Echelon and Samsung Target Home Appliances with Partnership

6/24/2003 - Echelon Corporation (NASDAQ: ELON), the creator of the LonWorks® device networking platform for connecting everyday devices to each other and the Internet, and Samsung Electronics Company Ltd., a world leader in the electronics market, announced that they have signed a Strategic Alliance Agreement under which Samsung will adopt Echelon's PL 3120® and PL 3150® Power Line Smart Transceivers and the LonWorks platform for its HOME VITATM home and consumer. Additionally, Samsung will promote the PL 3120 and PL 3150 Power Line Smart Transceivers to both its HOME VITA alliance partners and to other electronics companies, and Echelon will provide its LonSupportTM and training services to Samsung and its partners to assist with new product design-ins and high-volume manufacturing ramp-up. As part of the agreement, Samsung reaffirmed its support for, and sponsorship of, the LonMark® Interoperability Association, and both companies announced plans to work together to develop LonMark objects for home control and consumer products.

"When people look back at 2003, they will see it as the pivotal year for the home networking market, and the relationship announced today between Samsung and Echelon as the catalyst that moved the market into mainstream, high-volume adoption," said Andrew Chon, Samsung Electronics' Executive Vice-President and Digital Solution Center Manager. "Our years of experience with Echelon's power line technology has proved to us that rock-solid, plug-and-play networks of appliances, air conditioners, consumer electronics, and home control devices are not only cost-effective to build but simple for consumers to install. Echelon has the right products for the mainstream, high-volume consumer market - they're a perfect fit with our HOME VITA line, which brings networking into every product in a home without the complexity typically associated with such systems. The key to igniting the home networking market is to make the networks completely invisible and totally reliable and we believe that Echelon's power line technology is unique in the world in its ability to meet these challenges."

The HOME VITA alliance includes Samsung and Samsung-affiliated companies that are designing and building networked air conditioners, thermostats, A/V systems, hot water heaters, lighting devices, kitchen appliances, and other consumer products. The Agreement calls for Samsung to promote the PL 3120 and PL 3150 products to alliance members.

Joseph M. McGuire, Association of Home Appliance Manufacturers' (AHAM) president said, "Both Samsung and Echelon were active participants in the development of AHAM's standard, Connected Home Appliances - Object Modeling, ANSI/AHAM CHA-1. We applaud their efforts to provide home automation applications that will create new value added services and features to allow remote operation and monitoring of appliances from anywhere in the home or even when you are away from home." AHAM is a not-for-profit trade association representing manufacturers of major and portable home appliance, floor care appliances and suppliers to the industry and is headquartered in Washington, DC.

According to Jaclynn Bumback, In-Stat/MDR's Home Networking analyst, "Samsung is a leading player in the worldwide appliance industry. In-Stat/MDR has anticipated that such a company would make a market-leading move by adopting the LonWorks platform across the board. I believe that Samsung's commitment to the LonWorks platform and power line networking for home appliances is a market-making event."

"Samsung has been a very important and valued customer of Echelon's for years, and we are very pleased to expand the scope and depth of our relationship through this Strategic Alliance Agreement," said Ken Oshman, Echelon's CEO and chairman. "Samsung is highly regarded as one of the world's most innovative and visionary companies and their products have a worldwide reputation for cutting edge style, great value, and exceptional reliability. The marriage of their strengths with our leadership in low-cost, standards-based products for device networking and power line signaling creates, we believe, an important force for moving the home and consumer markets toward mainstream adoption of smart, networked products."

About Samsung Electronics
Samsung Electronics Co., Ltd., with 2002 sales revenue of US$33.8 billion is a world leader in the electronics industry. The Korea-based concern has operations in about 50 countries with about 50,000 employees worldwide. The company consists of four main business units: Digital Media, Digital Appliances, Semiconductors and Information & Communications Businesses. For more information, please visit the website,

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 Further information regarding Echelon can be found at

Echelon is a sponsor of the LonWorld® Exhibition, the world's largest event devoted to the networking of everyday devices, to be held October 15-16th 2003 in Munich, Germany. The show is being organized by TEMA AG. Concurrent with the LonWorld Exhibition, Echelon will hold an international developers' conference. More information on the show can be found at or Contact Echelon for more information about the developers' conference.

Echelon, LonWorks, 3120, 3150, LonWorld, LonMark, the LonMark logo and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. LonSupport is a trademark of Echelon Corporation in the United States and other countries. HOME VITA is a trademark of Samsung Electronics.

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