Echelon Ships One Millionth Smart Energy Meter

Smart Grid Installations Increasing Worldwide
SAN JOSE, Calif.--(Business Wire)--Echelon Corporation (NASDAQ:ELON) announced today that it has
shipped its one millionth advanced electricity meter. The meters are a
key component of Echelon's Networked Energy Services (NES) advanced
metering infrastructure (AMI) system, one of the world's leading
advanced metering infrastructure platforms. All NES meters worldwide
are built on the same set of proven ANSI standards and the same core
electronics and networking technology, making the NES system the only
global AMI platform on the market today.

Unlike first-generation electronic meters, which are little more
than digital implementations of electromechanical meters with minimal
incremental functionality, all NES electricity meters include built-in
networking, an integrated software-controlled disconnect; a wide range
of energy, power quality, theft detection, data recording
capabilities; and remote firmware upgrade support to provide a
"future-proof" platform to address the requirements of today and the
future.

Importantly, the meters play a critical role in the NES system's
ability to allow utilities and their customers to create in-home
networks of smart appliances, lights, thermostats, pool pumps, etc.
that can automatically and conveniently reduce energy consumption and
move energy demand to times when energy is less costly and more
available.

"The promise of the smart grid has been described as 'one of the
greatest advancements of the 21st century'," said Ken Oshman, chairman
and CEO of Echelon. "We whole-heartedly share this vision. The NES
system was designed around the concept of bringing the power of open,
standard networks to the electrical grid, where meters of the past are
replaced by intelligent devices of the future that not only meter
energy, but also help utilities and their customers better understand
and manage energy consumption. We are proud to have worked with
utilities around the world to help them take part in this revolution
and to have reached the significant one-million meter milestone so
quickly."

Increasingly, regulators around the world are adopting or
encouraging utilities to deploy advanced metering infrastructure as
part of plans to improve quality of service, better balance energy
supply and demand, and reduce greenhouse gas emissions. Various
studies, including a recent report by the U.S. Energy Department, have
shown that smart meters can help cut power bills for consumers by 10
percent by enabling time sensitive energy rates. Echelon's NES system
has been deployed in numerous advanced metering infrastructure
projects worldwide in countries such as Australia, Austria, Denmark,
The Netherlands, Russia, Sweden, and the United States.

Built on proven Internet, device networking, and metering
standards, Echelon's NES system provides an open, bidirectional, and
extensible infrastructure to provide a "future-proof" platform to
address the requirements of today and tomorrow. The system enables a
comprehensive range of utility applications that can bring benefits to
every aspect of a utility's operation, from metering, to customer
services, to distribution operations, to value-added services.

About Echelon Corporation

Echelon Corporation (NASDAQ:ELON) is a networking company that
provides products and systems that can monitor and save energy; lower
costs; improve productivity; and enhance service, quality, safety, and
convenience by connecting everyday devices in utility, buildings,
industrial, transportation, and home control systems. Tens of millions
of smart devices based on Echelon's LonWorks(R) products and Networked
Energy Services (NES) systems are used around the world today,
bringing benefits to consumers and industry. 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 market acceptance of
the NES system; the timing and level of orders for Echelon's NES
products; the ability of NES products 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.

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

Copyright Business Wire 2008