Gorenje Adopts Echelon's LonWorks Platform for Networked Home Appliances

6/8/2004 - Echelon Corporation (NASDAQ: ELON), the creator of the LonWorks® device networking platform for connecting everyday devices to each other and the Internet, and Gorenje, d.d., Slovenia's largest exporter of household appliances and one of Europe's largest household goods manufacturer, announced that Gorenje's next generation networked home appliances will be based on Echelon's LonWorks technology. Gorenje is incorporating Echelon's market leading power line signaling technology into a new range of LonWorks based appliances targeted at the mid-to-high end European consumer appliance market. The new line of appliances is scheduled for market introduction in Q2 2005 and is planned to include refrigerators, dishwashers, microwave ovens, and conventional ovens to provide consumers with a complete, intelligent kitchen. These products will be designed to actively lower energy costs while improving performance, reliability and convenience. Gorenje's appliance strategy includes the delivery of value-added services for consumers such as advanced appliance diagnostics and monitoring via a broadband service gateway utilizing Echelon's OSGiTM LonWorks Bundle.

According to Franjo Bobinac, Gorenje's CEO and chairman, "We see a strong market trend toward a higher quality of life, greater safety, and a growing demand for increased quality of service across all sectors in the consumer market. We intend to meet that demand by partnering with Echelon to deliver kitchen and home appliances that have extremely high intrinsic value, connect to value-added service portals, and most importantly, deliver on the promise of the digital lifestyle so many consumers are demanding. Further, we are determined to create an open network environment for consumers of our products one that is standards-based, provides the freedom to choose products from any vendor, and is supported worldwide. We selected Echelon's power line signaling technology and the LonWorks platform because it is the only solution available today that meets all of our criteria."

In addition to partnering with Echelon, Gorenje has joined the LonMark® International trade organization to support the definition and propagation of open standards for home appliances worldwide and has become active in the LonMark Task Group for Appliances. The company is also working with Echelon and LonMark on furthering cooperation between the European appliances standards group (CECED) and the North American appliances standards group (AHAM).

"We're delighted that Gorenje has decided to create networked products and solutions that can have such a positive impact on people's lives," said Ken Oshman, Echelon's CEO and chairman. "Gorenje's artistic industrial designs and advanced features make their products very attractive and set them apart from the mainstream. We believe that Gorenje's adoption of Echelon's power line technology, open standards, and interoperability will allow them to deliver networked products that offer the same level of choice and compatibility that consumers enjoy today in non-networked products. In choosing to add networking to their products in this manner, Gorenje should gain a competitive edge setting the stage for creating a better customer experience, offering advanced new services, and generating greater brand loyalty."

Gorenje is adopting Echelon's PL 3120® and PL 3150® Power Line Smart Transceivers to leverage existing power in homes and eliminate the need for additional network wiring. Echelon's OSGi LonWorks bundle will be embedded in Gorenje's home gateway to allow dynamic services that leverage the LonWorks network to be deployed through Gorenje's home services Web portal. The OSGi service platform is an international standard that allows for the dynamic delivery of services to connected devices across broadband gateways. Potential services to be provided by Gorenje include advanced predictive warranty, remote diagnostics, preventative remote maintenance, energy management and other services.

About Gorenje Group
Gorenje is an international corporation with a diversified network of 47 companies in Slovenia and abroad. It is the largest Slovene net exporter with 93% of total sales delivered to customers outside Slovene in more than 60 countries. Over 75% of sales are under "gorenje" or own brand names. Gorenje operates in five business areas: manufacture and sale of household appliances, manufacture and sale of furniture, production and sale of water heaters, tools and equipment for industry, provision of services and environment protection which encompasses waste management and energy trading. It is member of European Association of Producers of Household appliances-CECED. Gorenje, d.d. is listed on the Ljubljana Stock Exchange.

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 40 million LonWorks enabled processors have been shipped for use in homes, buildings, factories, trains, and other systems worldwide.

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.

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