Ken Oshman,
Chairman & CEO,
Echelon
 
October 9, 2009 - Echelon Corporation (NASDAQ: ELON) today announced that Eaton Corporation has become a value-added reseller of Echelon’s Networked Energy Services (NES) System and that Eaton will incorporate its home automation product line for energy management, enhanced comfort and safety with the NES System. The agreement will focus on utilities and electricity providers in Europe, the Middle East and Africa (EMEA). The announcement was made today at the Metering Europe event in Barcelona, Spain.

The European Union (EU) recently announced a goal to increase energy efficiency by 20 percent by 2020, and many countries have announced obligatory adoption of advanced metering systems in order to meet the goal. Echelon and Eaton’s collaboration will provide a complete solution to extend the smart grid into homes and help meet these regulations.

Echelon recently announced new products and a series of enhancements to its Networked Energy Services (NES) System. The newest generation of Echelon’s smart meters includes a Multipurpose Expansion Port (MEP) interface that can enable communication with Eaton’s home automation product line over a wireless radio frequency (RF) connection.

As a result, actual energy consumption can be presented in clear and concise terms. The end user will be able to regulate consumption in real time and see a clear record of energy use to enable informed energy consumption decisions. The MEP port can also enable utilities and electricity suppliers to communicate with homes to enable demand response applications to help reduce peak loads.

“Eaton and Echelon share a vision of the smart grid that encompasses everything from generation to distribution to consumption. We are making this vision a reality with our new combined solutions by delivering improved comfort, safety and energy management, assuring invaluable energy savings linked with peace of mind,” said Günter Idinger, senior vice president and general manager of Eaton’s Electrical Power Distribution Components Division in EMEA.

“We are excited to partner with Eaton to enable them to offer a complete energy management solution that adds intelligence to the grid and extends it into the home,” said Ken Oshman, Echelon’s chairman and chief executive officer. “This collaboration exemplifies the flexibility of the NES System, and the innovation of companies like Eaton, who are making a difference in reducing energy consumption worldwide.”

The NES advanced metering infrastructure consists of a family of highly integrated, advanced electronic electricity meters accessed via a Web services based network operating system over an IP networking infrastructure. Much more than a simple AMI system focused on billing related services, the NES System provides utilities with a wealth of information about the status, operation and health of the grid that enables them to reduce operating costs while increasing service quality.

Echelon’s NES technology is used by utilities worldwide in Austria, Denmark, Finland, Germany, Italy, The Netherlands, Russia, Sweden, Switzerland, the United States, and other countries.

For more information regarding Echelon’s NES System visit www.echelon.com/nes.