France, Germany, Italy, Hong Kong, Japan, Korea, The Netherlands, andthe United Kingdom. Further information regarding Echelon can be foundat http://www.echelon.com.

Echelon, LonWorks, i.LON, and the Echelon logo are registeredtrademarks of Echelon Corporation registered in the United States andother countries. Pyxos is a trademark of Echelon Corporation in theUnited States and other countries. Other product or service namesmentioned herein are the trademarks of their respective owners.

This press release may contain statements relating to futureplans, events or performance. Such statements may involve risks anduncertainties, including risks associated with uncertaintiespertaining to the timing and level of customer orders and demand forEchelon products and services in outdoor lighting and otherapplications in the European Union and elsewhere; risks that theseproducts do not perform as designed, and that liability may accrue asa result of the use of Echelon products and services in outdoorlighting applications; risks associated with the any changes that mayoccur in the European Union directives regarding outdoor lighting,safety or other policies, and acceptance by local, regional andEuropean Union government agencies of LonWorks based solutions; thegrowth of the LonWorks industry; and other risks identified inEchelon's SEC filings. Actual results, events and performance maydiffer materially. Readers are cautioned not to place undue relianceon these forward-looking statements, which speak only as of the datehereof. Echelon undertakes no obligation to release publicly theresult of any revisions to these forward-looking statements that maybe made to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.