Echelon Wins Advanced Meter Infrastructure Project With Dutch Utility
Echelon Corporation (NASDAQ:ELON), a global networkingcompany providing technology
and solutions for controls, smartmetering, and energy and environment management,
today announced thatEchelon's NES System has been selected under the European
Union publictender 65798 -- "eTender Automatic Meter Reading" issued
by the Dutchutility Nuon. The companies have entered into a letter of intent,
withfinal agreements expected later in February. Echelon will act as alead supplier
for the project, providing approximately 25,000intelligent, communicating electricity
meters and associated dataconcentrator and NES system software infrastructure.
Initialinstallations are planned to begin in the second quarter of 2006 withfinal
acceptance of the system targeted for late Q4 2006 or Q1 2007.Revenue to Echelon
for the project is expected to be approximately $2million, and is not expected
to be recognized until after thisacceptance.
As part of this deployment, the NES System will also be used tocommunicate to
approximately 25,000 gas meters via a Meter-Bus (M-Bus)interface, a European standard
for connecting various consumptionmeters such as heat, water, and gas meters.
Using the newest membersof Echelon's second generation NES electricity meter family,
which canact as an "M-Bus master" for up to four attached M-Bus devices,
thesegas meters will be able to report alarms and be read over the NESnetwork
on a fixed schedule or on demand, and the usage can beprofiled over time. For
grid operators, like Nuon, that serve both gasand electricity customers, the ability
to read the gas meters over thesame infrastructure being deployed for the electricity
meters canbring significant cost savings and service improvements.
"Nuon was our first trial site when we launched the NES system,and we are
very pleased to be part of this project as they beginmoving toward larger deployments,"
said Ken Oshman, Echelon's CEO andchairman. "Nuon has a very sophisticated
approach to advancedmetering, with a holistic business model that takes into account
awide variety of cost savings and efficiency improvements across thecompany --
a perfect fit for the NES system. Following so closely onthe heels of the Vattenfall
announcement for up to 700,000 NES metersannounced in December, we think this
is further evidence that a seachange is coming in the utility market."
Echelon's NES system provides an open, bidirectional, andextensible infrastructure
that enables a comprehensive range ofutility applications that can bring benefits
to every aspect of autility's operation, from metering, to customer services,
todistribution operations, to value-added services. The system enables acomprehensive
set of energy services, including: two-way automatedmeter reading; multi-tiered
billing; time-of-use and real-timepricing; prepaid metering; remote electrical
disconnect and reconnect;distribution system asset optimization; electricity outage
detectionand restoration management; blackout and brownout elimination;comprehensive
revenue protection; real-time direct load control; powerquality measurement; and
extensive tamper detection features. Taken asa whole, this set of features yields
significant installation,operational, and life-cycle cost savings -- with a typical
paybackperiod of two to five years for most utilities.
About Echelon Corporation
Echelon Corporation (NASDAQ:ELON) is a pioneer and world leader incontrol networking
-- networks that connect machines and otherelectronic devices -- for the purpose
of sensing, monitoring andcontrolling the world around us. Echelon's LonWorks(R)
platform forcontrol networking was released in 1990 and has become a worldwidestandard
in the building, industrial, transportation, and homeautomation markets. Launched
in 2003, Echelon's Networked EnergyServices system is an open, extensible, advanced
meteringinfrastructure that can bring benefits to every aspect of a utility'soperation,
from metering and customer services to distributionoperations and value-added
business. In 2005 Echelon released theworld's first embedded control network infrastructure,
the Pyxos(TM)platform, extending the benefits of networking inside machines to
thesensors and actuators that make them function.
Echelon has been a leader in the advanced metering infrastructuremarket, providing
the underlying network technology for the world'slargest advanced meter management
(AMM) project in Italy, with over 27million connected electricity meters and more
recently, winning atender to provide the NES system to up to 700,000 customers
for theSwedish utility Vattenfall.
Echelon is based in San Jose, California, with internationaloffices in China,
France, Germany, Italy, Hong Kong, Japan, Korea, TheNetherlands, and the United
Kingdom. Further information regardingEchelon can be found at http://www.echelon.com.
Echelon, LonWorks, NES Powered by Echelon, and the Echelon logoare registered
trademarks of Echelon Corporation registered in theUnited States and other countries.
Networked Energy Services Poweredby Echelon, and Pyxos are trademarks of Echelon
Corporation in theU.S. and other countries. Other product or service names mentionedherein
are the trademarks of their respective owners.
This press release may contain statements relating to futureplans, events or performance,
including statements regarding the awardof the tender for the Nuon project, the
timing of installations andacceptance of the system, and the amount and timing
of Echelon'srevenue under the project. Such statements may involve risks anduncertainties,
including risks associated with the ability of the NESsystem and NES meters to
perform as designed, potential production orshipment delays for NES meters and
other components; the risk that theapplication of U.S. generally accepted accounting
principles couldsignificantly affect the method of calculating, and the timing
of, NESrevenues that Echelon expects to recognize under the project; risksthat
the deployment and system integration activities with Echelon andother partners
in the project are not successful, do not meet theirtarget dates, do not expand
or gain momentum, cause Echelon to beliable for penalties or cause the utility
to terminate the project;the risk that the project is challenged by third parties
and otherrisks identified in Echelon's SEC filings. Actual results, events andperformance
may differ materially. Readers are cautioned not to placeundue reliance on these
forward-looking statements, which speak onlyas of the date hereof. Echelon undertakes
no obligation to releasepublicly the result of any revisions to these forward-lookingstatements
that may be made to reflect events or circumstances afterthe date hereof or to
reflect the occurrence of unanticipated events.