<PAGE>   1
 
                                                  Darryl A. LeClair
                                                  Echelon International
                                                  Corporation
                                                  President and Chief Executive
                                                  Officer
                                                  813-824-6767
 
                                                  Jeffrey Volk/John W.
                                                  Heilshorn, Jr.
                                                  Lippert/Heilshore & Assoc.,
                                                  Inc.
                                                  212-838-3777
                                                  E-Mail: jeff@lhai.com
 
FOR IMMEDIATE RELEASE
 
                       ECHELON INTERNATIONAL CORPORATION
                    REPORTS FIRST QUARTER FINANCIAL RESULTS
 
     ST. PETERSBURG, FLORIDA, MAY 12, 1997 -- ECHELON INTERNATIONAL CORPORATION
(NYSE: EIN) today announced financial results for its first quarter ended March
31, 1997.
 
     Revenues for the first quarter of 1997 increased 6% to $10.3 million, from
$9.7 million for the first quarter ended March 31, 1996. Operating expenses
decreased to $4.6 million, from $11.1 million in the same period in 1996.
 
     Net income for the first quarter of 1997 was $3.9 million, or $0.57 per
share, compared to a net loss of $(.8) million or $(0.12) per share, for the
same period in 1996.
 
     In addition to net income from regular operations, net income for the first
quarter of 1997 includes $1.4 million realized from the sale and settlement of
the company's interest in the lease of an oil rig to Reading and Bates. In
addition, the company realized a $2.5 million after-tax gain, which had been
deferred, as a result of the previously reported par-value sale of the Life Care
facilities loan. The proceeds of the sale were used primarily to pay down the
company's loan from Salomon Brothers Realty Corp. The early paydown of the
Salomon loan required Echelon to write-off related financing costs, which caused
an extraordinary loss of ($.8) million, or $(0.12) per share.
 
     Echelon reduced its debt by approximately $40 million during the first
quarter, while maintaining a positive cash and marketable securities position of
$63 million. The long-term debt/equity ratio is 26/74 at March 31, 1997.
 
     Larry Newsome, Senior Vice President and Chief Financial Officer, stated
"We are satisfied with the company's first quarter financial performance. We are
pleased that the company was able to reduce its debt, while keeping a strong
cash position. The net income from regular operations was expected. However, the
timing of the Reading and Bates settlement and Life Care facilities loan sale
was unplanned, but not unanticipated. Reserves have been established to
facilitate non-strategic assets sales and as experienced here, future sales may
result in differences between the actual value received and estimated values."
 
     Darryl A. LeClair, President and Chief Executive Officer of Echelon,
commented, "We are well underway with our growth strategies. The company has
started site work on two multi-family housing projects, which total
approximately 689 apartments. We've applied for building permits for our 9th
Street property, and plan to begin construction by midsummer with completion
within 18 months. A construction start is planned for the Carillon multi-family
project in the Fourth Quarter."
 
     "We are also studying the feasibility of constructing a commercial office
building at Carillon, our premier office park, working closely with an
architectural firm on the proposed project."
 
     Mr. LeClair continued, "In addition to Echelon's expansion plans at
Carillon, other corporate clients have begun construction on 1.1 million square
feet of office space on land previously sold by Echelon in the park. Franklin
Templeton is nearing construction completion of its office and plans to move in
by September of this
<PAGE>   2
 
year. Other tenants in the construction phases include Raymond James &
Associates and Aegon/Western Reserve Life."
 
     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 estate
lending business and focus on its core real estate operations. Because such
statements involve risks and 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.
 
                       ECHELON INTERNATIONAL CORPORATION
 
                         SELECTED FINANCIAL INFORMATION
                                  (UNAUDITED)
 
<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED
                                                                  MARCH 31,
                                                              ------------------
                                                               1997        1996
                                                              ------      ------
                                                                (IN MILLIONS,
                                                               EXCEPT PER SHARE
                                                                   AMOUNTS)
<S>                                                           <C>         <C>
Sales and Revenues..........................................  $ 10.3      $  9.7
                                                              ------      ------
Net income (loss) before extraordinary item.................     4.7        (0.8)
Extraordinary item..........................................    (0.8)         --
                                                              ------      ------
Net income (loss)...........................................  $  3.9      $ (0.8)
                                                              ======      ======
Earnings per share :
Net income (loss) before extraordinary item.................  $ 0.69      $(0.12)
Extraordinary item..........................................   (0.12)         --
                                                              ------      ------
Net income (loss)...........................................  $ 0.57      $(0.12)
                                                              ======      ======
Average Common Shares outstanding...........................     6.8         6.5
                                                              ------      ------
</TABLE>
 
                SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
                                  (UNAUDITED)
 
<TABLE>
<CAPTION>
                                                              MARCH 31,   DECEMBER 31,
                                                                1997          1996
                                                              ---------   ------------
                                                                   (IN MILLIONS)
<S>                                                           <C>         <C>
Cash and Marketable Securities..............................   $ 63.0        $ 63.3
Total current assets........................................    107.8         144.1
Leases, loans, and property.................................    318.1         320.7
Total assets................................................    488.5         531.0
Total current liabilities...................................     50.3          92.2
Long-term debt..............................................     72.0          73.8
Deferred income taxes.......................................    161.0         163.3
Stockholders' equity........................................    204.9         201.4
Total liabilities and stockholders' equity..................    488.5         531.0
</TABLE>