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ELO Announces Echelon-Powered Cemig 'City of the Future' Pilot in Brazil

   ELO Announces Echelon-Powered Cemig 'City of the Future' Pilot in Brazil

Emphasis on Customer Engagement and New Grid Functionality Make Sete Lagoas
1,500 Meter Pilot a Model for Cemig's 7 Million Customers

PR Newswire

SAN JOSE, Calif., Dec. 17, 2012

SAN JOSE, Calif., Dec. 17, 2012 /PRNewswire/ -- Echelon Corporation (NASDAQ:
ELON), a global leader in energy control networking for the smart grid, today
announced a 1,500 unit pilot in Brazil through its partner ELO at Cemig's City
of the Future project in the Sete Lagoas region. Cemig is the largest power
company in Brazil, serving over 7 million customers in 774 municipalities.
Echelon is providing smart metering sub-systems to ELO, leveraging its proven
Energy Control Networking Platform. With some of the highest non-technical
loss rates in the world, and increased use of distributed generation, the
Brazilian market needs a multi-application smart grid infrastructure such as
the Echelon solution that encompasses more than just traditional metering.

Cemig's City of the Future project is designed to assess the capability and
benefits of the adoption of a Smart Grid for future deployment. Its primary
goals are to motivate customer engagement through meter installation,
workshops, and monitoring and to validate new services, assess benefits, and
improve operational efficiency for advanced metering infrastructure and
distribution automation. The Sete Lagoas region includes 95,000 residential,
commercial, and industrial customers. Sete Lagoas was chosen because it
includes a range of old and new infrastructure within high, medium and low
voltage, telecommunications systems, offering a heterogeneous network,
economic profile, and range of applications.

"With strong fundamental economic drivers, the Brazilian market represents a
large and attractive opportunity and we're pleased to show successful trials
through our partner ELO," said Ron Sege, chairman and CEO of Echelon. "We are
successfully targeting growing markets, applying our power line communication
and Control Operating System (COS) software and laying the groundwork for a
multi-application edge-of-the-grid solution with high profile local partners
such as ELO."

This past August, Brazil's National Agency of Electrical Energy, ANEEL,
announced long awaited regulations regarding the deployment of smart meters
throughout Brazil. These new regulations require all new meter installations
to be smart meters by early 2014, but they do not require the replacement of
existing legacy meters. While this reduces the overall Brazil market size from
previous estimates by approximately 25% to $28 billion per Northeast Research,
it clarifies the process and provides a timeline and specifications so that
utilities have a path for investment. With non-technical losses in Brazil
estimated between 10-30%, smart meter deployments can yield immediate savings
and leverage other smart grid applications such as renewables and home energy
management.

"The Brazilian market is very large and it is now prepared to make the bold
steps toward modernization and creating a truly smart grid," said Marcos
Rizzo, vice president of Business Development of ELO. "We believe that basing
our smart meter on the industry standard Open Smart Grid Protocol (OSGP) and
our system solution on Echelon technology enables us to uniquely deliver
improved quality of service, reduce peak demand and operational costs, and
protect revenue for our customers."

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is an energy control networking company,
with the world's most widely deployed proven, open standard, multi-application
platform, selling complete systems and embedded sub-systems for smart grid,
smart city and smart building applications. Our platform is embedded in more
than 100 million devices, 35 million homes, and 300,000 buildings and powers
energy savings applications for smart grids, smart cities and smart buildings.
We help our customers reduce operational costs, enhance satisfaction and
safety, grow revenues and prepare for a dynamic future. More information about
Echelon can be foundat http://www.echelon.com.

Visit the Smart Energy Blog by Echelon.

About Open Smart Grid Protocol (OSGP)
The Open Smart Grid Protocol (OSGP) is a family of specifications published by
the European Telecommunications Standards Institute (ETSI) used in conjunction
with the ISO/IEC 14908 control networking standard for smart grid
applications. OSGP is optimized to provide reliable and efficient delivery of
command and control information for smart meters, direct load control modules,
solar panels, gateways, and other smart grid devices. With over 3.5 million
OSGP based smart meters and devices deployed worldwide it is a widely used
smart meter and smart grid device networking standard. More information about
OSGP can be found at www.opensmartgridprotocol.org.

Echelon and the Echelon logo are registered trademarks of Echelon Corporation
registered in the United States and other countries. Other product or service
names mentioned herein are the trademarks of their respective owners.

This press release may contain statements relating to future plans, events or
performance. Such statements may involve risks and uncertainties, including
risks associated with Brazilian market acceptance of Echelon's technology by
itself or combined with other applications or offerings, including offerings
by ELO; the risk that Echelon's offerings by themselves or combined with other
applications or offerings do not perform as designed or do not offer the
expected benefits and savings; risks associated with international sales; the
timing of orders and the possibility that pilot orders may not expand into
full deployments; 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:
Colleen Martell
+1 (408) 832-0147
cmartell@echelon.com

SOURCE Echelon Corporation

Website: http://www.echelon.com