Itron, Badger Meter Sign Alliance and Purchase Agreement for Itron AMR Solutions

SPOKANE, WASH. (Feb. 11) BUSINESS WIRE -Feb. 11, 1999--Itron Inc. (Nasdaq:ITRI), a leading global provider of automatic meter reading (AMR) services and equipment to the utility industry, and Badger Meter Inc. (AMEX:BMI), a leading marketer and manufacturer of flow measurement and control technology, announced today that the two companies have signed a 10-year Alliance and Purchase Agreement that will enable Badger Meter to market and distribute a broad range of Itron AMR products to the water utility market.

The new agreement, which includes a commitment from Badger Meter to purchase a minimum of 100,000 Itron meter modules during the first year, also lays the groundwork for joint product development between the two companies for the growing AMR water market.

"We are very excited about this agreement with Badger Meter because it will help us build on the successes we've already achieved working together," said Mike O'Callaghan, vice president for corporate relationships at Itron. "Over the years our experience with Badger Meter has been very positive. Badger combines the strengths of product innovation with a strong customer-first attitude. By signing this agreement, we are confident both companies will be able to further strengthen their market positions in the water industry."

Specifically, the agreement enables Badger Meter to market and sell Itron products to all segments of the industry, including municipal and investor-owned water utilities, private contractors that manage water utilities, and the rapidly emerging submetering market for apartments, condominiums and other types of complexes currently served by centralized meters.

"At Itron, we believe there is huge growth potential for our AMR solutions in the water market - both among investor-owned utilities and municipalities," said Russ Vanos, vice president for utility and energy service solutions at Itron. "Water utilities are becoming much more aware of the operational cost savings and customer service benefits our AMR solutions deliver. This agreement between Itron and Badger Meter will enable us to serve that growing market more effectively."

Badger Meter officials also described the agreement as a win-win situation. "In the last three years, Badger and Itron have developed an excellent working relationship in metering and AMR projects, such as those in Milwaukee, Wis., and Philadelphia, Penn.," said Robert D. Belan, executive vice president of Badger Meter Inc. "In fact, in a majority of instances where utilities have selected Itron AMR technology, they have also selected Badger Recordall(R) meters and RTR(R) digital encoding registers. To date, more than 750,000 Badger meters are either installed or under contract for installation in conjunction with Itron AMR projects.

"With more than 13 million AMR end-point devices installed across the electric, gas and water utility industries, there is no question that Itron is one of the leading AMR providers," Belan continued. "Itron has continued investing in AMR technologies, and has the reputation of delivering a consistently high level of customer service in support of their AMR programs. As part of our defined objective of providing connectivity to leading AMR technologies on behalf of our customers, a stronger relationship with Itron is very appropriate."

Itron is a leading provider to the utility industry of data acquisition and wireless communications solutions for collecting, communicating and analyzing electric, gas and water usage. Itron serves more than 1,500 utility customers in more than 45 countries. The company is headquartered in Spokane, Washington, and has engineering, design, and manufacturing facilities in several U.S. locations and subsidiaries in the United Kingdom, France and Australia. Itron employs approximately 1,200 people worldwide.

Badger Meter Inc. is a leading marketer and manufacturer of flow measurement and control technology as well as the leader in providing digital connectivity to leading AMR technologies. Its products are used to measure and control the flow of liquids and gases in as variety of applications. Badger Meter Inc. is based in Milwaukee, Wisconsin.

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CONTACT: Itron Investor Relations

        Mima Scarpelli, 509/891-3565 

OR

        Itron Marketing Communications Manager 

Tim Wolf, 509/891-3256

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