Echelon and ELO Partner to Extend Smart Grid Solutions to Latin America

SAO PAULO--(Business Wire)--
Echelon Corporation (NASDAQ:ELON) and ELO Sistemas Electronicos S.A. (ELO) today
announced a strategic alliance to bring smart grid solutions to the Latin
American energy market. ELO, the number one supplier of electronic meters and
systems in the Brazilian electricity supply market, has become a value-added
reseller of Echelon`s market-leading Networked Energy Services (NES) System, an
advanced metering infrastructure solution. Echelon and ELO`s collaboration will
be the first extension of Echelon`s advanced smart grid solutions to the Latin
American region. The announcement was made today at the Smart Grid Latin America
Forum & Expo in São Paulo, Brazil.

Brazil`s energy regulator, Aneel, last month announced tentative plans for a
nationwide rollout of smart metering, expecting to replace approximately 63
million electricity meters in the country with smart meters by 2021. ELO`s
customers include the 40 largest electric power distributors in Brazil, which
serve approximately 55 million consumer points. ELO provides equipment and
solutions to obtain data for the billing and marketing of electric power, and to
analyze the distribution grid to help reduce energy theft and to aid in power
management and load control.

According to Marcos Rizzo, vice president of business development, ELO, "We are
excited to bring Echelon`s NES System to the Latin American market where we see
a real need for the many advanced services and features of NES. Much more than a
simple AMI system focused on billing related services, the NES System provides
utilities with a wealth of information about the status, operation and health of
the grid that enables them to reduce operating costs while increasing service
quality."

"We are proud to partner with ELO, a respected system supplier in the Brazilian
energy market," said Jim Andrus, vice president, NES Sales Americas. "ELO`s
innovation and knowledge will ensure a vibrant market for NES-based solutions
and services in Latin America, a new and exciting market for our smart grid
solutions."

Echelon`s NES advanced metering infrastructure consists of a family of highly
integrated, advanced electronic electricity meters accessed via a Web services
based network operating system over an IP networking infrastructure. NES
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.

ELO Sistemas Eletronicos

Founded in 1980, ELO Sistemas Eletronicos is a leading metering provider for the
South America market. With offices in Brazil and Chile, ELO is recognized as a
key supplier of quality electronic equipment and systems to the Brazilian and
South American electricity supply market. ELO provides integrated product and
system packages to utilities to automate processes, such as the collection and
treatment of metering data.

In 1993, ELO introduced the concept of electronic metering for C&I applications
to energy metering in Brazil and is a recognized leader and innovator in the
Brazilian energy market. More information about ELO can be found at
http://www.elonet.com.br.

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 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 potential production or shipment delays for NES
components; 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
or
Elo Sistemas Eletrônicos
Cátherin Saltarini Sahium, +19 2115 4900
catherin@elonet.com.br

Copyright Business Wire 2009