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                       ECHELON INTERNATIONAL CORPORATION
           ANNOUNCES SECOND QUARTER AND SIX MONTHS FINANCIAL RESULTS
 
     ST. PETERSBURG, FLORIDA, AUGUST 14, 1997 -- ECHELON INTERNATIONAL
CORPORATION (NYSE: EIN), today announced financial results for its second
quarter and six months ended June 30, 1997
 
     Sales and revenues for the second quarter ended June 30, 1997 were $8.5
million compared to $17.9 million for the same year ago period. Net income for
the second quarter of 1997 was $1.4 million, or $0.21 per share, compared to a
net loss of $19.4 million, or ($2.99) per share, for the quarter ended June 30,
1996.
 
     Sales and revenues for the six months ended June 30, 1997 were $18.8
million compared to $27.6 million for the comparable year ago period. Net income
for the first half of 1997 was $5.3 million, or $0.78 per share, compared to a
net loss of $20.2 million, or ($3.11) per share, for the six months ended June
30, 1996.
 
     Echelon reduced its debt by approximately $23 million during the second
quarter, and $66 million for the first six months of 1997. Debt repayment
included approximately $31.3 million on the Salomon Brothers loan and $32.9
million to payoff the debt from Echelon's former parent. The Company's long-term
debt/equity ratio was 29/71 with a cash position, including marketable
securities, of $55.0 million as of June 30, 1997.
 
     The decrease in sales for the second quarter and six months ended June 30,
1997 compared to the same year ago periods was primarily due to decreases of
$6.6 million and $6.3 million on the sale of development properties and a $1.8
million and $3.2 million decrease, respectively, in interest income resulting
from loan receivable payoffs and disposition.
 
     Operating expenses for the second quarter ended June 30, 1997 decreased by
$42.6 million from the same period in 1996, primarily due to a decrease of $31.8
million in the provision for lease, loan and real estate losses. During the
second quarter of 1996, the Company recorded $29.2 million for losses
anticipated to be incurred on the sale of non-strategic assets and also recorded
an impairment of $1.9 million on an income-producing building and on real estate
under development. During the second quarter of 1997, the Company received $24.3
million from sale of an investment in unconsolidated affiliates and settlement
of two aircraft loans. The disposal of these assets, which were previously held
for sale, resulted in the reversal of $15.0 million of previously recorded
provisions for losses. With these funds, the Company repaid the remaining $22.9
million of debt to its former parent, Florida Progress Corporation. The Company
reclassified an aircraft finance lease from assets held for sale, to assets held
for use, and reversed $4.7 million of previously recorded provisions for losses.
Also during the second quarter of 1997, the Company recognized a $19.0 million
impairment, reflected in the provision for losses, on income-producing property
in which the Company's strategy changed from long-term hold and use to
medium-term hold and sale.
 
     Of the $1.4 million of earnings for the second quarter, the after-tax
effects of reversals of previously accrued provisions ($19.7 million) and
impairment write-downs ($19 million) represent approximately $300,000. Included
in the $5.3 million in net income for the six months ended June 30, 1997 are
several significant adjustments which occurred and were reported in the first
quarter. These adjustments occurred primarily from the sale of loans and
settlement of a leveraged lease.
 
     Larry J. Newsome, Senior Vice President and Chief Financial Officer,
stated, "We are pleased with our financial performance for the second quarter
and six months ended June 30, 1997. We are also pleased to note that we are
ahead of schedule with respect to our debt repayment and asset restructurings,
further strengthening the Company's balance sheet. Reducing Echelon's debt while
maintaining a strong cash balance puts us in excellent position to move forward
with our strategic plan."
 
     Commenting on the provision reversals, Mr. Newsome stated, "The reversals
were required under the accounting rules because the specific assets to which
they related were either disposed of at higher values than originally
contemplated, or were reclassified from held for sale, to held for use, as was
the case with the aircraft finance lease."
 
     With respect to the asset write downs under the impairment rules, Mr.
Newsome stated, "In reassessing our strategic plan, it became clear that our
original long-term strategy with respect to some of our commercial
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real estate assets did not provide us with the flexibility required to maximize
the value of these assets. We therefore concluded that it was in the best
interest of the shareholders to recognize these impairments currently and
develop short and medium-term exit strategies that would allow us the
opportunity to maximize their value."
 
     Echelon International Corporation is a real estate and financial services
company involved in development, ownership and management of commercial and
multifamily residential real estate. The company also manages a portfolio of
aircraft and real estate loans and aircraft leases. Echelon plans to gradually
withdraw from the aircraft and real estate lending business and focus on its
core real estate operations.
 
    Cautionary Statement Regarding Forward-Looking Statements: Certain
statements contained herein regarding matters that are not historical facts are
forward-looking statements, including statements 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
uncertainties, actual strategies and the timing and expected results thereof may
differ materially from those expressed or implied by such forward-looking
statements. Factors that could cause such differences include, but are not
limited to, those set forth in materials filed by Echelon with the Securities
and Exchange Commission.
 
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                       ECHELON INTERNATIONAL CORPORATION
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
<TABLE>
<CAPTION>
                                                               THREE MONTHS      SIX MONTHS
                                                                  ENDED             ENDED
                                                                 JUNE 30,         JUNE 30,
                                                              --------------   ---------------
                                                              1997     1996     1997     1996
                                                              -----   ------   ------   ------
                                                                        (UNAUDITED)
                                                               (IN MILLIONS, EXCEPT PER SHARE
                                                                          AMOUNTS)
<S>                                                           <C>     <C>      <C>      <C>
SALES AND REVENUES:
Real estate operations
  Rental income.............................................  $ 3.3   $  2.9   $  6.1   $  5.9
  Sale of development properties............................     --      6.6       .3      6.6
  Marina and other revenues.................................    1.7      2.8      4.6      4.0
  Equity in losses of partnerships..........................    (.3)      --      (.8)      --
Lending and leasing operations
  Interest income...........................................    1.9      3.7      4.1      7.3
  Earned income on finance leases...........................     .9       .9      1.6      1.8
  Other.....................................................    1.0      1.0      2.9      2.0
                                                              -----   ------   ------   ------
                                                                8.5     17.9     18.8     27.6
OPERATING EXPENSES:
Real estate operations......................................    2.8      3.6      6.8      5.9
Cost of development properties sold.........................     --      6.9       .3      6.9
Depreciation................................................    1.3      1.5      2.5      2.9
Provision for lease, loan and real estate losses............    (.7)    31.1      (.7)    31.1
Interest expense:
  Former parent advances....................................     --      4.9       --      9.6
  Long-term debt............................................    2.5       .6      5.2      1.2
Allocated administrative expenses of former parent..........     --       .2       --       .4
Marketing and other administrative..........................    1.8       .5      4.6      1.6
Other (income) expenses, net................................    (.7)      .3     (7.1)     1.2
                                                              -----   ------   ------   ------
                                                              7.0..     49.6     11.6     60.8
INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY ITEM....    1.5    (31.7)     7.2    (33.2)
INCOME TAX EXPENSE (BENEFIT)................................     .1    (12.3)     1.1    (13.0)
NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEM.................    1.4    (19.4)     6.1    (20.2)
EXTRAORDINARY ITEM:
  Loss on extinguishment of debt, net of income tax benefit
     of $.5 million.........................................     --       --      (.8)      --
                                                              -----   ------   ------   ------
NET INCOME (LOSS)...........................................  $ 1.4   $(19.4)  $  5.3   $(20.2)
Average shares of common stock outstanding..................    6.8      6.5      6.8      6.5
Per share data:
  Net income (loss) before extraordinary item...............  $0.21   $(2.99)  $ 0.90   $(3.11)
  Extraordinary item........................................     --       --    (0.12)      --
                                                              -----   ------   ------   ------
  Net income (loss) per common share........................  $0.21   $(2.99)  $ 0.78   $(3.11)
                                                              =====   ======   ======   ======
</TABLE>
 
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                       ECHELON INTERNATIONAL CORPORATION
 
                          CONSOLIDATED BALANCE SHEETS
 
<TABLE>
<CAPTION>
                                                               JUNE 30,     DECEMBER 31,
                                                                 1997           1996
                                                              -----------   ------------
                                                              (UNAUDITED)
                                                                    (IN MILLIONS)
<S>                                                           <C>           <C>
Cash and Marketable Securities..............................    $ 54.9         $ 63.3
          Total Current Assets..............................     108.1          144.1
Leases, Loans & Property....................................     312.7          320.7
          Total Assets......................................     461.8          531.0
          Total Current Liabilities.........................      45.0           92.2
Long-Term Debt..............................................      48.9           73.8
Deferred Income Taxes.......................................     160.0          163.3
          Total Stockholders' Equity........................     207.6          201.4
          Total Liabilities and Stockholders' Equity........     461.8          531.0
</TABLE>
 
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