4/15/2003 - Echelon Corporation (NASDAQ: ELON) announced that it has completed the acquisition of certain assets of Metering Technology Corporation (MTC) of Scotts Valley, California, effective April 11th, 2003. The $11 million cash transaction, subject to adjustments based upon contractual conditions including MTC's compliance with covenants and the accuracy of its representations and warranties, includes certain assets, liabilities, technology and products of MTC primarily related to MTC's latest generation of advanced, communicating electricity meters. Echelon intends to integrate and adapt the acquired meter designs for use in Echelon's Networked Energy Services (NES) offering to utilities. No customer contracts are being assumed and Echelon has no plans to offer any acquired products for sale outside of use in the NES system. To support the needed development work, sixteen people from MTC have joined Echelon as a result of the acquisition. Echelon will update its spending guidance in the company's Q1 earnings call scheduled for April 15th, 2003.
"We are very excited to add MTC's technology, products, and people to Echelon," said Bea Yormark, Echelon's president and COO. "This acquisition brings us a strong foundation upon which to build the high-value, low-cost electricity meters central to our network energy services platform."
MTC is a provider of energy measurement solutions with a core competency in low-cost, communicating electricity meters. The NES system is designed to leverage Echelon's end-to-end LonWorks® device networking infrastructure to offer substantial operational savings to electric utilities worldwide while at the same time allowing them to increase the quality of service to customers.
About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) 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 LonWorks products and more than 30 million LonWorks enabled processors have been shipped for use in homes, buildings, factories, trains, and other systems worldwide.
The protocol underlying LonWorks networks and the signaling technology used by Echelon's power line and free topology transceivers have 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 http://www.lonmark.org. Further information regarding Echelon can be found at http://www.echelon.com.
Echelon, LonWorks, LonMark, the LonMark logo and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries.
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