CISCO'S JOHN CHAMBERS DISCUSSES THE INTERNET CONSUMER REVOLUTION AT CES USING DEMO BASED ON ECHELON'S LONWORKS TECHNOLOGY

Las Vegas, Nevada –– January 8, 1999 — Cisco Systems, Inc. President and CEO John Chambers discussed the biggest business consumer story of the 90s, the Internet Revolution, at the 1999 International Consumer Electronics Show (CES) in Las Vegas on January 8. In his keynote address, open to all CES attendees, Chambers talked about Cisco’s role in extending Internet innovation from business to the consumer market by demonstrating how consumer products and appliances can be remotely accessed over the Internet using Echelon’s LONWORKS control networks.

"The Internet really promises to connect everyone to everything," said John Chambers, president and CEO of Cisco Systems, Inc. "Eventually all data, voice and video services will be delivered over an open Internet network, changing telecommunications forever. Like the Industrial Revolution 200 years ago, the Internet will reshape the fortunes of companies, countries and people. Companies such as Echelon are poised to help drive this change with Cisco and extend the power of the Internet from business to the home, allowing people to access almost any consumer device anytime, anywhere."

The Cisco demonstration shows how a common browser can be used to interact with a number of off-the-shelf LonWorks enabled devices via the Internet. The control network allows common devices such as a wall switch, a wall dimmer, and a load controller from Leviton Manufacturing; a multi-function sensor with integrated motion, temperature, and light in a single device from Hubbell Inc.; and an automated window blind from Somfy to communicate with one another over two kinds of media – a common twisted pair network cable, and the existing home power mains wiring. The intelligent devices are able to communicate with one another based on an action, e.g., the motion sensor can tell the lights to turn on when it detects presence. By connecting the control network to the Internet, it is possible to monitor the presence of someone in the room, determine whether the house is too warm or too cold, or turn on the light to mimic the presence of someone at home, all from the comfort of your web browser from anywhere in the world."

CES attendees can also see another demonstration of Echelon’s LONWORKS control system and Internet connectivity in home automation applications by visiting the company’s booth (#6551), located in David Coursey’s Digital Living Room Pavilion on the main showroom floor. Booth visitors 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.

"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. 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. "Imagine a world where you can use an Internet browser to set the temperature in your home before you leave the office; or receive an e-mail message notifying you that your children arrived home from school; or deactivate your security system to allow a workman access to your home."

About Cisco Systems

Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. News and information are available at http://www.cisco.com.

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.

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