Echelon Receives Home Automation Award

Echelon Corporation, a global networking company providing technology and solutions for controls, announced today that has received the first annual Net-atHome™ award for its continued commitment to the advancement of the home automation industry.

(San Jose, CA - September 27, 2006) - Echelon Corporation (NASDAQ: ELON), a global networking company providing technology and solutions for controls, smart metering, and energy and environment management, announced today that has received the first annual Net -atHome™ award for its continued commitment to the advancement of the home automation industry. Presented today by Homega Research at the 9th annual Net -atHome event in Cannes, France, the award recognizes contributions to the worldwide connected home markets made by particular companies or people. Mark Ossel, vice president of Echelon, accepted the award on Echelon's behalf.


'We chose Echelon for the inaugural Net -atHome award because of its constant determination to offer to the worldwide market innovative solutions suited to consumer's needs,' said Roger Torrenti, CEO of Homega Research. 'This determination combined with a philosophy and actions promoting openness and cooperation with the greatest number of players in the field, makes Echelon the ideal recipient of our inaugural award.'

Homega Research defines three categories for the Net -atHome 2006 Award -companies, individuals and journalists -and is presented as part of the Net -atHome event. The event fosters cooperation between industry players and focuses on the home automation market, residential energy management, and developments in technology, standards, and regulations. Net -atHome is the only event in Europe that covers the entire connected home domain and is considered by industry specialists and researchers as an essential meeting point to discuss products and services based on home communication infrastructures.

'Echelon is committed to creating an open, international market for home automation at both the product and the network levels,' said Anders Axelsson, Echelon's senior vice -president of sales and marketing. 'Echelon's technology facilitates the creation of products that meet key consumer needs such as 'plug and play' and 'no new wires' installation, and provides a platform for service providers to easily deliver valuable services to homeowners. We are committed to working with industry groups and standards bodies to establish technology standards that foster open, competitive markets so homeowners can confidently purchase automation products and services from connected dishwashers to electricity.'

Echelon's LonWorks® technology is embedded into consumer products for the home, enabling services such as energy management, security monitoring, and remote control and diagnostics. A new generation of smart appliances that are more energy efficient and easier to use and maintain are being created based on the technology. Leading companies such as Simon in Spain, Samsung Electronics in Korea, and a host of others, use the platform as the foundation for their control systems. The LonWorks platform is supported by leading standards organizations in the United States, Europe and Asia. As an open standard it can connect to other home networking standards such as CECED, UPnP™, OSGi™, HANA™, IGRS and Ethernet.

About Homega Research and the Net -atHome Event
The Net -atHome events are organized annually and produced by Homega Research, a division of Sigma Consultants, one of the leading European providers of information and market support services. Created in 2002, Homega Research specializes in technologies and services for the home and offers its clients (manufacturers, service companies, research organizations, authorities, etc.) a wide range of technology and marketing support services (including market research, technology assessment, and the organization of business and cooperation events).

Homega's client list includes most major manufacturers, service companies and research institutions active in the field of the connected home worldwide. Homega Research strives to continually achieve an exceptional level of quality in all areas as well as a real attention to detail concerning content and structure of the Net -atHome conference, organization and visibility of the exhibition, visibility of the sponsors, and networking opportunities.

Further information regarding Homega Research and the Net -atHome event can be found at http://www.homega -research.com and http://www.net -athome.com respectively.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is a pioneer and world leader in control networking - networks that connect machines and other electronic devices - for the purpose of sensing, monitoring and controlling the world around us. Echelon's LonWorks platform for control networking was released in 1990 and has become a worldwide standard in the building, industrial, transportation, and home automation markets. Launched in 2003, Echelon's Networked Energy Services system is an open, extensible, advanced metering infrastructure that can bring benefits to every aspect of a utility's operation, from metering and customer services to distribution operations and value -added business. In 2005 Echelon released the world's first embedded control network infrastructure, the Pyxos platform, extending the benefits of networking inside machines to the sensors and actuators that make them function.

Echelon is based in San Jose, California, with international offices in China, France, Germany, Italy, Hong Kong, Japan, Korea, The Netherlands, and the United Kingdom. Further information regarding Echelon can be found at http://www.echelon.com.

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Echelon, LonWorks, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Pyxos is a trademark of Echelon Corporation in the United States and other countries. Other product or service names mentioned herein are the trademarks 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 the with market acceptance of Echelon's technology and products; risks that aspects of the technology and products will not performed and designed, risks associated with uncertainties pertaining to the timing and level of customer orders and demand for Echelon products and services, and the growth of the LonWorks industry generally; 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 Information

Press Contact:

Julia O'Shaughnessy
Echelon Corporation
(408) 938 -5357
joshaughnessy@echelon.com

Mike Barash
Atomic Public Relations
+1 (415) 402 -0230
mike@atomicpr.com

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