Echelon and Microsoft Demonstrate the Networked Home at WinHEC 99

LOS ANGELES (April 7) BUSINESS WIRE -April 7, 1999--Echelon Corporation (NASDAQ:ELON) and Microsoft Corporation (NASDAQ:MSFT) today demonstrated the seamless integration of LONWORKS(R) networks and the Universal Plug and Play initiative to deliver networked home control and automation solutions.

The demonstration at the Windows Hardware Engineering Conference was part of a multi-vendor showcase and gave the attendees a glimpse of what is possible in the home network market with open, interoperable standards such as the LONWORKS system and Universal Plug and Play.

In the demonstration, a home PC running the Microsoft Windows 98 operating system and Echelon Corporation's LNS(tm) network operating system used an LNS Universal Plug and Play proxy to interact with a LONWORKS control network containing switches and load controllers from Leviton Manufacturing, a multi-function temperature, occupancy and ambient light level sensor from Hubbell Wiring Devices, and a WattNode power and energy monitor from Continental Control Systems.

This seamless connectivity enables complete access to any piece of information in any device and provides the basis for a host of value-added electronic services to be delivered into homes. For example, in the demonstration, the home's energy usage was graphed in real time in a web browser, allowing the home owners to adjust energy consumption to lower their utility bill.

"Echelon and the LONWORKS system are known around the world for networking intelligent devices in homes, buildings, factories, trains and other environments," said Alec Saunders, group planning manager, Productivity Appliances Group, Microsoft Corp. "By providing a Universal Plug and Play proxy on top of the LNS network operating system, millions of existing LONWORKS control devices can tap into Universal Plug and Play technology without having to add any incremental cost or complexity to the control devices themselves."

"Echelon is thrilled to be a part of the Universal Plug and Play initiative. The home networking market needs companies like Microsoft to spearhead the effort for interoperable products and solutions. Everybody benefits from products and systems from different manufacturers that can work together seamlessly and intelligently," said Bea Yormark, Vice President of Marketing and Sales at Echelon. 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 and LonMaker are trademarks of Echelon Corporation. All other trademarks mentioned in this document are the property 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, development of markets for Echelon's products and services 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.

CONTACT:
Press Contacts: Echelon Corp.
Maureen Rathjens, 650/855-7402 mrathjens@echelon.com

or Copithorne & Bellows Public Relations
Michelle Dube, 408/571-2307 michelle.dube@cbpr.com  

or Investor Relations Contact:
Echelon Corp. Chris Stanfield, 650/855-7400