Merloni Elettrodomestici ``Ariston Digital'' Uses Echelon's LONWORKS System to Bring Internet Control to Home Appliances

Business Wire - March 15, 1999 09:32 PALO ALTO, Calif.

European Leader Unveils New Ariston Digital Line of Smart Digital Home Appliances

Echelon Corporation (NASDAQ: ELON) announced today that Italian multinational Merloni Elettrodomestici, the leading European multinational home appliance manufacturer, premiered a new group of home products that use Echelon's LONWORKS(R) system to communicate with one another in the home and through the Internet to the outside world. The recent announcement of Ariston Digital at Domotechnica, Europe's premier domestic home appliance trade show, marks the first commercial availability of "smart" appliances that work together to be easier to use, more reliable, and lower cost to own. The Ariston Digital family includes refrigerators, dishwashers, washing machines, and other home appliances as well as a multimedia, interactive, touch-screen Home Smart Monitor that monitors the performance of all domestic appliances and facilitates access to the Internet.

The use of LONWORKS technology makes the Ariston Digital products extremely easy to install and use (plug & play). No complex network configuration is required, and no new wires need to be installed. To connect a new appliance to the network, the homeowner just plugs it in. The intelligence is distributed in each appliance, eliminating the need for a central computer to process the data and control the appliances.

All Ariston Digital appliances communicate with each other by exchanging information through the home's power mains using Echelon's power line communications transceivers, eliminating the need for new wires. Embedded intelligence in each appliance enables each device to be constantly "aware" of how much power is being consumed in the home and to regulate the consumption accordingly to avoid the risk of a circuit overload or blackout. Should a circuit overload threaten, the appliances are able to decide which one should be given priority, for example, the washing machine over the oven. This built-in intelligence, and new sensors developed by Merloni Elettrodomestici, also allow each appliance to supply better performance with lower consumption of resources such as power and water. For example, an appliance can lower power costs by shifting its electricity usage to off-peak, lower-cost hours.

Ariston Digital appliances communicate to the outside world via the Internet. Each appliance can regularly transmit information to the Assistance Center on its running conditions or to indicate possible faults, enabling the Assistance Center to act more rapidly and to provide a more accurate diagnosis of the problem. For example, in case of a prolonged power outage, the transmission of an alarm can safeguard the food stored in the freezer compartment. Each appliance also maintains and analyzes important status information (washing or cooking cycles, power consumption, repairs, etc.) to optimize its own performance and to perform proactive troubleshooting. This information can also be used by the service center to perform remote diagnostics for any possible repairs quickly and accurately.

Along with instant Internet access, Merloni's Home Smart Monitor allows the homeowner to monitor, control, and obtain maintenance and power consumption statistics from Ariston Digital appliances and other LONWORKS based digital appliances. It also provides access to the Ariston Channel web site, where homeowners can access on-line services for all domestic appliances, including household tips, new recipes, and on-line assistance.

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, Calif. 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.

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

Copithorne & Bellows Public Relations
Michelle Hanson,
408/571-2304
michelle.hanson@cbpr.com