ITOCHU Announces Conclusion of Sole Agency Contract with Echelon U.S. for LONWORKS Products in Japan

February 22, 2013

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that it has concluded a sole distributor agreement in Japan with Echelon Corporation (headquartered in San Jose, California, USA; Ronald A. Sege, Chairman and Chief Executive Officer; hereinafter “Echelon”). ITOCHU has also concluded a distributor agreement with Midoriya Electric Co., Ltd. (headquartered in Chuo-ku, Tokyo; Makoto Kuroha, President; hereinafter “Midoriya Electric”) to expand sales of Echelon products in Japan.

Echelon develops the network technology LONWORKS (Lon=Local Operating Network) to control installations, and sells electronic components compatible with LONWORKS technology (CPU, communication transceivers, module boards), software (equipment development tools for manufacturers, network building tools for installers), communications equipment (network interfaces, routers, built-in web servers), and so forth. LONWORKS technology is a standardized multi-protocol, allowing the decentralized control of a range of electronic equipment, including lighting, air conditioning, elevators, and different types of sensors installed in facilities and plants, irrespective of the manufacturer. Echelon’s products are being used in around 20 countries, including the United States, China, and Japan, for building installation management, industrial installations, automation systems for energy monitoring or control equipment, and so forth. Further, these products can be combined with smart meters to offer a community-wide comprehensive smart grid solution.

Midoriya Electric is a trading company specializing in semi-conductors, electronic parts and equipment, and so forth, with advanced technical capability and a wealth of experience in LONWORKS technology spanning over 20 years.

Under the brand ecoFORTE, since 2009 ITOCHU has been developing energy control systems and smart IT infrastructure business utilizing IT, as well as business for smart street lighting and control of power distribution networks utilizing Echelon’s LONWORKS technology. In collaboration with our agency Midoriya Electric, ITOCHU aims to further expand the market for this business in the future by further exploring customer needs and developing fresh uses for LONWORKS technology, as well as offer a leading edge smart grid solution for social infrastructure operators.

Company name Echelon Corporation
Representative Chairman and Chief Executive Officer: Ronald A. Sege
Head office San Jose, California, USA
Established 1988; listed 1998 (NASDAQ: ELON)
Outline of business Sale of software and hardware for control utilizing LonWorks technology
Company name Midoriya Electric Co., Ltd.
Representative Makoto Kuroha
Head office Nihonbashi-muromachi, Chuo-ku, Tokyo
Date of establishment 1946
Outline of business Trading company specializing in semi-conductors, electronic parts, electronic equipment, etc.