LINZ STROM Selects Echelon as Strategic Supplier for Smart Grid Infrastructure

Echelon Corporation (NASDAQ: ELON), a leading provider of smart grid infrastructure solutions, today announced that Austrian electric utility LINZ STROM has exercised an option to purchase an additional 100,000 Echelon Networked Energy Services (NES) smart meters over a three-year period as a result of the success it has had with an initial deployment of the system.

"We chose the NES System three years ago because it was the only solution that was designed to make the grid itself more intelligent and capable,” said Friedrich Eidenberger, CEO of LINZ STROM. "Our high expectations have been met and exceeded with the Echelon NES System and we are delivering smart grid benefits now to our customers. It not only gives us the most advanced communications and control system on the market for meters and other devices, it has proven to be a true foundation for the smart grid – allowing us to expand our services to customers, increase the value and benefit customers derive from us, and significantly lower our operating expenses.”

Eidenberger continued, "In the intervening three years, no other system has been able to match the reliability, flexibility, and expandability of Echelon’s NES System.”

LINZ STROM has been recognized as a smart grid innovator for its advanced metering infrastructure rollout. Ubitronix, a NES value-added reseller and strategic partner of LINZ STROM, is helping to build the overall energy management infrastructure to control electricity meters and other meter types via the M-Bus extension port on the NES meters, as well as to command load control devices, in-home devices and city streetlights based on their modern and field proven Unified Intelligent Energy Management (UIEM) software suite.

"LINZ STROM is truly a forward-looking utility. They are far ahead of other utilities in their commitment to install a future-proof smart grid infrastructure,” said Christoph Schaffer, Ubitronix’s CEO. "LINZ STROM has seen the benefits of our infrastructure approach and is leveraging that infrastructure to make the most of its investment and to extend new, innovative services to its customers.”

LINZ STROM’s NES-based smart grid system includes residential demand response, electricity, gas and water meter reading, streetlight monitoring and control, and direct command and control of specific in-home devices with permission of the consumer. All data collection and command and control are done over the single NES infrastructure, eliminating the redundant infrastructure and inherent cost and complexity of competing solutions that solely utilize RF mesh communications.

"We view LINZ STROM’s decision to standardize on Echelon’s smart grid infrastructure solution as proof positive of another successful implementation and reinforcement of our leadership position in the market,” said Michael Anderson, Echelon’s senior vice president of NES sales and market development. "The solution as delivered by our partner Ubitronix has proven to exceed the needs of the utility and we’re excited by the expansion of the project.”

Echelon’s NES technology is used by utilities worldwide, including in Austria, Denmark, Finland, Germany, The Netherlands, Russia, Sweden, Switzerland, and the United States. Echelon recently announced system-wide updates to the NES System, and the Echelon Control System (ECoS) a new open software platform for intelligent distributed control of the smart grid.

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 control networking infrastructure for the smart grid – enables intelligent distributed control applications and devices that deliver maximum reliability, survivability and responsiveness. Through the ECoS platform, the NES system enables any device, speaking any protocol, connected over any network to be integrated into local decision making and connected securely to enterprise IT systems through virtually any IP network. 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 in to smart buildings factories, homes and other systems, 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 that Echelon offerings do not perform as designed, including in applications for demand response, meter reading, streetlight control, and control of in-home devices, and that liability may accrue as a result; potential production or shipment delays for Echelon products; 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.