Echelon Control Technology Selected to Monitor Safety on Next Generation


LonWorks® Networking Platform Clear Choice to Provide Safety Control
Infrastructure for Country's Primary Transportation Method

(San Jose, CA - March 9, 2006) - Echelon Corporation (NASDAQ: ELON), a
global networking company providing technology and solutions for
controls, smart metering, and energy and environment management,
announced today that the China Academy of Rail Sciences and Sifang
Rolling Stock Research Institute have standardized on Echelon's
LonWorks® networking platform for safety monitoring on next generation
passenger trains - effectively making it a de facto standard for high
speed rail travel in the world's largest passenger rail transport
market. Echelon's LonWorks networking platform will monitor safety
features on passenger trains including brakes, doors and power supply.
Since 2002, China's Ministry of Railways has recommended Echelon's
LonWorks platform as one of the approved control network standards for
passenger trains.

"It is a top priority to improve the safety and efficiency of public
transportation systems in China," said Ms. Xiuwei Guo, senior engineer
of research and development for the Sifang Rolling Stock Research
Institute. "Echelon's proven LonWorks technology provides us with a
reliable and flexible platform that is cost-effective and allows Chinese
original equipment manufacturers (OEMs) to modify and expand on their
core development. This will help drive the quick adoption of LonWorks
technology."

As the Chinese economy continues to open, fast, efficient, and safe
travel between the country's largest cities has been identified as a
bottleneck for economic growth. China's Ministry of Rail has mandated a
speed increase on all next generation trains, from 120 km/h to 160 km/h
and higher. This increase will improve the productivity and efficiency
of the Chinese rail system, which remains the country's primary
transportation method; however, with the increase in speed comes the
need for improved safety monitoring.

With its open architecture and standards-based protocol, IEEE
1437L, Echelon's LonWorks platform provides a seamless communications
infrastructure between all the vehicle networks, consolidating all
monitoring functions including braking, speed sensors, doors, HVAC, and
speed limitations. This in turn helps to make train travel more
reliable, safer, and easier to maintain and operate. Both China Academy
of Rail Sciences and Sifang Rolling Stock Research Institute have
installed a LonWorks based safety monitoring solution in over 1,000
train cars and China is building on average 1,000 new cars per year.

"We are very pleased that a LonWorks based-solution has been
chosen for China's next generation passenger trains," said Anders
Axelsson, Echelon's senior vice president of sales and marketing.
"Echelon has long provided control systems for many of the world's
largest passenger rail mass transit systems, and we look forward to the
China's Ministry of Rail utilizing our technology to manage its new
high-speed trains and facilitate future expansion."

The underlying protocol of the LonWorks platform, also known as IEEE
1473L, is in use today in New York City subway cars, Helsinki Light
Rail, and other transit systems, and is the required communications
platform for the Chicago Transit Authority's next generation subway
cars. The American Association of Railroads utilizes the protocol and a
related power line signaling technology in its electro-pneumatic braking
system standard. Additionally, the LonWorks networking platform is used
extensively in train stations, way stations, and for remote monitoring
and control of track switching mechanisms in harsh environments.

About China Academy of Railway Sciences
Founded in 1950, China Academy of Railway Science is a division of the
Chinese Ministry of Railway, and is engaged in a full range of rail and
transportation related research and development, production, sales and
marketing. China Academy of Railway Science also acts as a think tank
for transportation policy and helps set the technology standard for the
Chinese railway industry. China Academy of Railway Science is based in
Beijing, China.

Further information regarding China Academy of Railway Science can be
found at rail.com.cn.

About Sifang Rolling Stock Research Institute
Sifang Rolling Stock Research Institute is a division of China Northern
Locomotive and Rolling Stock Industrial Group, one of the two largest
rail car manufacturers in China. Sifang is a major research institute
and OEM for China's railway industry and is based in Qingdao, China.
Further information regarding Sifang can be found at
http://www.srsri.com.

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is a pioneer and world leader
in control networking - networks that connect machines and other
electronic devices - for the purpose of sensing, monitoring and
controlling the world around us. Echelon's LonWorks platform for control
networking was released in 1990 and has become a worldwide standard in
the building, industrial, transportation, and home automation markets.
Launched in 2003, Echelon's Networked Energy Services system is an open,
extensible, advanced metering infrastructure that can bring benefits to
every aspect of a utility's operation, from metering and customer
services to distribution operations and value-added business. In 2005
Echelon released the world's first embedded control network
infrastructure, the PyxosTM platform, extending the benefits of
networking inside machines to the sensors and actuators that make them
function.

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

###

Echelon, LonWorks and the Echelon logo are registered trademarks of
Echelon Corporation registered in the United States and other countries.
Pyxos is a trademark of Echelon Corporation 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 the timing and level of customer orders and demand for Echelon
products and services in rail transportation and other applications in
China and elsewhere; risks that liability may accrue as Echelon products
and services are used in these rail transportation applications; risks
associated with the any changes that may occur in China regarding rail
transportation, safety or other policies, and acceptance by local,
regional and national Chinese government agencies of LonWorks based
solutions; the growth of the LonWorks industry; 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 Contacts
Julia O'Shaughnessy
Echelon
(408) 938-5357
joshaughnessy@echelon.com

Mike Barash
Atomic Public Relations
(415) 402-0230
mike@atomicpr.com

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