News Release

Echelon Expands Its Control Operating System (COS) Software For The Smart Grid

COS-based Edge Control Node Now Verizon 3G Certified to be Used for Smart Grid Wide-Area Backhaul

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June 6, 2011

Brett Brune
bbrune@echelon.com
+1-408-839-7625

Christine Simeone
christine_simeone@lpp.com
+1-781-782-5773

SAN JOSE, CA —

Echelon’s Edge Control Node (ECN) is Verizon 3G certified, Echelon (NASDAQ: ELON) announced today. The ECN runs Echelon’s Control Operating System (COS) software, which provides distributed intelligence and control throughout the smart grid and allows utilities to run smart grid applications at the edge of the grid, nearest the consumer. Certifying the ECN product through Verizon Wireless’ Open Development program ensures that utilities can use the nation’s premier wireless network as the backhaul for their smart grid systems.

“Verizon Wireless supports Echelon in its effort to provide smart grid infrastructures that allow utilities to leverage existing, reliable, wireless networks instead of burdening rate-payers with private backhaul networks,” said Aparna Khurjekar, executive director, business solutions at Verizon Wireless. “Making such a field-proven, reliable system like Echelon’s available to customers using our network is a great addition to the solutions we offer in the smart grid market.”

Echelon’s ECN, driven by COS software, is capable of hosting smart grid apps in a similar fashion to Android-based smartphones. Doing so puts intelligent distributed control in every neighborhood to help make the smart grid more reliable and efficient through applications such as intelligent outage restoration, residential solar inverter management, and real-time energy availability information processing to smart electric vehicle chargers. Coupled with Echelon’s NES System, the leading smart grid solution in Europe and leading next-generation power-line-based smart grid solution in the U.S., the ECN 7000 series enables utilities to create smart grids that react in near-real time to remove stress from the grid, provide consumer-facing benefits, incorporate emerging smart grid and energy-aware homes and consumer devices, and incorporate almost any existing metering system to protect a utility’s existing investments.

Michael Anderson, Echelon’s senior vice president, utilities commented, “Service providers like Verizon Wireless build, maintain and secure wide-area communications networks better than anyone. That’s their job. Utilities build and maintain the grid. That’s their job. Marrying the two by using our COS-powered ECN equipped with a Verizon Wireless wide-area backhaul delivers fantastic performance and carrier-class reliability to the grid, and the highest value to consumers.”

More information about Echelon, the NES System, and COS and the ECN can be found at http://www.echelon.com/nes.

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is the world's leading open-standard energy control networking company. Echelon technologies connect more than 35 million homes, 300,000 buildings and 100 million devices to the smart grid, and help customers save 20% or more on their energy usage. With more than 20 years of experience in energy control, Echelon delivers a wide range of innovative solutions to commercial and electric utility customers. More information about Echelon can be found at http://www.echelon.com.

Echelon, LonWorks, and the Echelon logo are 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 or do not offer the expected benefits and savings; risks relating to the performance of Verizon Wireless’ communications network; 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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