Sweden's largest utility, E.ON Sverige AB, has selected Echelon's NES System for deployment to 370,000 customers in the Malmo, Orebro, and Stockholm areas of Sweden. The tender has been awarded to prime contractor ES Matteknik AB, Sweden's largest system supplier, and was conducted in accordance with EU public procurement procedures. In about two weeks, the tender is expected to be finalized following the completion of an EU-mandated notice period. Echelon and ES expect to finalize their contract within the same timeframe. Echelon expects revenue from the program to be approximately $30 million, with shipments beginning in the fourth quarter of 2006 and continuing throughout 2007.

During the six-month period beginning in late December 2005, Echelon and its partners have won smart metering tenders with Vattenfall of Sweden (up to 700,000 meters), Nuon of The Netherlands (25,000 meters), and E.ON (370,000 meters).

"We elected to base our proposal on the NES system after an extensive evaluation of available smart metering systems," said Eskil Hartman, ES Matteknik's CEO. "Our evaluation showed us that the NES system is a perfect match with our own expertise in meter management. It is our intent to greatly expand our operations and lead the worldwide market for smart metering solutions. In Echelon and the NES System, we believe that we've found a great business partner and an ideal technology to achieve our goals."

Sweden, one of the most active networked metering marketplaces today, is in the process of transitioning to fully automated metering in response to legislation designed to promote a more open and efficient energy market and requiring all electricity meters in Sweden to be read on a monthly basis by July 1, 2009.

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