New Technology Will Work In Conjunction With Over 17.5 Million

Itron Radio-based Meter Modules Installed To Date

Sage Systems, the leading provider of narrowband technology for networking everyday devices via the Internet, and Itron, Inc. (NASDAQ: ITRI) today announced they have partnered to deliver a new energy monitoring solution that will connect meters to the Internet, with the initial focus on electric meters. The technology will give electric, gas and water utilities the ability to create networked Automatic Meter Reading (AMR) systems by leveraging the existing public telecommunications infrastructure.

The Sage/Itron solution takes advantage of Itron's Encoder-Receiver-Transceiver (ERT) meter-mounted modules that allow electric, gas and water meters to be read using radio communications. Over 17.5 million Itron ERTs have been deployed to date, the majority of which are being read with a walk-by or drive-by solution using Itron's R/F data collection technology. The Sage/Itron offering bundles a new product under development from Itron, the ERT reader/receiver, that communicates through a serial port to Sage's new Aladn ERT Powerline Interface (EPI). The bundled Sage/Itron solution is networked to an Aladn Internet Gateway(tm) using the existing electric wires in the home. As a result, the new Sage/Itron solution will allow meter data to be accessed via the Web without any new house wiring. Energy providers will be able to gather meter data from the Aladn Internet Gateway using a combination of pager, telephone, or high-speed Internet access, depending on the type of system installed.

"By co-developing technology with Itron, we are leveraging the communications abilities of both the ERT and Aladn to satisfy a huge market need - essentially Web-enabling non-Internet enabled meters," said Steve Raschke, president & CEO of Sage Systems. "The addition of this technology to the Aladn suite of energy management products could result in the installation of millions of Aladn Internet Gateways, which Sage can then leverage to bring benefits to homeowners, utilities and purveyors of other Aladn-powered products."

In addition to the operational cost benefits provided to utilities by AMR technology, the new offering will provide time-of-use information, without the expense and difficulty of replacing meters, which will result in cost effective, exciting new options for load curtailment and other energy management solutions for both utilities and consumers. For example, one of Sage's Aladn-powered products is a thermostat that communicates with the Sage/Itron meter solution to display the current energy consumption or cost to the homeowner, information that is essential in order to change energy consumption behavior. The Sage/Itron solution also offers load profiling functionality, enabling utilities and energy service providers to manage their energy trading position based on real-time usage data.

"With Itron and Sage's combined energy monitoring, reporting and narrowband networking technology, Web-based AMR is now available in pilot form," said Larry Eggleston, Itron's vice president of business development and strategy. When commercially available, this solution will give energy providers new options for transforming their meter reading processes and adding increased value to their customers by providing critical knowledge about how and when energy is used. "Itron designs technology to accommodate the inevitability of change so that customers can meet their needs today while laying the foundation to migrate to more advanced solutions when and where they need them. Utilization of Itron's existing ERT meter modules in this solution is another example of our commitment to customer value," added Eggleston.

About Itron, Inc.

Itron Inc. is a leading technology provider and source of knowledge to the energy and water industry for collecting, analyzing, and applying critical data about electric, gas, and water usage. Itron technology touches more than $200 billion in energy and water transactions annually. Today, Itron systems are installed at approximately 2,000 utilities in over 45 countries around the world and are being used to collect data from 275 million electric, gas, and water meters. Of those, more than 700 customers use Itron's radio and telephone-based technology to automatically collect information from almost 19 million of those meters. Itron technology is also in use at a number of the newly created wholesale energy markets in the U.S. and Canada to provide critical billing and settlement systems for the power flowing into and out of those deregulating markets. Itron's website can be found at www.itron.com

About Sage Systems, Inc.

Sage Systems, Inc. is an Alameda, California-based company whose narrowband networking technology provides solutions for residential energy control and other "smart home" applications. Sage provides server technology and enterprise-grade Web applications that network with Aladn(tm)-powered products to give home service providers like utilities and energy service providers greater control over operational costs. Sage also provides a powerful connection between home service providers and consumers through its Internet-based Aladn home control technology. To find out more and control Aladn products from your own Web browser, visit www.sagesys.com.

<<Business Wire, 09-11-01, 08:00 Eastern>>

CONTACT: MegaMouth for Sage Systems, Alameda, California | Sean Kauppinen, 415/674-0269 | sean@megamouths.com | or | Itron | Mima Scarpelli, 509/891-3565 | mima.scarpelli@itron.com

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