Echelon Explains Compliance with European Environmental Regulations

SAN JOSE, Calif. /BUSINESS WIRE/ -- Echelon Corp. is announcing a clarification to information published in the Wall Street Journal regarding reduction of hazardous substance (RoHS) compliance of its products. Since early 2005, Echelon has been transitioning its product line to meet the new European Union RoHS environmental regulations, which require companies to eliminate lead and other hazardous substances from certain products sold into the region effective July 1, 2006. The company began shipping its first RoHS-compliant products in late 2005.

"In order to ensure the least possible impact to both our EU customers and ourselves, we began the efforts required to transition our products to meet the new RoHS regulations as soon as the rules were finalized," said Oliver 'Chris' Stanfield, Echelon's executive vice president and CFO. "While there have been some delays in the transition of a few products, we do not expect this to have a material impact on our revenues for the second quarter or full year 2006."

The schedule for RoHS compliant Echelon products can be found on the company's Web site.

About Echelon Corp.
Echelon 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 Pyxos platform, extending the benefits of networking inside machines to the sensors and actuators that make them function. Echelon is based in San Jose, Calif., with international offices in China, France, Germany, Italy, Hong Kong, Japan, Korea, The Netherlands, and the United Kingdom. Further information regarding Echelon can be found on the company's Web site.

Echelon, LONWORKS, and the Echelon logo are trademarks of Echelon Corp. registered in the U.S. and other countries. Pyxos is a trademark of Echelon in the U.S. and other countries. Other marks belong to their respective holders.

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