Echelon Corporation 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 Sanchez 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 - News), 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.
About Echelon Corporation
Echelon Corporation (NASDAQ:ELON - News) is a networking company that provides products and systems that can monitor and save energy, lower costs, improve productivity and enhance service, quality, safety and convenience by networking together everyday devices in utility, building, industrial, transportation and home control systems. Tens of millions of smart devices based on Echelon's LonWorks® products and Networked Energy Services (NES) systems are in use around the world today bringing benefits to consumers and industry. More information about Echelon can be found at http://www.echelon.com.
Echelon, LonWorks, 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, including statements regarding the number of NES meters that may be ordered for the Vattenfall project under the options or otherwise, the timing of shipments of Echelon's NES products, the delivery of updates for the Vattenfall project by Echelon, the amount and timing of Echelon revenues from the project, and the status of the Vattenfall project. Such statements may involve risks and uncertainties, including the risk that Echelon does not receive firm purchase orders for the designated options in a timely manner or at all; potential production or shipment delays of NES products and components by Echelon or its production partners; risks that the deployment and system integration activities with Echelon, Telvent and other partners in the project encounter difficulties, do not meet their target dates or cause Echelon to be liable for penalties; the risk that complicated revenue recognition requirements under United States generally accepted accounting principles will affect the timing of recognizing revenue from the Vattenfall project; 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:
Echelon Corporation
Julia O'Shaughnessy, +1-408-938-5357
julia@echelon.com
or
Atomic Public Relations
Allyson Stinchfield, +1-415-402-0230
allyson@atomicpr.com
Source: Echelon Corporation
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