Echelon Wins North Dakota Premier IT Business Award

SAN JOSE, Calif. - (BUSINESS WIRE) - Echelon Corporation (NASDAQ:ELON) announced today that it is the recipient of the Information Technology Council of North Dakota (ITCND) Premier IT Business award. The award recognizes individuals, entities and businesses that play a vital role in developing the North Dakota IT industry. Echelon was selected for its Networked Energy Services (NES) System Software, which is developed in Echelon's Fargo, North Dakota software development center.

Echelon's NES System is a software-driven smart grid solution used by utilities for smart metering, grid management, and customer care purposes. The NES System is an integral part of the smart grid's infrastructure and is comprised of three major components - NES Smart Meters, NES Data Concentrators, and NES System Software - that utilize the grid itself as the communications network.

In utilizing the grid itself, the NES System creates grid intelligence that enables the utility to manage and deploy a single network that provides data about power quality such as voltage, total harmonic distortion, and current analysis that can help the utility operate the grid more reliably and efficiently without the risk and cost associated with dedicated RF meshing networks. The system provides extremely reliable "core" functionality dedicated to advanced metering services including time of use metering, outage detection, theft and tamper detection, very accurate data collection, high reliability, and extensibility from a few thousand to millions of customers.

"Since January 2007, the engineering organization within our Fargo office has grown by over 50 percent to support the rapidly growing smart grid market," said Steve Green, director of engineering, NES System Software, Echelon Fargo. "The NES System Software transforms the metering business of a utility into an intelligent, enterprise data system. Our NES System Software is integrated into a utility's enterprise IT infrastructure through open web interfaces - typically along with custom applications - and provides the software infrastructure that manages the smart grid. With a heightened understanding amongst utilities that the smart grid requires a system, and not just a meter, we expected to see a rapid escalation in the importance of robust, scalable, enterprise software for metering applications."

Echelon's NES smart metering technology is used by utilities worldwide in Austria, Denmark, Finland, Germany, Italy, The Netherlands, Russia, Sweden, Switzerland, the United States, and other countries.

For more information regarding Echelon's NES System visit www.echelon.com/nes.

About Echelon Corporation

Echelon Corporation (NASDAQ:ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid.

Echelon's NES System - the backbone for the smart grid - is used by utilities to replace existing stand-alone electricity meters with a network infrastructure that is open, inexpensive, reliable, and proven. The NES System helps utilities compete more effectively, reduce operating costs, provide expanded services and help energy users manage and reduce overall energy use. Echelon's LonWorks Infrastructure products extend the smart grid, powering tens of millions of energy aware, everyday devices made by thousands of companies - connecting them to each other, to the electricity grid and to the Internet. LonWorks based products work together to monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience in utility, municipal, building, industrial, transportation, and home area networks.

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, demand for products and services, and development of markets for Echelon's NES System; risks associated with market acceptance of the NES System; risks associated with the ability of the NES System and NES meters to perform as designed; 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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Echelon Corporation
Julia O'Shaughnessy, +1-408-938-5357
julia@echelon.com
or
Atomic Public Relations
Allyson Stinchfield, +1-415-402-0230
allyson@atomicpr.com