CellNet Data Systems, Inc. and ConnexT Partner to Revolutionize Playing Field for Deregulated Utilities; New Energy Services Are Key To Identifying Key Players In New Age Of Utilities.

SAN CARLOS, Calif.--(BUSINESS WIRE)--Sept. 9, 1996--CellNet Data Systems Inc., of San Carlos, Calif., and ConnexT of Seattle, an independent energy services company of which Puget Power (NYSE: PSD) holds a majority stake, today announced a joint marketing agreement to provide integrated energy information and application services to utilities, and their commercial, industrial and residential customers.

The two companies have also signed a second agreement to deploy a 15,000 meter network for Puget Power customers in Olympia, Washington. Puget Power is already reading the meters which are on-line as part of this network. "We are very pleased with how the installation is going. It's quick and easy," said Maura O'Neill, president and CEO of ConnexT.

The new services jointly offered by CellNet and ConnexT will allow utility customers to save money through cost-effective rate structures, to choose billing and payment schedules that suit their cash flow needs and to gain more detailed information about energy consumption and use. These services are critical if traditional utilities are to stave off competition and "poaching" of customers by upstart energy providers.

"ConnexT has partnered with CellNet because we recognize their industry experience in providing wireless data network services to utilities," said O'Neill. "Accurate, reliable and timely data transmission are `mission critical' for these new services to truly offer added value. We're convinced CellNet can meet these critical requirements."

Under the agreement, financial terms of which were not disclosed, CellNet will provide wireless data communications network services, while ConnexT will provide the utility software interfaces. Together, the companies will offer a range of integrated information solutions that utilities will then make available to their customers. Some of the services will include Network Meter Reading (NMR) and customer information system services including customer billing options, customer record management, time-of-use pricing options, outage management and planning tools.

"CellNet's wireless network coupled with ConnexT's solutions empower utilities to concentrate on customer service, rather than the development of proprietary software applications for their new Network Meter Reading systems," said Jim Jennings, CellNet vice president, sales and marketing. "We feel that ConnexT offers the breadth of applications to meet the needs of today's most innovative utilities."

Industrial and commercial utility customers and the utilities themselves have identified information services as a key component in their ability to manage their businesses more efficiently. These capabilities arm utilities with an arsenal of new tools to compete more efficiently in the new age of deregulation. CellNet Data Systems, Inc., with headquarters in San Carlos, Calif., provides Network Meter Reading and other network information services to the utility industry.

CellNet's wireless network collects timely sales and usage data and delivers information to utilities, allowing them to create a strategic competitive advantage. The network can also be used for other commercial wireless data applications such as home security and remote status monitoring of vending machines and office equipment. CellNet is privately owned and employs approximately 500 people worldwide.

ConnexT, an independent utility services company in Seattle, WA, develops products and services for electric, gas, and water utilities, and retail customers. Capitalizing on advances in communications technology, especially in the wireless arena, ConnexT integrates the best and most cost-effective technology from the industry's leading developers with its own proprietary software into a competitive business model for utilities. Operating as a virtual partner of utilities, ConnexT provides turnkey new services to be marketed under the utilities own name. These products and services help utilities differentiate their base commodity, increase operation efficiency, and generate non-utility revenues. ConnexT's customers include Puget Power, Washington Natural Gas, South Carolina Electric & Gas and Duke Power.

CONTACT: CellNet Data Systems

Rachel Silber, 415/508-6040

or

Copithorne & Bellows for CellNet

Sarah Zuercher, 415/975-2281

or

ConnexT

Gayle Johnson, 206/521-2465