Sun Microsystems and Echelon Collaborate to Connect Residential and Commercial Service Providers to Everyday Devices

Companies to Deploy Internet Automation Solution Using i.LON(tm) Internet Server and Java(tm) Technology Services

ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 19, 2000-- Sun Microsystems (NASDAQ: SUNW - news) and Echelon Corporation (NASDAQ: ELON - news) today announced they will collaborate to connect residential and commercial service providers to everyday devices via the Internet, finalizing a preliminary agreement announced in May. The companies plan to deploy an Internet automation solution using Echelon's i.LON(tm) Internet Server and Sun's Java(tm) technology services. Under the agreement announced today, Echelon and Sun will work together to integrate Sun's Java Embedded Server(tm) (JES) technology into future releases of the i.LON Internet Server, accelerating the market for value-added Java technology services in the building, industrial, and residential markets. Additionally, Sun will develop an add-on package for LONWORKS® connectivity for its JES technology product line to enable JES licensees to easily build gateways that connect to thousands of different LonWorks based products and offer a myriad of enhanced services.

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LonWorks technology enables everyday devices such as light switches, appliances, thermostats, air conditioners, pumps, motors, and valves to be made ``smart'' and to communicate with each other and across the Internet to improve the way we work and live. Millions of LonWorks devices are already in use worldwide in buildings, factories, trains, homes, planes, and hundreds of other applications. The i.LON Internet Server, a Cisco NetWorks(tm) certified product, enables the everyday devices networked with LonWorks technology to be managed, monitored, controlled, diagnosed, and updated over the Internet.

By embedding JES technology into future i.LON Servers, Echelon will enable the delivery of Java technology-based services to any of these everyday devices, creating new revenue opportunities for services providers and new ways for businesses to use information gathered from devices embedded in their buildings and plants to lower cost, improve quality, and increase efficiency. When used in commercial buildings, for example, services such as facility management tenant management, and energy optimization could be accomplished over the Internet via the i.LON Server. Moreover, these services could be dynamically updated, replaced, or removed as the needs of building occupants and owners change over time.

``Our partnership with Sun helps bring Internet connectivity to millions of everyday devices installed in homes, buildings, factories and other applications around the world,'' said Jeff Lund, Echelon's vice president of business development and corporate marketing. ``Through the results of the agreement we have announced today, users of our i.LON Server products as well as Sun's JES technology licensees will be able to develop and deploy Java technology-based services to improve the way people work and live.''

``Sun and Echelon are working together to deliver an innovative technology solution to the automation industry,'' said Curtis Sasaki, director, product marketing, Sun's Consumer Technologies. ``With the JES 2.0 technology powering i.LON 2000 gateways, Sun and Echelon are giving service providers the platform they need to develop and deploy next-generation services to everyday devices.''

As part of the agreement, Sun will develop an add-on package for LONWORKS connectivity for its JES technology product line and will ship the LONWORKS solution with JES technology-related products. By offering LonWorks connectivity to its JES licensees, Sun enables its customers to quickly and easily build products and services that connect with one of the largest installed bases of smart devices in the world. For example, a residential gateway based on JES software with a LonWorks connection could provide value-added services such as energy management and security monitoring by communicating over a home's existing power lines to LonWorks energy and security devices. Or, the residential gateway could recognize when a LonWorks based home appliance is plugged into a wall outlet and download a Java technology-based appliance monitoring and repair service on demand.

The Java Embedded Server 2.0 product, a small footprint framework running in the residential gateway, gives service providers the ability to deliver network services to remote devices in the home or commercial environments. JES 2.0 is designed to be fully compliant with the Open Services Gateway Initiative (OSGi) 1.0 specification and to pass the OSGi 1.0 compatibility test suite, thus ensuring interoperability with all OSGi compliant applications. OSGi is a leading industry standard for delivery of network-based services. To simplify and expedite the development process for services, Java Embedded Server 2.0 is bundled with a comprehensive tool set including a customized version of the Forte for Java Community Edition, an integrated development environment.

About Echelon Corporation

Echelon Corporation is the world leader in networking everyday devices. The company offers a comprehensive line of hardware and software products for automating building, home, industrial, transportation, and utility applications using LonWorks networks, an international, cross-industry, open standard for interoperable device networks. Echelon is Bringing the Internet to Life(tm) by linking the millions of everyday devices connected with LonWorks networks to the Internet.

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

Echelon's LONWORLD2000(tm) Conference and Exhibition is designed to help end-users, integrators, service providers, and manufacturers learn how to use the LonWorks system in their business. Taking place through today (October 19, 2000) at the Orange County Convention Center in Orlando, Florida, LONWORLD2000 features a series of forums, classes and presentations along with an exhibition of products and services covering the home/utility, building, industrial, and transportation markets.

About Sun Microsystems

Since its inception in 1982, a singular vision -- The Network Is The Computer(tm) -- has propelled Sun Microsystems, Inc. to its position as a leading provider of industrial-strength hardware, software and services that power the Internet and allow companies worldwide to dot-com their businesses. With $15.7 billion in annual revenues, Sun can be found in more than 170 countries and on the World Wide Web at http://sun.com.

Note to Editors: Sun, the Sun logo, Sun Microsystems, Java, JES and The Network Is The Computer are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. Echelon, LonWorks, Digital Home, LonMark®, the LonMark logo, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. LONWORLD2000, i.LON(tm) and Bringing the Internet to Life are trademarks of Echelon Corporation. Other marks belong to their respective holders.

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.