Press Contacts:

Maureen Rathjens
Echelon Corp.
(650) 855-7402
mrathjens@echelon.com

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

Palo Alto, California –– December 15, 1998 — Echelon Corporation announced today that the company will demonstrate Internet connectivity in Digital Home applications at David Coursey’s Digital Living Room Pavilion at the 1999 International Consumer Electronics Show (CES) in Las Vegas, January 7 – 10. Visitors to Echelon’s booth (#6543) can remotely access devices over the Internet in Echelon’s Palo Alto living room location to perform functions such as turning lights on and off, or raising and lowering a window blind. In addition, booth visitors can see products from different manufacturers that can be used to create integrated home systems.

Echelon’s networked living room demonstration is based on the company’s LonWorks® system, which is based on a recognized open standard (EIA-709) for integrated home control. In addition, the LonWorks Network Services (LNS) for Windows software toolkit provides a unified interface for developers to implement interoperable, Internet-friendly home control networks. Companies use LonWorks systems to build networks of intelligent devices and products from different manufacturers that can work together in a wide range of applications; these systems are designed to grow and expand with customers’ needs. Today, thousands of

LonWorks systems are installed in factories, buildings and homes worldwide. By extending the reach of the Internet to these control networks, people and businesses can access any point within a control network via the Internet at any time from anywhere in the world.

"This year’s CES is the perfect opportunity for Echelon to showcase how the LonWorks system provides consumers with the power to control their home devices over a network. Echelon is known for networking intelligent devices in homes, buildings, factories, trains, and other environments, and now, by linking the Internet to control networks, people and businesses gain access to information that was previously unobtainable" said Ken Oshman, President and CEO of Echelon Corporation. "The Internet has managed to bring people everywhere closer together. Now, with the LonWorks system, Internet connectivity can put people more directly in touch with their living environment remotely, from anywhere in the world.

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 .