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Echelon Expands Presence in Outdoor Lighting With Acquisition of Established Player, Lumewave

Echelon Corporation (NASDAQ:ELON), open-interoperable control networking pioneer for the Industrial Internet of Things (IIoT), announced that it has acquired Lumewave Inc., a wireless outdoor lighting control system provider with a strong track record selling its solution to U.S. municipalities, universities, medical facilities and enterprises. Echelon will sell the Lumewave products—which include individual lighting controllers, gateways, and management and maintenance software—and will incorporate Lumewave’s established sales channels in North America into its existing channels worldwide. Terms of the transaction were not disclosed.

“With this acquisition of Lumewave, Echelon is enriching our product portfolio and sales channels in outdoor lighting control, for both city street lighting and the compelling market for enterprise and commercial outdoor lighting,” said Ron Sege, CEO and chairman, Echelon Corp. “Lumewave’s products, combined with Echelon’s own, will give our customers tremendous flexibility in controlling their outdoor lighting assets. The expanded product offerings and sales coverage will enhance Echelon’s revenue stream and allow us to better address the fast-growing North American market.”

The outdoor lighting market—which encompasses streetlights as well as lighting for parking areas, walkways and other outdoor spaces—is growing significantly. According to the Northeast Group, the market for street lights with smart controls is forecast to grow from less than 2 million units today to more than 100 million units in the next 10 years. The value of installed controls is expected to rise from less than $250 million to more than $10 billion by 2024, with 40 percent of that investment expected in North America.

Echelon plus Lumewave expand options for outdoor lighting customers

“Echelon’s pioneering leadership in control networking technologies, and its strong success in outdoor lighting markets outside the U.S., make this an ideal match for our wireless outdoor lighting solutions,” said Mark Keating, president of Lumewave. “Adding Lumewave’s proven radio frequency (RF) solution and our established North American channels to Echelon’s capabilities in wired control systems will enable more customers to be served more quickly.”

Lumewave’s standards-based wireless solutions for outdoor lighting will continue to be available through its established manufacturer’s rep channel and will now also be sold through Echelon’s direct sales and manufacturer reps and integrators in the U.S. The combined product portfolio will target streetlighting and other outdoor lighting installations, such as parking lots and structures, university and corporate campuses, hospitals, large retailers such as shopping malls and auto dealerships, parks and recreational facilities.

Lumewave has established a presence in a number of high-profile locations in the U.S., including the University of California campuses at Davis, Irvine and Santa Barbara; the California State University at Fullerton; the city of San Francisco; and the VacaValley (Calif.) Hospital. The benefits of Lumewave adaptive LED street and area lighting solutions have been promoted by SPEED (State Partnership for Energy Efficient Demonstrations), a program supported by the California Energy Commission and managed through the California Institute for Energy and Environment (CIEE). The cited benefits include saving energy, cutting electricity and maintenance costs, and providing better-quality lighting to enhance safety and aesthetics.

About Lumewave

Lumewave provides innovative, standards-based wireless solutions for control and monitoring of outdoor lighting. Its customers include cities and municipalities responsible for outdoor lighting (roads, streets, parks, etc.) as well as commercial entities (e.g., car dealerships, mall operators) responsible for outdoor lighting, typically parking lots and parking structures. Customers use Lumewave solutions to set lighting dimming/on/off schedules, monitor light fixture operation and health, and measure and control energy usage. Privately held Lumewave has its headquarters in Sacramento, Calif. More information is available at www.lumewave.com.

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON), a pioneer in developing open-standard control networking platforms, delivers all the elements necessary to design, install, monitor and control industrial-strength ‘communities of devices’ within the lighting, building automation, grid, Internet of Things, ‘maker’ and other markets worldwide. Echelon develops and sells complete systems and subsystems for target applications, plus system-on-chips (SoCs), embedded software, and commissioning and management tools for OEMs. With more than 100 million Echelon-powered devices installed worldwide, the company helps its customers easily and safely migrate existing control systems to the most modern platforms, while bringing new devices and applications into an ever-growing global Industrial Internet. Echelon helps its customers reduce operational costs, enhance satisfaction and safety, grow revenues and perform better in both established and emerging markets. More information about Echelon can be found at http://iiot.echelon.com, or echelon.com and at the company's blog at blog.echelon.com.

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; the risk that Echelon's product and service offerings by themselves or combined with other applications or offerings do not perform as designed or do not offer the expected benefits and savings; 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.

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