Echelon and Holley Metering to Develop and Sell Smart Grid Solutions in China

Echelon Corporation and Holley Metering Limited, a leading smart metering vendor in China have announced an agreement under which both companies will form a new joint venture company in China, Zhejiang Echelon-Holley Technology. ("Echelon-Holley"), to focus on the development and sales of advanced smart metering products for China. Echelon-Holley is committed to act in the best interests of the two companies' respective customers and agents.

The new company will be headquartered in Hangzhou, China, and will develop advanced smart metering and related solutions to China's developing smart grid. The partnership will leverage Echelon's Silicon Valley energy control networking innovation center and its 20 years of experience in power line control and communications hardware and software platforms for smart grid applications, and Holley Metering's breadth of metering solutions. The joint venture is majority owned by Echelon. Echelon and Holley Metering will both contribute cash and resources into the new company.

This transaction represents a unique relationship between leading Chinese and U.S. companies in the smart grid industry. Echelon and Holley Metering can leverage their respective strengths through this cooperation. The partnership will create significant value, not only for the two companies involved, but also for the customers, distributors, OEMs and other agents throughout China. This transaction is a highly constructive development in the industry.