BCN Data Systems Awarded Exclusive Nationwide 184 MHz License to Provide Utilities Advanced Remote Metering and Data Services.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 19, 1998--

Licensing Completes Company's Two-Year UK Technology Development

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BCN Data Systems, L.L.C. (BCN), a joint venture of Bechtel Enterprises, Inc. and CellNet Data Systems, Inc., today announced that the Radiocommunications Agency has awarded its UK subsidiary, BCN Data Systems Limited, a nationally exclusive 200 kHz radio frequency license between 183.5 MHz and 184.5 MHz.

BCN will use the allocated frequency block to provide energy utilities and suppliers fixed-network wireless information services that automate the manual meter reading process and deliver other real-time, distribution network data.

"We are delighted that the Radiocommunications Agency has awarded BCN a national and exclusive radio frequency license," said William J. Glasgow, president and chief executive officer, BCN Data Systems, L.L.C. "BCN can now deliver a wide range of services to utilities and suppliers that will help them to succeed today, and in the competitive landscape of the new millennium."

"This technology will also give our utility customers the ability to differentiate their product offering by eliminating intrusive and inconvenient meter reads, and by enabling a variety of pricing and billing options not previously possible," added Glasgow.

The licensing completes BCN's two-year development programme that saw the successful migration of its Local Area Network digital cellular technology to the 184 MHz frequency from the 900 MHz frequency, originally developed for the United States market by BCN's technology parent company, CellNet Data Systems. BCN holds the exclusive license for CellNet Data Systems' technology in markets outside the United States.

"All of the pieces are now in place to deliver utilities a scalable, real-time information service over a network that has nationwide coverage," said Jerry Sprecher, vice president, operations, BCN Data Systems, L.L.C. "BCN is ready for full-scale deployment throughout the United Kingdom."

The Radiocommunications Agency grant of the 184 MHz radio frequency to BCN Data Systems coincides with the anticipated resolution of the rules that will govern metering by the Office of Electricity Regulation (OFFER). The confluence of these two events is expected to lead to the wide-scale commercial deployment of network meter reading systems in the first half of 1999.

About the Product

BCN-Network is a fixed-network wireless information service with powerful object-driven network management tools that offer utilities the ability to remotely meter and monitor endpoint devices distributed over a wide geographic area. Unlike drive-by or hand-held AMR products, BCN-Network offers utilities real-time information on the status and health of their distribution networks, thereby empowering utilities to operate more efficiently and to offer their customers improved service and choice. With its two-way communication capability, the network creates a platform for utilities to offer new products and services to customers including interactive home energy management.

About the Companies

CellNet Data Systems, Inc., www.cellnet.com with headquarters in San Carlos, Calif., is a market-leading provider of open-architecture fixed-network wireless information services. CellNet Data Systems' networks are the largest of their kind in the world, and enable a wide range of real-time customer information services and applications for the energy industry and other commercial markets. CellNet Data Systems has contracts for its network services in seven metropolitan areas in the United States covering 3.9 million meters of which 1.7 million are online.

Bechtel Enterprises, Inc., www.bechtel.com is the development, financing and ownership affiliate of Bechtel Group, Inc., one of the world's premier engineering, construction and project management companies. Since 1990, it has arranged more than $12 billion in project financing worldwide and has developed 26 power projects in construction or operation, with a total generating capacity of more than 7120 megawatts. Bechtel Telecommunications is one of the most experienced wireless site builders in the world, contracting with US West, Sprint, and others to build more than 5,300 PCS sites in the United States, including a record-setting 2,500 cell sites in 12 months. Bechtel employs 30,000 people worldwide with 2,800 employees in the United Kingdom.

BCN Data Systems, L.L.C. www.bcndata.com is a joint venture formed by Bechtel Enterprises, Inc., and CellNet Data Systems, Inc., in December 1996 to market, deploy and operate fixed-network wireless information services to utilities outside the United States. The company has its headquarters in San Francisco, Calif., and offices in the United Kingdom.