Echelon Receives Worldwide Commitment from Honeywell for Its LONWORKS^® Systems

Honeywell Enters Into International Purchase Agreement with Echelon

PALO ALTO, Calif.- February 2, 2000 - Echelon Corporation (NASDAQ: ELON) and the Home and Building Control business of Honeywell (NYSE: HON) today announced that they have entered into a three-year International Purchase Agreement. In this agreement Honeywell intends to establish LONWORKS^® networks and Echelon's LNS™ network operating system as a worldwide standard for the control infrastructure in Honeywell's building control systems. In addition, the agreement establishes Echelon as the primary supplier of LONWORKS infrastructure products such as installation tools, routers, and network interfaces. 

"This is a watershed event for the building controls industry," said Tom Lohner, vice president of Teng & Associates, North America's leading design engineering firm. "This agreement marks the first time that a major building controls company has positioned itself as a provider of value-added applications built on top of a truly open infrastructure. By doing so, Honeywell is confirming LONWORKS networks as the open industry standard for controls and driving growth in our industry. This agreement is good for Honeywell, Echelon, and our entire industry."

As a part of the agreement, Honeywell will develop LNS plug-ins, software that simplifies the configuration of LONWORKS devices for its LONWORKS product line. Honeywell has sold thousands of LONWORKS products in the industry and new Honeywell LONWORKS products will be available shortly. Several LNS plug-ins are currently available and additional LNS plug-ins are under development. 

"This agreement strengthens and expands our alliance with Echelon and our commitment to LONWORKS networks as a worldwide standard for our industry," said Albrecht Weiss, president of Honeywell's Home and Building Control Products business. "Working together enables Honeywell to provide our customers with the best-value products and application solutions. Leveraging Echelon's open infrastructure allows us to focus on what we do best - providing products, applications and total control solutions."

"We are excited to be entering into this expanded relationship with Honeywell," said Ken Oshman, president and CEO of Echelon Corporation. "This agreement marks a turning point in the building controls industry. By delivering value-added applications on our open, standard infrastructure, Honeywell is once again demonstrating their industry leadership. Honeywell is showing the rest of the industry what they need to do to remain competitive in the age of open networks." 

Honeywell is also a sponsor of the LONMARK^® Interoperability Association, an organization comprised of leading controls companies devoted to making interoperable products based on Echelon's LONWORKS networks the control standard worldwide. The Association includes among its members major building, industrial controls, transportation, and consumer products companies.

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