CISCO SYSTEMS AND ECHELON CORPORATION TEAM TO INTEGRATE CONTROL SYSTEMS WITH IP NETWORKS

San Jose, California –– January 20, 1999 — Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, and Echelon Corporation (NASDAQ: ELON), a worldwide leader in networking for control, today announced that Echelon has joined the Cisco NetWorks Program.

As a member of the Cisco NetWorks Program, Echelon will create a new family of Internet Protocol (IP) to LonWorks^® connectivity products. This agreement is the next step in the companies’ development of standards and technologies for enterprise-wide integration of control and data networks in commercial buildings, factories, utilities, homes and other areas. By connecting control and data networks, businesses will be able to lower costs and increase efficiency.

The Cisco NetWorks Program was created to accelerate the global availability of a new generation of low-cost, easy-to-use Internet devices that can transparently plug into any IP network. Echelon’s internationally recognized LonWorks system provides a standard for integrating intelligent devices into network solutions. The products developed under the agreement announced today will extend the power of the Internet from computers to the devices, allowing people to access, monitor and control almost any device anytime, from anywhere.

"The goal of the Cisco NetWorks Program is to expand and accelerate the development and deployment of network access devices to our customers," said Robba Benjamin, vice president of Cisco’s Consumer Line of Business. "Echelon has a leading open standard for interoperable control networks, and connectivity to Echelon’s LonWorks system will further our vision of a single data, voice, video and control network."

"Cisco has assembled an outstanding set of partners in their Cisco NetWorks Program creating cable modems, set-top boxes, Voice-over-IP and other Internet connectivity devices. We are eager to work with Cisco to create exciting products that integrate LonWorks and IP networks," said Ken Oshman, president and CEO of Echelon Corporation. "Echelon is known around the world for networking intelligent devices in homes, buildings, factories, trains and other environments. Imagine the cost benefits and growth opportunities of being able to access, monitor and control any device within your network through the Internet from anywhere in the world. Echelon and Cisco intend to make this possible."

Under the terms of the agreement, Cisco will provide Echelon with engineering support, certification and Cisco NetWorks branding, as well as co-marketing and sales support.

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.

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.