(San Jose, CA – May 2007) – Echelon Corporation (NASDAQ: ELON) announced today that the Swedish utility Vattenfall AB has exercised a third option for up to 100,000 additional Echelon NES meters and associated data concentrators and system software, bringing the total number of meters released under the project to about 600,000. Revenue to Echelon under the options announced today is expected to be approximately $7 million, depending upon the mix and total number of products ordered, with shipments expected to take place over a 9 to 12 month period beginning in the fourth quarter of 2007.
“The NES based Titanium advanced metering system that our partner Telvent is installing at Vattenfall is, we believe, one of the most successful deployments of next generation metering technology occurring today,” said Ken Oshman, Echelon’s chairman and CEO. “By exercising this option so quickly on the heels of the exercise of two other options just a few months ago, we believe Vattenfall has again demonstrated the value of the NES system as the market’s premier advanced metering system and Telvent as a trusted project management partner.”
“Led by utilities like Vattenfall, the metering market is undergoing a transformation, moving to smart meters and advanced metering systems that will power the 21st century. Our project with Vattenfall is certainly one of the most successful advanced metering projects in Europe, if not the world,” said Manuel Sánchez Ortega, Telvent’s chairman and chief executive officer. “The project is a showcase for others to follow and demonstrates Telvent’s world-class ability to execute such large scale projects.”
Additional information about the December 2005 framework agreement between Vattenfall and Echelon may be found at http://www.echelon.com/company/press/2005/vattenfall05.htm.
Additional information about the first set of options exercised by Vattenfall can be found at http://www.echelon.com/company/press/vattenfall07.htm.
About Telvent
Telvent (NASDAQ: TLVT), the Global RealTime IT Company, specializes in high value-added solutions in four specific industry sectors (Energy, Traffic, Transport and Environment) in Europe, North America, Latin America, the Asia-Pacific region, and the Middle East and Africa. Further information regarding Telvent can be found at http://www.telvent.com.
About Vattenfall
Vattenfall is Europe’s fourth largest generator of electricity and the largest producer of heat. Consolidated sales in 2006 amounted to SEK 145,815 million. Vattenfall’s vision is to be a leading European energy company. Operations today are conducted in Sweden, Denmark, Finland, Germany and Poland. Vattenfall works in all parts of the electricity value chain: generation, transmission, distribution and sales. Vattenfall also conducts energy trading and lignite mining, and produces, distributes and sells heat. The Group has slightly more than 32,000 employees, and the parent company, Vattenfall AB, is 100%–owned by the Swedish state. Further information regarding Vattenfall can be found at http://www.vattenfall.com.