ERCO Links Echelon’s i.LON SmartServer and LonWorks Controls with DALI Lighting Solutions

Echelon Corporation (NASDAQ:ELON) today announced that ERCO GmbH, a market leading manufacturer of hardware and software for architectural lighting, has developed firmware that enables Echelon’s i.LON^® SmartServer to monitor and control its Light System DALI lighting solutions. The announcement was made today at the 2010 Light+Building event in Frankfurt, Germany, http://light-building.messefrankfurt.com/. Echelon and ERCO are providing a demonstration of the solution in Echelon’s booth, hall 9.0, E10.

DALI (Digital Addressable Lighting Interface) is an IEC standard used in lighting control systems. Echelon’s i.LON SmartServer is a versatile smart energy manager that helps businesses achieve their operating and energy-efficiency goals. A key feature of the SmartServer is the ability for users to connect to legacy equipment and systems as well as existing networks (such as a DALI network) using custom-developed software modules to support specific application needs.

The ERCO i.LON SmartServer Firmware enables DALI lighting networks to be integrated into LonWorks building control systems and building energy management systems, enabling dimming and control by light scenes, luminaire groups and sequences. Energy consumption can be displayed and adjusted by light scenes and building zones.

"Lighting systems use 30% or more of the total energy in a typical commercial building. Facility managers and building owners need to curb their rising costs of operation. Our solution provides the information and control to easily increase energy efficiency,” said Jens von der Brelie, head of electronics development at ERCO. "The combination of LonWorks controls and our DALI lighting products enables efficient energy use, bottom line benefits, and better working environments.”

"Lighting and heating/air-conditioning are the two areas that must be controlled better to decrease the energy consumption in commercial buildings. By some estimates, lighting alone can be as much as one fourth of a nation’s electricity use. ERCO is leading the way in architectural and advanced lighting solutions. Combining their systems with LonWorks building control systems lets end-users better manage their overall energy using a holistic view of their operations,” said Martin Boettner, sales director, Germany and Eastern Europe, Echelon. "The combination proves that lighting systems can be beautiful, energy aware, and smart.”

The firmware is free and can be downloaded at the ERCO website at www.erco.com/download.

More information about Echelon’s LonWorks platform and the entire suite of products can be found at http://www.echelon.com/lonworks. Or visit Echelon and its partners April 11-16 at the 2010 Light+Building event in Frankfurt, Germany, http://light-building.messefrankfurt.com/

About ERCO GmbH

ERCO GmbH, Lüdenscheid, is one of the leading companies in the luminaire industry. The family business founded in 1934 now operates with over 60 subsidiaries, branches and agencies all around the world. Working together with internationally renowned designers, lighting engineers and architects, ERCO develops hardware and software for all areas of architectural lighting: luminaires and lighting systems for indoor and outdoor areas, as well as lighting control and software for scenographic lighting applications. In keeping with the corporate philosophy of "Light not luminaires," lighting equipment is not offered simply as furnishing for rooms, but rather luminaries are offered as instruments of lighting design. Many demanding architectural projects are illuminated using ERCO equipment, including the Berlin Reichstag, the Louvre in Paris and the Guggenheim Museum in Bilbao. In 2008 ERCO's ca. 1080 strong worldwide workforce produced sales of 159 million euros. More information about ERCO can be found at www.erco.com.

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, i.LON 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 market acceptance of Echelon’s products including i.LON SmartServers, and the timing and level of customer orders; risks that Echelon offerings do not perform as designed and that liability may accrue as a result; 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.