Echelon Makes Announcement Regarding CEO

SAN JOSE, Calif.--(Business Wire)--
Echelon Corporation (NASDAQ:ELON) announced today that M. Kenneth Oshman, the
company`s Chairman and Chief Executive Officer, has been diagnosed with lung
cancer. Indications are that the cancer is both treatable and curable. Mr.
Oshman is working with medical advisors to assess the appropriate treatment
program going forward and plans to begin treatment as soon as possible. Mr.
Oshman has decided to step down as CEO of Echelon to insure that there is
dedicated full-time leadership at the company and to provide him with time to
focus on his recovery. Mr. Oshman intends to remain an active Executive Chairman
of the company and intends to continue to be involved with Echelon as much as
possible.

The company also announced that its Board of Directors has appointed Robert R.
Maxfield, a current member of the Board, to serve as Chief Executive Officer
effective November 5, 2009, while the company launches a search for a new CEO.
The Board feels enormously fortunate that Mr. Maxfield has agreed to serve in
this capacity. Mr. Maxfield provided outstanding leadership to the company
during 2008 while the company carried out a search for a Senior Vice President,
Products; he has served as an advisor to Mr. Oshman since that time. He is
intimately familiar with the company, its products and its business, and he will
be able to be immediately effective in this role. Mr. Maxfield will continue to
serve on the company`s Board of Directors; however, he will no longer serve on
the Compensation Committee. In addition, the Board has appointed current
director Betsy Rafael to replace Mr. Maxfield on the Compensation Committee.

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, i.LON, LonWorks and the Echelon logo are registered trademarks of
Echelon Corporation registered in the United States and other countries.

Echelon Corporation
Chris Stanfield, 408-938-5243
cstanfield@echelon.com

Copyright Business Wire 2009