Susan Glatthorn Johnson
                                          Senior Vice President
                                          Echelon International Corporation
                                          Phone:  727-803-8250
                                          E-mail: sjohnson@echelonintl.com

                                          Cynthia L. Sanders
                                          Manager of Financial Reporting
                                          Echelon International Corporation
                                          Phone:  727-803-8231
                                          E-mail: csanders@echelonintl.com

FOR IMMEDIATE RELEASE

                         ECHELON INTERNATIONAL ANNOUNCES
                           FIRST QUARTER 1999 RESULTS

ST. PETERSBURG, FL, May 14, 1999 - Echelon International Corporation (NYSE:
EIN), a real estate company which develops, owns and manages multi-family
residential and commercial real estate, today announced financial results for
the first quarter ended March 31, 1999.

Net income was $2.1 million, or 31 cents per diluted share for the quarter ended
March 31, 1999, compared to $3.4 million, or 50 cents per diluted share for the
same period a year ago. Sales and revenues were $9.8 million for the quarter
ended March 31, 1999, compared to $13.2 million for the same period last year.
The 1999 decreases in both net income and revenue are attributable to 1998
one-time events. The Company's first quarter 1999 sales and revenues from core
real estate operations actually increased by $2.2 million primarily as a result
of an overall increase in the occupancy level and rental rates in the Company's
commercial and multi-family properties.

The decrease in both revenues and net income for the quarter ended March 31,
1999 is primarily the result of a $2.7 million decrease in sale of development
properties and development rights and a $1.6 million decrease in revenues from a
joint venture in which the Company had a 50% interest. The Company made a
strategic decision to remove certain development properties from the market in
order to retain the land for future Company development. The 1999 decrease in
joint venture revenues is primarily due to the joint venture's one-time sale of
two aircraft engines in the first quarter of 1998.

As of March 31, 1999, the Company's debt / equity ratio (including current
portion of long-term debt) was 39 / 61, with a cash position of $21.6 million.

HIGHLIGHTS FOR THE QUARTER INCLUDE:

->     Construction of ECHELON AT BAY ISLE KEY, a 369-unit multi-family
       residential community located in the Gateway area of St. Petersburg,
       Florida, was completed in late February 1999. As of today, 97% of the
       units are leased.


<PAGE>

->     Construction of the clubhouse was completed as of March 31, 1999 for
       ECHELON AT THE RESERVE, a 314-unit multi-family residential community
       located in CARILLON PARK. Leasing is progressing and to date over 119
       units have been leased. Construction will be completed by the third
       quarter of 1999.

->     In addition to the completion of ECHELON AT BAY ISLE KEY and the ongoing
       construction of ECHELON AT THE RESERVE, ten multi-family residential
       communities are currently under development and/or construction.

->     Construction continues on CASTILLE AT CARILLON, two class A buildings
       connected by a covered loggia totaling 103,900 square feet, located in
       CARILLON PARK. An on-schedule construction completion is projected for
       June 1999.

->     In April 1999, the Company closed on a $19.3 million permanent loan with
       Teacher's Insurance and Annuity Association of America ("TIAA") for
       ECHELON AT BAY ISLE KEY. The TIAA permanent financing paid off the $16.5
       million construction loan.

Darryl A. LeClair, Echelon chairman, president and chief executive officer,
commented,

      "We continued to grow our multi-family residential and commercial real
      estate portfolio. Our multi-family capital expenditures were $28.3 and our
      commercial capital expenditures were $4.7 million for the first three
      months of 1999. We achieved this development level while maintaining our
      1998 year end liquidity level of $21.6 million and only increasing our
      debt / equity ratio from the 1998 year end level of 36 / 64 to 39 / 61 as
      of March 31, 1999."

Commenting on the quarter results, Larry J. Newsome, Echelon chief financial
officer and senior vice president, stated,

      "We are pleased by our 1999 first quarter financial performance. However,
      as we've said previously, our success to date is not a forecast of 1999
      results. Specifically, financial results from 1997 and 1998 are not
      indicators of projected 1999 net income. Redirecting capital into our real
      estate pipeline may possibly lower net income for 1999, as is typical of
      the early stages of real estate development."

Echelon International Corporation is a real estate company which develops, owns
and manages commercial and multi-family residential real estate. The Company
also owns and manages a portfolio of financial assets consisting primarily of
leased aircraft and other assets and collateralized financings of commercial
real estate and aircraft. Echelon's core growth strategy is to build its
multi-family residential real estate portfolio and maximize the value of and
grow its existing commercial real estate assets. The Company will continue to
withdraw from the real estate and aircraft lending business to focus on its core
real estate operations.

                                    # # # # #

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<PAGE>

NOTE: CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE REGARDING OTHER THAN
HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND ARE INTENDED TO BE COVERED
BY THE SAFE HARBOR CREATED THEREBY. SUCH STATEMENTS, INCLUDING THOSE CONCERNING
ECHELON'S EXPECTED SOURCES AND USES OF FUNDS AND CAPITAL EXPENDITURES AND ITS
BUSINESS STRATEGY INCLUDING ITS PLANS TO GRADUALLY WITHDRAW FROM THE AIRCRAFT
AND REAL ESTATE LENDING BUSINESS AND FOCUS ON ITS CORE REAL ESTATE OPERATIONS,
INVOLVE RISKS AND UNCERTAINTIES.

WHERE THE COMPANY EXPRESSES AN EXPECTATION OR BELIEF AS TO FUTURE EVENTS, SUCH
EXPECTATION OR BELIEF IS EXPRESSED IN GOOD FAITH AND IS BELIEVED TO HAVE A
REASONABLE BASIS. HOWEVER, SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS,
UNCERTAINTIES AND OTHER FACTORS, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING
STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL STRATEGIES AND THE TIMING
AND EXPECTED RESULTS THEREOF TO DIFFER MATERIALLY FROM SUCH FORWARD-LOOKING
STATEMENTS ("CAUTIONARY STATEMENTS") INCLUDE, BUT ARE NOT LIMITED TO THOSE
FACTORS IDENTIFIED UNDER "CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS" IN THE COMPANY'S 1998 ANNUAL REPORT. GIVEN THESE UNCERTAINTIES,
READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON SUCH FORWARD-LOOKING
STATEMENTS.

ALL SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO THE
COMPANY OR TO PERSONS ACTING ON ITS BEHALF ARE EXPRESSLY QUALIFIED IN THEIR
ENTIRETY BY THE CAUTIONARY STATEMENTS. THE COMPANY DISCLAIMS ANY INTENT OR
OBLIGATION TO UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS SET FORTH IN THIS
PRESS RELEASE, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR
OTHERWISE.

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<PAGE>

                        ECHELON INTERNATIONAL CORPORATION

                   CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
                                  (IN MILLIONS)

                                               MARCH 31,    DECEMBER 31,
                                                 1999           1998
                                               ---------    ------------
                                              (unaudited)

Cash and cash equivalents                       $  21.6       $  21.6
Total current assets                               76.5          75.1
Real estate, leases, loans and other              434.5         414.0
investments
Total assets                                      516.6         494.2
Total current liabilities                          41.1          40.5
Long-term debt (excluding current portion)        128.3         106.0
Deferred income taxes (excluding current          128.7         131.4
portion)
Stockholders' equity                              218.0         215.8
Total liabilities and stockholders' equity        516.6         494.2

Total capital expenditures                         33.0          90.4


                    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

                                                       THREE MONTHS ENDED
                                                            MARCH 31,
                                                      1999             1998
                                                      ----             ----
                                                          (unaudited)

Sales and revenues                                    $ 9.8           $ 13.2
Operating Expenses                                      8.9              9.7
                                                     ------          -------

Income Before Income Taxes                               .9              3.5

Income Tax Expense (Benefit)                           (1.2)              .1
                                                      ------          -------

Net income                                            $ 2.1            $ 3.4
                                                      ======           ======

Diluted earnings per common share                     $  .31           $  .50
                                                      ======           ======
Diluted weighted average common shares outstanding      6.8              6.8
                                                      ======           ======

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