ELON + AT&T :
  SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 11, 2000--Echelon Corporation (Nasdaq:ELON) announced that it has signed a joint project agreement with AT&T (NYSE:T) that will lead to global networking solutions for everyday devices networked with Echelon's LonWorks(R) technology. Under the joint project agreement, existing LonWorks device networks will be able to dial in to AT&T's global remote access network and be connected to the user's LNS(TM) based applications that operate at client locations or in the network itself. Direct access from LonWorks networks to AT&T's global network will allow users to monitor and control their LonWorks networked devices with a local phone call from virtually anywhere in the world. 
  The companies intend to provide an end-to-end solution for globally managed access to information collected from everyday devices. This opens the door for energy service companies, appliance manufacturers, and consumer electronics companies to offer their customers a new set of performance-enhancing services. These services include remote product diagnosis, product updates, event/alarm logging, maintenance scheduling, data collection, management and storage, and monitoring and control of LonWorks devices. 
  "Employing AT&T's comprehensive solutions to manage the communications with Echelon's LNS and serial LonTalk(R) adapters will help provide our customers with the high reliability, scalability, and security that are so vital today," said Ken Oshman, CEO of Echelon Corporation. "Worldwide remote access and services from AT&T complements Echelon's i.LON(TM) 1000 Internet Server capabilities; together, these offer a comprehensive solution to our service providers to reach their customer base." 
  AT&T will also offer services to support the management of LonWorks networks by interfacing with Echelon's LNS network operating system and hosting LNS and user applications. 
  "An alliance with Echelon provides us strategic access to one of the largest installed bases of smart devices in the world-millions of everyday devices that today control industrial processes, building operations and transportation systems," said L. Scott Perry, AT&T Business Services vice president for strategy and business development. "It enables companies to use AT&T services to collect, analyze, and integrate information from devices into their strategic planning and mission-critical support systems, and to enhance the reliability and management of those systems." 
  AT&T's global remote access network enables companies to centrally manage, monitor and control devices from virtually anywhere in the world, regardless of where the devices are installed. AT&T's global remote access network includes more than 2,000 points of presence around the world. The global network can provide remote access for diagnostics, product updates, device management, status monitoring and control for LonWorks devices deployed worldwide. It will also give manufacturers automated access to the data from devices and products that can facilitate registration, trend analysis, defect information and other such functions done manually today. 
  "Adding AT&T's communication backbone to Echelon's LonWorks device networks provides the finishing touch necessary to bring all LonWorks networks into the Internet space," said Tim Bajarin, president of Creative Strategies, Inc., a leading high-tech consulting firm. "This is a smart move on the parts of both AT&T and Echelon; AT&T is adding value to an existing asset, and Echelon is increasing the global reach of its local device networks. This combination should greatly benefit both the companies and their customers." 
  Echelon's LonWorks networks encompass all of the devices within a location via low cost powerline, free topology twisted pair wire, Ethernet, or a host of other media. The LonWorks devices can be anything from a dishwasher, to a semiconductor wafer-processing machine, to a central heating system, to the brakes on a subway train. 
  "Invensys has already installed hundreds of thousands of smart LonWorks devices to control commercial buildings," said John Sharood, vice president of Invensys Network Systems. "With new AT&T services, combined with Echelon's low-cost powerline technology, we look forward to expanding our use of LonWorks networks into energy metering, appliance control, and integrated home control applications." 
  "We have over 13,000 Onan generators, as well as switchgear and transfer switches that use LonWorks to monitor and control their operations. We use Echelon's SLTA serial LonTalk adapter and LNS network operating system to provide remote connectivity, monitoring, control, and diagnostics," said Dan Erickson, product manager of PowerCommand Networks and Switchgear, Cummins Power Generation. "With AT&T/ LonWorks connectivity services, we will be able to offer our customers improved capability, greater reliability, enhanced security, and lower costs." 
  Echelon's SLTA/2 and SLTA-10 products will provide dial-in access to the 2,000 local access points of AT&T's global network. Over 100 Echelon certified network integrators design device network solutions using over 1,500 LonWorks networked products. 
  AT&T is a gold sponsor at Echelon's LonWorld2000(TM) Conference and Exhibition and will be exhibiting in booth numbers 102 and 104. More information can be found at lonworld2000.com. 
  About AT&T 
  AT&T Corp. ( www.att.com ) is among the world's premier voice, video and data communications companies. With annual revenues of more than $62 billion and 160,000 employees, AT&T provides services to customers worldwide. 
  Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and has one of the largest digital wireless networks in North America. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and networking-integration to large businesses. Through its recent cable acquisitions, AT&T delivers broadband video, voice and data services to customers throughout the United States. Internationally, Concert, the AT&T/BT Global Venture, serves the communications needs of multinational companies and international carriers worldwide. 
  About Echelon Corporation 
  Echelon Corporation (Nasdaq:ELON) 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 echelon.com. Echelon's LonWorld2000 Conference and Exhibition is designed to help end-users, integrators, service providers, and manufacturers learn how to use the LonWorks system in their business. The conference will take place on October 18-19 at the Orange County Convention Center in Orlando, Florida and 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. Sponsorship, registration and exhibition information about LonWorld2000 can be found at lonworld2000.com. 
  Echelon, LonTalk, LonWorks, LonMark(R), the LonMark logo, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. LNS, i.LON, LonWorld2000, 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. 
      CONTACT: Echelon Corporation                                    Lyn Balistreri, 408/938-5202               lbalistreri@echelon.com |