NEW LNS™ 2.0 NETWORK OPERATING SYSTEM LINKS CONTROL NETWORK TOOLS TO THE INTERNET

Palo Alto, California -- March 18, 1999 - Echelon Corporation (NASDAQ: ELON), a leading provider of LONWORKS® control network solutions worldwide, today announced the availability of Release 2.0 of the LNS network operating system. This new release allows LNS tools that install, monitor, control, manage, and maintain control devices to transparently perform these services from anywhere in the world over any IP-based network, including the Internet. By providing remote connectivity to control networks in buildings, factories, transportation systems, homes, utilities, and other applications, LNS 2.0 allows control networks to be easily and inexpensively integrated into enterprise-wide facilities management, remote monitoring, ERP, and data mining systems.

New features in LNS 2.0 include:

• Internet (IP) clients. LONWORKS network tools that use the LNS ActiveX™ control can now run transparently over the Internet as well as over a LONWORKS network.
• Increased performance. Performance enhancements to key operations dramatically reduce start-up time and improve scalability for large networks with thousands of devices and connections.
• Enhanced network variable binder. New features virtually eliminate connection resource limitations when creating large or complex systems.
• Simplified redistribution. A new package and deployment wizard simplifies creation of applications that install the LNS network operating system as part of their setup process.
• File Transfer Protocol object. Integrated support for the standard LONWORKS File Transfer Protocol provides easy access to device data files such as recipes in semiconductor manufacturing equipment, security system access lists, and process monitoring data logs.
• Year 2000 compliant. All components of the LNS network operating system are Year 2000 compliant.

"With dozens of new customer-driven features and hundreds of performance and productivity enhancements, LNS 2.0 sets a new standard for open, interoperable, scalable LONWORKS control software," said Damian Inglin, Product Marketing Manager. "LNS 2.0 makes possible a new generation of web-enabled control applications for home automation, community monitoring, building integration, and industrial automation."

LNS 2.0 software development kits will begin shipping this month, with availability through Echelon's worldwide sales channel. For technical background, pricing, upgrade policy, and ordering information, please contact your Echelon sales representative or visit the LNS home page at www.echelon.com/lns. Special upgrade pricing is available until May 31, 1999.

About Echelon Corp. Echelon Corporation (NASDAQ: ELON) is the developer of LONWORKS networks, recognized internationally as a standard for interoperable control networks. With thousands of application developers and millions of devices installed worldwide, the LONWORKS system is a leading open, networked control solution for building and home automation, industrial, transportation, and public utility applications. Echelon offers a full range of off-the-shelf hardware and software products to support the development, installation and management of intelligent, open and interoperable control networks. Echelon is based in Palo Alto, California with international offices in China, France, Germany, Japan, Korea, The Netherlands and the United Kingdom. News and information are available at http://www.echelon.com.

Echelon, LONWORKS, and the Echelon logo are registered trademarks of Echelon Corporation registered in the U.S. and other countries. LNS is a trademark of Echelon Corporation. All other trademarks mentioned in this document are the property of their respective owners.