AquaSource Selects Itron Technology for Nationwide Meter Automation Program.

Business Editors

SPOKANE, Wash.--(BUSINESS WIRE)--April 13, 2000

Fast-Growing DQE Subsidiary Seeks To Improve Efficiency,

Customer Service Among Its Water Utility Acquisitions

Itron Inc. (Nasdaq:ITRI) announced today that it is teaming up with DQE Enterprises Inc. to provide automated meter reading (AMR) technology to AquaSource Inc., an acquisition-oriented water utility company based in Pittsburgh, Pennsylvania.

AquaSource is one of the fastest-growing investor-owned water utilities in the country, with more than 400,000 water meters in 19 states under current ownership or management.

AquaSource will work exclusively with a joint-venture company established by Itron and DQE Enterprises created to deliver meter automation and turnkey meter-related services to utilities and municipalities. "The first phase of meter automation system deployment will take place in Texas, where AquaSource will automate approximately 35,000 water meters distributed throughout the state," said Allen Sayles, president of the joint-venture company. The value of the phase one contract to all vendors is approximately $7 million.

Phase one, which includes the installation of new water meters equipped with Itron ERT modules, began in March, and is expected to take approximately nine months to complete. Itron Mobile AMR technology will collect and deliver the meter data to an Itron MV-RS host computer system. Subject to success of phase one, subsequent phases of the project could include expansion of the water meter automation system to all of AquaSource's customers across the nation over a multi-year period, said Sayles.

According to AquaSource President Don Clayton, this project will enable AquaSource to create a centralized meter data collection platform; improve billing accuracy by replacing older, "slow-running" meters; and improve customer service by eliminating estimated reads and billing.

"The successful development and multiphase deployment of a meter automation and replacement program is a key component to AquaSource's competitive strategy and its ability to meet customers' needs," said Clayton.

"There's a revolution taking place in the water utility industry today and it represents a strong growth opportunity for Itron," said Andrew Alpert, vice president and general manager of Itron's Water and Public Power Business Unit. "With costs spiraling upward, growth-oriented, investor-owned water utilities such as AquaSource realize that technology will play a key role in reducing the cost of water service delivery and improving customer service."

To meet AquaSource's objectives, the Itron-DQE Enterprises joint venture company has organized a team of "world-class" suppliers and service companies to provide the components and expertise necessary for the project. In addition to managing the installation process, Itron will serve as the single-source provider of AMR technology. Other key suppliers and service providers include Badger Meter, who will supply the new water meters equipped with Recordall(R) Transmitter Registers (RTR(R)), Carson Industries, A.Y. McDonald Mfg. Co., ACT Pipe and Supply, TruCheck, Honeywell DMC, and RESTOR/FSB.

Itron Inc., a leading provider to the utility industry of solutions for collecting, communicating, and analyzing electric, gas and water usage data, serves over 1,500 utility customers in more than 45 countries around the world. The company is headquartered in Spokane, Washington, and has engineering, design, and manufacturing facilities in several US locations and subsidiaries in the United Kingdom, France, and Australia.

AquaSource is an acquisition-oriented water utility company headquartered in Pittsburgh, Pennsylvania, with strategic locations throughout the United States. In its first year of operation, AquaSource became the largest investor-owned water utility in Texas.

DQE Enterprises acquires and develops businesses involved in energy services and technologies, communications and electronic commerce. These businesses apply technology to enable customers to derive greater value from essential commodities such as electricity, gas, water, communications and information, making these commodities more useful and cost-effective.

AquaSource and DQE Enterprises are subsidiaries of DQE Inc. (NYSE:DQE), a growth utility delivering essential products, including electricity, water and gas, to more than one million customers throughout the United States. DQE offers the stability of a utility and the spirit of a dot-com business by applying leading-edge technology to create greater value for customers and shareholders.