Lonworks® enabled device sales exceed $500 million, directly influencing equipment sales of $7 billion

Ellicott City, Md., May 17, 2004 — The Newton-Evans Research Company released highlights from its multi-month study of the LONWORKS community, focused on its presence and growth in the energy industry. The new report is entitled LONWORKS®: General Usage Patterns and Market Perspectives for the Energy Industry. Publication date for the report is May 28, 2004.

The creative force behind the development of the open, interoperable LONWORKS platform and the leading supplier of LONWORKS enabled devices is the San Jose-based Echelon Corporation. Today, there are thousands of manufacturers and suppliers of LONWORKS compatible devices. These networked devices are then integrated or embedded into OEM equipment and products.

LONWORKS applications can be found in the energy industry throughout the industrialized and developing regions of the world. Thousands of companies have developed and installed LONWORKS products, and more than 40 million LONWORKS enabled processors have been shipped from device manufacturers for use in homes, buildings, factories, trains, utilities, and other applications worldwide.

The LONMARK® International trade association is an independent, industry-run association that defines the guidelines for interoperable operation of LONWORKS devices, and certifies that devices comply with the LONMARK interoperability guidelines.

While discussions about communications in energy circles often center on wide area network issues and protocols, LONWORKS is used by domestic and international electric power and gas utilities, as well as by other energy companies, for control applications in a local operating network. The world’s largest publicly traded electric utility, ENEL SpA, has implemented the LONWORKS platform in its customer meters, which it uses to transmit meter data back to the billing computer. In fact, this single user represents nearly one third of all installed LONWORKS devices, and has today installed in excess of 15 million LONWORKS compatible devices.

Recently, Echelon formed a new division, Networked Energy Services (NES), to market its utility metering and infrastructure products. New NES VAR partners include Telvent (Madrid) and EDMI (Singapore).

Usage of the LONWORKS platform in the utility and energy fields includes local area operational network applications, (including consumer premises), as well as power plants, wind and solar energy facilities, transformer substations, gas processing plants, oil platforms and refineries, energy pipelines, and cogeneration facilities.

In a broader context, the building, factory, and home automation segments are key markets for the LONWORKS platform today. In addition, the platform is growing in use among energy industry firms, consumer product manufacturers, and within the transportation industry. The underlying communications protocol of the LONWORKS platform is incorporated into ANSI, IEEE, CEN (pending), AAR, and SEMI standards, and is accredited as an open standard.

The Newton-Evans report is focused on the growing reliance by the energy industry on the LONWORKS platform. The study is based on interviews conducted over the last nine months with scores of users and suppliers of LONWORKS products, systems and services.

Prior to publishing this report, Newton-Evans staff attended the 2003 LONWORKS Exhibition in London, participated in the LonWorld® 2003 Conference and Exhibition in Munich meeting with more than 50 LONWORKS suppliers, and completed a market outlook survey of LONWORKS manufacturers and integrators.

The 40+ page LONWORKS ®: General Usage Patterns and Market Perspectives for the Energy report is priced at $395.00. Further information is available at the Newton-Evans Research Company website (www.newton-evans.com) or by e-mail (jsmall@newton-evans.com).

The company can be reached by telephone at 1-800-222-2856 or 1-410-465-7316. The Newton-Evans Research Company is located at Suite 204, 10176 Baltimore National Pike, Ellicott City, Maryland 21042.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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