Echelon and IBM — A Shared Vision

9/25/2002 - Echelon and IBM have a common belief that connecting everyday devices into enterprise applications is the next wave of e-business. By enabling companies to have more timely access to a greater wealth of information from the devices controlling the infrastructure of their operations — businesses can lower costs, increase quality, and improve efficiency and customer service. It also creates new opportunities to deliver new services to their customers and to increase revenues.

Echelon and IBM bring unique and complementary capabilities that can extend enterprise applications, such as supply chain management, CRM, and inventory systems, to include data from monitoring and control of devices that we interact with everyday. IBM, the leading solutions provider in the e-business space, and Echelon, the leading device networking company, together have the technology and expertise necessary to provide solutions to businesses that integrate enterprise business applications with networks of physical devices. IBM's e-business vision and integration expertise at using Internet technologies to improve, redefine, and sometimes create, business processes has already been proven in applications and solutions for businesses worldwide. The millions of installed LonWorks devices form a worldwide base of networks that have the potential to be leveraged and integrated with IBM e-business solutions.

Echelon and IBM — A Successful History of Collaboration
IBM and Echelon have worked together on a number of projects that demonstrate the power and prospects of e-business to smart machine integration.

Echelon and IBM are working together as part of IBM's e-Station project, which is designed to connect smart devices in retail gas stations to enterprise applications to lower operating costs and increase revenues. As the basis for the International Forecourt Standards Forum (a group led by the major international oil companies, including BP, Aral, Exxon/Mobile, Kuwait, Shell, Statoil, Chevron/Texaco, Total Fina) Site communications Bus, Echelon and LonWorks technology bring a wide range of smart devices to the solution, including pole signs, tank gauges, card readers, car washes, and other forecourt equipment.

Echelon and IBM are working together on the BlueSpace project, a joint development between IBM and Steelcase Inc., a leading provider of office furniture systems, to create an interactive and personalized office of the future. LonWorks technology and products from Echelon power the project's lighting and environmental control systems.

The companies have worked together with home appliance and residential gateway manufacturers to demonstrate smart appliances and value-added services that communicate over a home's existing power wiring using Echelon's LonWorks technology and interact with smart services hosted on IBM's Service Management Framework (SMF) and WebSphere products.

Within its own facilities, IBM's Burlington Vermont manufacturing plant uses LonWorks technology to control its clean room environmental systems.

Based on these collaborative efforts, Echelon and IBM hope to bring solutions to market in commercial and home settings such as gasoline stations, kitchen appliances, industrial equipment, and other uses. The two companies continue to work on the integration of LonWorks services and IBM’s SMF to create standards-based, value-added services such as energy management, predictive warranty, appliance monitoring and control, and pay-per-use appliances.

The LONWORKS Platform for Device Networking and Services
With over 24 million LonWorks® enabled processors shipped for use in homes, buildings, factories, trains, utilities, and other systems worldwide, Echelon Corporation (NASDAQ: ELON) is the world's leading provider of technology for networking everyday devices. Echelon offers a broad set of hardware and software products that allow everyday devices — such as light switches, washing machines, conveyor belts, thermostats, door locks, motion sensors, air conditioners, pumps, and valves — to be made "smart" and to communicate with one another and across the Internet. Echelon’s products and services are based on LonWorks technology, an open industry standard. The protocol underlying LonWorks networks and the signaling used by Echelon's power line and free topology transceivers have been adopted as standards by the American National Standards Institute (ANSI).

Echelon created LonWorks device networking over 10 years ago. Since then, LONWORKS device networking has evolved into a complete platform that encompasses an ANSI/EIA communications protocol, network operation system, chipsets, power line and twisted pair signaling technology, Internet servers, routers, network interfaces and other core networking technologies and components. Today, over 24 million LonWorks enabled processors have been shipped. Thousands of manufacturers, engineering firms, and integration companies have embraced the platform and offer LonWorks based products and services. LonWorks devices are installed and running throughout the world monitoring and controlling the infrastructure of everyday devices all around us.

The largest solution deployed to date is the Contatore Elettronico project by Enel S.p.A., the world's largest publicly traded electric utility and Italy's energy provider. When completely deployed, Enel will have equipped over 27 million Italian homes and businesses with LonWorks enable electric meters and transformed their entire electrical grid into an advanced network capable of delivering energy and other value added services. Over 2 million LonWorks enabled electricity meters have been installed to date.

A wide array of other applications have been deployed by Echelon's customers including air-conditioning systems, elevators, lighting, access, security, fire, subway trains, street lights, parking meters, and many, many more. Some examples include those found in:

e-business to Smart Machines is the next wave of e-business. With their uniquely complementary offerings, Echelon and IBM are enabling enterprises to have access to a greater wealth of information, enabling businesses to lower operational costs, increase product and service quality, and deliver improved efficiency and customer service.

Echelon, LonWorks, and the Echelon Logo are registered trademarks of Echelon Corporation in the US and other countries.

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