Ameritech and Cellnet Join Forces to Offer Utilities Two-Way Connection to Customers.

SAN CARLOS, Calif.--(BUSINESS WIRE)--June 3, 1996--CellNet Data Systems, Inc., and Ameritech (NYSE: AIT), through the joint venture it leads with Wisconsin Electric Company (WEC), today announced that they have signed a Memorandum of Understanding (MOU) to partner on a non-exclusive basis to develop and provide two-way, interactive energy information services linking utilities with their residential and small commercial and industrial customers.

Together, CellNet and Ameritech aim to provide utilities with a comprehensive set of powerful yet cost-effective energy management and information services ranging from simple meter reading to home automation. CellNet and Ameritech expect to have pilot installations in place by the end of the year.

Services to be offered in conjunction with the partnership include ready access to customer usage data, real-time pricing, load control, real-time outage notification and other forms of two-way messaging between a utility and its customers. Households will interact with their utility via a wall-mounted customer interface device that will act as a central thermostat and messaging center. With an Ameritech-designed module, additional devices such as controllers for water heaters and pool pumps can be added as needed.

With over 1.2 million network automated meters under contract, CellNet is the leading provider of network information services to energy utilities. Wisconsin Energy Corp., of Milwaukee, through its Wisconsin Electric (WEPCO) subsidiary, has been testing a prototype of the Ameritech system in 15 homes, and is in the process of installing it in 200 homes in the Milwaukee area, with plans to expand to 5,000 homes later in 1996. Other pilot locations are also under way.

"As a result of deregulation, utilities are focusing more and more on offering customers choice, flexibility and enhanced satisfaction," said John M. "Mick" Seidl, CellNet president and CEO. "At CellNet, we recognize the need to provide utilities with services such as value-added energy management and home security services. This partnership with Ameritech is one of several alliances we're developing to help utilities manage change within the industry."

"This partnership is an excellent example of two companies integrating technology to help utilities operate in a more competitive environment," said Richard Taylor, president of the Ameritech/WEC venture. "Utilities that invest today in installing the right technology to make their communications and customer services more efficient and flexible will be best-positioned to grow in the future."

CellNet's system for Network Meter Reading (NMR) is one of the fastest-growing applications of wireless technology. CellNet currently operates the largest fixed-point wireless network commercially deployed to the utility industry. Unlike other Automatic Meter Reading (AMR) technologies that provide only monthly meter reads, CellNet's NMR services deliver a wide range of on-line, real-time customer service options and applications.

CellNet Data Systems, Inc., with headquarters in San Carlos, Calif., and more than 450 employees worldwide, markets a flexible, cost-effective, two-way wireless data communication system to the utility industry. CellNet's network collects timely usage data and delivers information to utilities, enabling them to create a strategic competitive advantage. The network also can be used for other commercial wireless data applications such as monitoring widely distributed low-cost assets where the cost of communications must be commensurate with asset value. Status monitoring of vending machines, home security systems, office machines, traffic lights and personal safety devices are examples of such applications.

Ameritech (NYSE: AIT) is one of the world's largest communications companies, with more that 13 million customers. The company provides a wide array of local phone, data and video services for the home, businesses and governments around the world. Ameritech is also one of the world's leading cellular companies, with more than 1.7 million cellular and 659,000 paging customers, and holds cellular interests in Norway and Poland. Ameritech owns interests in telephone companies in New Zealand and Hungary and in business directories in Germany and other countries.

Information about CellNet and its products can be found on the World Wide Web at http:/www.cellnet.com.

CONTACT: CellNet Data Systems

Rachel Silber, 415/508-6040

or

Copithorne and Bellows for CellNet

Sarah Zuercher, 415/284-5200

or

Ameritech

Kathy Dohse, 312/335-2919