Press release

Raleigh, North Carolina, United States, February 6, 2007 Elster Electricity announces expansion of EnergyAxis System at Midstate Electric Cooperative

Elster, a leading provider of metering solutions worldwide, announces that Midstate Electric Cooperative in LaPine, Oregon is expanding its EnergyAxis System. Midstate Electric initially installed over 500 REX® meters during its trial stage that began in October 2005. It is now moving into the first phase of expansion and is installing approximately 100 REX meters per month on new construction in this rapidly growing area of Oregon. It is also implementing a plan to replace all pre-existing meters with REX meters over the coming years.

Midstate Electric selected Elster’s EnergyAxis System because it was familiar with the EnergyAxis System’s communication technology. Additionally, it tested a demonstration system over the winter of 2005 and found the system performed well in areas with dense tree growth and snow-covered trees. Other driving factors for Midstate Electric were the amount of information the EnergyAxis System provides and its ease of installation with no additional infrastructure costs.

Midstate Electric’s EnergyAxis System uses A3 ALPHA® meter collectors with an RS-232 interface and INET IP-addressable radios to provide an RS-232 over Ethernet communications protocol for system data collection. In addition to monthly billing reads, REX meters are read on a daily basis for load profile data. Midstate Electric uses data such as system voltages, peak demand, and customer usage to look at transformer loading and determine where improvements to the distribution system are needed.

"Midstate Electric Cooperative has used the trial system for load studies looking at voltage drop, transformer loading and service requirements in our new subdivisions. The system has sold itself!" stated Gary Logsdon, Midstate Electric Cooperative’s Meterman.

"The ease of installation of the EnergyAxis System has sold us. It has proven extremely reliable and has exceeded all of our expectations," said Tim Judd, Midstate Electric Cooperative’s Senior Meterman. "This system is so simple and the amount of information available makes it the best buy for our metering dollars. It’s easy. I don’t know how else to describe it. It’s just easy."

Ronald B. Via, vice president of Elster Electricity said, "I am delighted that the unparalled performance of the Energy Axis System exceeds the customer's performance expectation and satisfies the criteria for a positive business case."