Major Utility in Victoria, Australia to Trial Echelon’s Advanced Metering System

(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
Echelon's NES system provides an open, bidirectional, and extensible infrastructure that enables a comprehensive range of utility applications that can bring benefits to every aspect of a utility's operation, from metering, to customer services, to distribution operations, to value-added services. The system enables a comprehensive set of energy services, including: two-way automated meter reading; multi-tiered billing; time-of-use and real-time pricing; prepaid metering; remote electrical disconnect and reconnect; distribution system asset optimization; electricity outage detection and restoration management; blackout and brownout elimination; comprehensive revenue protection; real-time direct load control; power quality measurement; and extensive tamper detection features.

About CitiPower
CitiPower is Australia's most reliable electricity distribution company, and is one of five operating in the State of Victoria. It owns and operates the distribution network ("poles and wires") that delivers electricity to customers in Melbourne's Central Business District and inner suburbs, serving 295,000 customers. CitiPower is 51% owned by the Cheung Kong Group of companies, a diverse global business headquartered in Hong Kong; and 49% owned by Spark Infrastructure, an entity listed on the Australian Stock Exchange. The partners also jointly own two other electricity distribution businesses, Powercor Australia in Victoria, and ETSA Utilities in South Australia, and in total supply more than 1.7 million customers. Further information regarding CitiPower can be found at http://www.citipower.com.au/.

About Echelon Corporation
Echelon Corporation (NASDAQ:ELON) is networking company that provides products and systems that can monitor and save energy, lower costs, improve productivity and enhance service, quality, safety and convenience by networking together everyday devices in utility, buildings, industrial, transportation and home control systems. Tens of millions of smart devices based on Echelon’s LonWorks products and Networked Energy Services (NES) systems are in use around the world today bringing benefits to consumers and industry. More information about Echelon can be found at http://www.echelon.com.

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This release was published on openPR.