Echelon Joins Internet Home Alliance; Provider of LonWorks Technology to Aid Alliance's Delivery of Superior Internet Lifestyle Solutions

Business Wire, June 6, 2001

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 6, 2001

Echelon Corporation (Nasdaq:ELON), the worldwide leader in networking everyday devices, announced that it has joined Internet Home Alliance, a non-profit association of leading high-tech and consumer companies formed to enhance consumers' understanding, appreciation and adoption of the Internet lifestyle. Devices and services enabled by Echelon's LonWorks(R) platform simplify consumers' lives and provide new levels of cost-savings, comfort, convenience and security.

"The Alliance is pleased to add Echelon Corporation to our roster of leading companies that have come together to drive the home networking industry forward," said Bill Kenney, president, Internet Home Alliance, and vice president, emerging home solutions at Sears, Roebuck and Co. "By enabling home appliances and other in-home devices to interact with one another, communicate with the Internet, and to have their operation and value enhanced by services such as energy management, LonWorks networks bring numerous practical benefits for consumers and business opportunities to service providers. Echelon's expertise is vital to the development of comprehensive Internet lifestyle solutions that deliver real value to consumers. We look forward to Echelon's active involvement in the Alliance."

"Echelon and Internet Home Alliance share a common vision that the Internet will continue to have a profound effect on our everyday lives in ways that are just beginning to emerge," said Reza Raji, Echelon's director of business development. "We have only scratched the surface with applications that demonstrate the vast potential of a world where everyday devices are connected to each other and to the Internet. Internet Home Alliance members provide complementary solutions that work together to make the vision of a connected world a reality. We're thrilled to be able to offer the LonWorks platform to this very worthy cause."

The Internet Lifestyle

An Internet lifestyle infuses technology with daily living, resulting in an enhanced quality of life. Individuals will select Internet-enabled applications that best fit their lifestyles and the benefits will range from an increase in timesavings, personal safety and security, entertainment options, educational choices and more. This new generation of Internet lifestyle solutions will be easily integrated into consumers' lives and will include such features as streaming audio and video for entertainment and learning, energy and security monitoring, remote diagnostics, personal and family communication, and simultaneous Internet access from multiple personal computers or Internet appliances.

About Echelon Corporation

Echelon Corporation is the world leader in networking everyday devices. The company offers a comprehensive line of hardware and software products for automating home, utility, building, industrial and transportation applications using LonWorks networks, an international, cross-industry, open standard for interoperable device networks. Echelon is Bringing the Internet to Life(TM) by linking the millions of everyday devices connected with LONWORKS networks to the Internet.

Echelon is based in Sunnyvale, California with international offices in China, France, Germany, Italy, Japan, Korea, The Netherlands, and the United Kingdom. Further information can be found at http://www.echelon.com.

From October 23-24, Echelon and Messe Frankfurt GmbH are holding LonWorld(TM) 2001, the world's premier event devoted solely to LonWorks industry, in Frankfurt, Germany. LonWorld 2001 promises to be the largest-ever gathering of LonWorks developers, integrators, end-users, and other participants in the LonWorks industry. Interested parties should visit http://www.lonworldexpo.com for further details.

About Internet Home Alliance, Inc.

Internet Home Alliance, Inc. is a non-profit association of leading companies working together to advance the home technology industry by developing the ecosystem needed to support the delivery of Internet lifestyle solutions and educating consumers on the value of an Internet lifestyle. The Internet Home Alliance is an open alliance that encourages cross-industry participation. Currently, 25 companies participate in the Alliance. Principal members include Best Buy Co., Inc, Cisco Systems, Inc., General Motors, Invensys, The New Power Company, Panasonic (Matsushita Electric Corporation of America), Sears, Roebuck and Co. and Sun Microsystems. For more information on Internet Home Alliance, visit http://www.internethomealliance.com.

Note to Editors: Echelon, LonWorks, LonMark, the LonMark logo, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. LonWorld and Bringing the Internet to Life are trademarks of Echelon Corporation. Other marks belong to their respective holders.

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, development of markets for Echelon's products and services (particularly with respect to the emerging home networking products and services), 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.