Leading Meter Manufacturers in Asia Adopt Echelon's Control Operating System and the OSGP Standard New Sub-System Offerings Enable Manufacturers to Rapidly, and Cost-Effectively Offer a Comprehensive Smart Grid Solution to Millions of Utility Customers

SAN JOSE, Calif., May 8, 2012 /PRNewswire/ -- Echelon Corporation (NASDAQ: ELON) today introduced a new Echelon Control Operating System (COS)-enabled control module that, when coupled with Echelon's data concentrator and system software, enables electricity meter manufacturers to quickly and cost-effectively offer a comprehensive solution for automated metering and low voltage grid optimization. The new CPM 0600 control point module implements the Open Smart Grid Protocol (OSGP) and transforms the manufacturer's electronic meter into a smart meter plus grid sensor that leverages Echelon's proven, open standard, and multi-application energy control networking platform. The company also announced that leading meter makers in Asia, including Mitsubishi Electric Automation (Thailand) Co., Ltd., Korea's VIDCOM, Malaysia's Comintel, and China's Holley Metering, will offer solutions based on Echelon's platform.

In addition to enabling these meter manufacturers to address their home markets with the latest technology, Echelon's CPM 0600 also provides an opportunity to offer OSGP compatible meters to utilities in other markets that are looking for multiple sources of interoperable meters and grid devices. The new CPM 0600 for smart meters complements the Echelon CPM 6000, which transforms other devices, such as solar micro-inverters, load control modules, power quality sensors and electric vehicle chargers, into OSGP smart grid devices that seamlessly plug into Echelon's three-tier energy control networking platform.

"Regional meter makers in Asia are a powerful force in their home markets, often having long standing relationships with the local utilities. Regional meter makers in several other emerging markets, such as Central and Eastern Europe, and the Middle East and Africa, also hold trusted partnerships with their utilities," said Bob Gohn, vice president at Pike Research, a leading market research firm focusing on global clean technology. Pike Research estimates that 162 million smart meters will be installed in these markets between 2012 and 2020.

"The OSGP-compliant module brings us the best of both worlds – we are able to produce our own smart meters based on the leading OSGP protocol, but we also get the benefits of plugging our meters into Echelon's leading end-to-end smart metering and grid optimization system," said Jun Young Lee, CEO of VIDCOM Co., Ltd., an innovative meter manufacturer headquartered in South Korea, serving utilities in South East Asia. "We see rapidly growing interest in smart metering systems across the countries we serve; and with the new OSGP module, we save years of effort and are able to enter the market immediately and compete aggressively with a market-leading system."

"Working closely with Echelon, we've already secured our first pilot with Tanaga Nasional Berhad Research, which is the leading utility in Malaysia serving more than eight million customers," said Lim Keng Hockat, CEO of Comintel Sdn Bhd, a leading system integrator for utilities in Malaysia and Indonesia. "The value of Echelon's sub-system offering with the CPM 0600 is real and has proven fruitful for us."

"Echelon gives us more than a control module. They allow our meters to plug into an end-to-end system that allows us to offer advanced metering capabilities," said Jin Meixing, chairman of Holley Metering, one of the top three metering companies in China. "The benefits of building upon OSGP will save us a tremendous amount of time in our smart meter development efforts and will quickly open up new opportunities for us in other markets where customers are seeking multiple OSGP meter vendors."

"A key component of our strategy is to extend the reach of our energy control networking platform by partnering with leading manufacturers in high-growth geographies," said Ron Sege, chairman and CEO of Echelon. "Building on the successes of our partnerships with ELO in Brazil and Holley Metering in China, the new OSGP-compliant module is the latest in a series of sub-systems designed to serve the needs of meter manufacturers in high-growth geographies and accelerate both their growth and ours, as utilities move to smart metering and grid systems."

About Echelon's Energy Control Networking Platform

Echelon's energy control networking platform is a three-tiered configuration of devices, control nodes, and enterprise software from Echelon and its partners that enables multiple energy management applications at the edge of the grid. Devices communicate using various device networking standards such as LonWorks®, Open Smart Grid Protocol (OSGP), Device Language Message Specification (DLMS™), Modbus® and others. Control nodes are responsible for running applications that act on the collected data locally, and for mapping these device protocols into the Web/IT domain so that enterprise applications can work on big data when required. Unlike data networking, control networking requires a semantic understanding of device control protocols across all tiers so that monitoring and decision-making can be distributed and decisions made at all three tiers as appropriate for maximum response time, reliability and resiliency. The software that runs across the tiers of the control networking platform to enable such distributed intelligence and control is Echelon's Control Operating System (COS). Partners can plug into, customize or extend the energy control networking platform by integrating their devices and applications with COS.

About Open Smart Grid Protocol (OSGP)

Built on open ISO/IEC and IEEE standards, the Open Smart Grid Protocol (OSGP) is a device control networking protocol published by the European Telecommunications Standards Institute (ETSI) for smart grid applications. OSGP specifies a media independent control layer for secure and reliable communication between grid devices, such as meters and control nodes (e.g. data concentrators). OSGP enables independent implementation of interoperable meters and other smart grid devices from multiple vendors on the same network, and helps the utility lower cost and enhance functionality by enabling multiple smart device devices and applications to share a common infrastructure while avoiding vendor lock-in. Utilities can then concentrate on building applications that reduce peak loads, balance the grid, reduce losses, identify impending outages, etc. instead of focusing on just the meter and its connectivity protocol. The Energy Service Network Association (ESNA), a non-profit corporation composed of utilities, manufacturers, and integrators, is responsible for publishing, maintaining, and certifying devices compatible with the OSGP specification.

Availability

The Echelon CPM 0600 is available for volume delivery in 2H 2012. More sales information can be obtained by contacting: sales@echelon.com.

Echelon at Metering Asia 2012

Come visit Echelon at the Metering, Billing/CRM Asia Conference in Bangkok, Thailand on May 8-9, 2012 in booth 2.18 in the Convention Centre A1, Level 22. Echelon's Jeff Lund, vice president of Business Development, will speak on "Reducing Development Time and Risk in Smart Meter Design." Echelon utility customers will also speak on smart metering. For more details on Metering, Billing/CRM Asia, please visit: http://www.metering-asia.com/.

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is an energy control networking company, with the world's most widely deployed proven, open standard, multi-application platform, selling complete systems and embedded sub-systems for smart grid, smart city and smart building applications. Our platform is embedded in more than 100 million devices, 35 million homes, and 300,000 buildings and powers energy savings applications for smart grids, smart cities and smart buildings. We help our customers reduce operational costs, enhance satisfaction and safety, grow revenues and prepare for a dynamic future. More information about Echelon can be found at http://www.echelon.com.

Echelon and the Echelon logo are registered trademarks of Echelon Corporation registered 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 with uncertainties pertaining to market acceptance of Echelon's control point modules and other products in Asia and elsewhere and the timing and level of customer orders; risks relating to the timing of availability of Echelon's control point modules and other products; risks that Echelon offerings do not perform as designed or provide the expected energy savings targets, cost targets, or other benefits, and that liability may accrue as a result; 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.

Press Contact:
Amy Lee
Echelon Corporation
(408) 790-3019
alee@echelon.com                               

SOURCE Echelon Corporation



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