Major Utility in Victoria, Australia to Trial Echelon's Advanced Metering SystemFirst Step in Government Program to Replace 2.4 Million Meters State-Wide(San Jose, CA - April 18, 2007) - Echelon Corporation (NASDAQ: ELON) announced today that Australian electricity distributor CitiPower has selected Echelon’s Networked Energy Services (NES) advanced metering system as part of the first phase of a government-mandated migration to advanced metering systems. The government in Victoria, Australia has initiated a program to deliver advanced metering infrastructure and "smart meters" to all Victorian electricity consumers beginning in 2008. Under the program, some 2.4 million new electricity meters are expected to be deployed over a four year period to help consumers in Victoria better manage their energy use by providing more detailed information about their consumption and the opportunities available to save money and reduce greenhouse gas emissions. "The government in Victoria and electricity distributors such as CitiPower are taking the first steps today towards defining the advanced metering infrastructure that will power Victoria through the 21st century," said Ken Oshman, chairman and CEO of Echelon Corporation. "While the scope of this 500 meter trial is small, we believe it provides Echelon a critical advantage in establishing our presence at this market inflection point. With a revenue-certified advanced meter already available for the Australian market, the opportunity to work with one of the leading utilities in the state, and the demonstrated success of large-scale deployments of the NES system elsewhere, we believe this trial can be a springboard for Echelon as Victoria moves from trials in 2007 to tenders and volume deployments in 2008 and beyond." The Victorian advanced metering infrastructure (AMI) project was established in March 2006 in response to a detailed study undertaken in 2005 to examine the costs and benefits that an advanced interval metering system could bring to Victorian consumers. The independently conducted, government-sponsored report found that such a system would bring significant benefits — so much so that it recommended an accelerated rollout of interval metering with advanced communications across Victoria. "The Australian market is rapidly moving to advanced metering systems to enable our customers to conserve energy and improve the environment while at the same time lowering our operating costs," said Shane Breheny, CitiPower’s CEO. "As we embark on this ambitious change, we are pleased to be working with Echelon and their field-proven NES system. We believe it has the potential to meet the new government requirements while delivering greater benefits to our customers and to ensure reliability and operational flexibility." About Echelon's NES System About Echelon Corporation ### Echelon, LonWorks, NES Powered by Echelon, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Networked Energy Services Powered by Echelon is a trademark of Echelon Corporation in the U.S. 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, including statements regarding the success of Echelon’s project with CitiPower, future expansion of the Victorian market for advanced metering products, and the acceptance of Echelon’s products in the market. Such statements may involve risks and uncertainties, including risks associated with the ability of the NES system and NES meters to perform as designed, potential production or shipment delays for NES meters and other components; the risk that the application of U.S. generally accepted accounting principles could significantly affect the method of calculating, and the timing of, NES revenues that Echelon expects to recognize under the trial; risks that the deployment and system integration activities with Echelon and other participants in the trial are not successful, do not meet their target dates, do not expand or gain momentum, cause Echelon to be liable for penalties or cause the utility to terminate the trial; the risk that the trial is challenged by third parties 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
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