NTT DATA Expands Commitment to the LonWorks Networking Platform

7/10/2002 - NTT DATA Corporation and Echelon Corporation (NASDAQ: ELON) announced today, at the LonUsers® International meeting in Tokyo, that NTT DATA has signed an Echelon Open Systems Alliance (OSA) Master Logo agreement. The new agreement increases NTT DATA's commitment to the LonWorks networking platform by making eligible companies within NTT DATA's integration channel to qualify to become LonWorks Integrators. The agreement expands NTT DATA's already extensive commitment to the LonWorks platform as a LonWorks Training partner and LonMark® Certification Center.

“We have been very pleased with our work with Echelon and the LonWorks platform in our core area of expertise and market leadership - Information Technology (IT) and integration,” said Mr. Hidehiro Takakusa, NTT DATA's Senior Vice President. “This new level of commitment will allow us to build partnerships with leading companies in new segments of the automation market. It is our intent to expand our LonWorks business beyond building automation into such markets as factory, home, environment, medical and agricultural automation.”

NTT DATA has established a 20 billion yen sales target for the first three years of operation of its expanded LonWorks business. To accomplish this, the company intends to accelerate the integration of device networks with IT networks in the Japanese market by qualifying 15 LonWorks Integrators under the new OSA Master Logo agreement.

Mr. Takakusa continued, “We are in development of new NTT DATA branded products to support our new, expanded activities using the LonWorks networking platform. In conjunction with our existing LonWorks training business and our activities as a LonMark Certification Center, we absolutely believe that the LonWorks platform will dominate the device networking market in many areas in Japan and Asia.”

“We believe that NTT DATA is a key player in the IT integration and building automation market in Japan and other parts of Asia,” said Bea Yormark, Echelon's president and COO. “NTT DATA and Echelon have built a great relationship these past three years and this latest expansion will, we believe, accelerate the growth of the LonWorks industry in Japan and be very good for both our companies. We're pleased that NTT DATA has agreed to increase its commitment level to the LonWorks platform and its relationship with Echelon.”

Summary of NTT DATA's Involvement with the LonWorks Platform
NTT DATA began using the LonWorks device networking platform to create an advanced building automation system for their computer facility building. By December 1999, NTT DATA had become an Echelon Authorized Network Integrator, the fourth such integrator in Japan. In July 2000, NTT DATA committed to opening a LonWorks training center. Work was completed on the fully LonWorks automated Training Center building by March 2001 in Tokyo and in June of that year a dedicated classroom was opened for an Echelon Authorized Training Center. In October 2000, NTT DATA announced, with the LonMark® Interoperability Association, the first LonMark Certification Center outside the United States.

NTT DATA was established in May 1988 upon becoming independent from Nippon Telegraph and Telephone Public Corporation (the present NTT). NTT DATA is Japan's top systems integrator. It has a strong track record in large-scale system integration and network services, especially in the public sector and the financial industry. NTT DATA is not only active in the field of systems integration, but it also acts as an IT partner that assists corporations in developing new business models utilizing IT and a service provider that designs new services.

About Echelon Corporation
Echelon Corporation is the creator of the LonWorks® platform, the world's most widely used standard for connecting everyday devices such as appliances, thermostats, air conditioners, electric meters, and lighting systems to each other and to the Internet. Echelon's hardware and software products enable manufacturers and integrators to create smart devices and systems that lower cost, increase convenience, improve service, and enhance productivity, quality, and safety. Thousands of companies have developed and installed more than 18 million LonWorks based devices into homes, buildings, factories, trains, and other systems worldwide.

The protocol underlying LonWorks networks and the signaling used by Echelon's power line and free topology transceivers have both been adopted as standards by the American National Standards Institute (ANSI). Echelon is also a founding member of the LonMark® Interoperability Association, an open industry forum of hundreds of leading manufacturers, integrators, and users dedicated to promoting the use of interoperable LonWorks devices. More information is available at Further information regarding Echelon can be found at

Echelon, LonWorks, LonMark, LonUsers, the LonUsers logo, the LonMark logo, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. Other marks belong to their respective holders.

This press release may contain statements relating to future plans, events or performance. Such statements may involve risks and uncertainties, including risks associated with uncertainties pertaining to the timing and level of customer orders, demand for products and services, development of markets for Echelon's products and services; risks associated with NTT DATA’s development of LonWorks based products, the growth of the LonWorks industry in Japan, sales targets not being met, development of markets for NTT DATA’s products and services, and demand for NTT DATA’s products and services; and other risks identified in Echelon's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Echelon undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information
Steve Nguyen
Echelon Corporation

Hilary McCarthy

Naoyuki Shiote

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