Elster Launches New AS300 Residential Smart Electricity Meter to Meet International Demand for Advanced Smart Grid Functionality

New Smart Meter features aesthetic design and next-generation capabilities to meet specific Smart Metering market requirements -

ESSEN, Germany, January 6, 2011 - Today, Elster (NYSE: ELT) announced the launch of the new AS300
residential smart electricity meter for the European market. This is the
latest advance in Elster's integrated solutions portfolio and an innovative
addition to the company's global advanced metering infrastructure (AMI)
offerings.

Designed with a modern aesthetic for interior residential deployments,
which are common across Europe, the AS300 will initially be marketed to
European utilities as they work to comply with the EU's 2009/28/EC directive
to install Smart Meters in 80 percent of homes by 2020.

Elster's complete suite of Smart Metering and Smart Grid solutions,
including the AS300, smart gas and water meters, meter data management
software and in-home display units, provides flexible and comprehensive
solutions for both dual and single fuel applications.

The AS300 offers a modular design allowing utilities the flexibility to
quickly and easily exchange communications technologies throughout the life
of the meter to protect their investment as technology and regulatory
requirements evolve.

"We are excited to introduce an innovative, next-generation Smart Meter
that will specifically address energy requirements in European markets," said
Frank Hyldmar, executive vice president, Elster Integrated Solutions and
Elster Electricity International.

"Smart Metering is the foundation of the Smart Grid and the release of
the AS300 will help empower consumers and utilities to reduce energy
consumption in line with the EU's target for a 20 percent reduction by 2020,"
Hyldmar added.

Designed to comply with the latest industry standards for data privacy
and security, the AS300 provides customers with additional proprietary
technology to protect against fraud and tampering.

With a comprehensive array of interchangeable features and functions,
Elster plans to market specific variations of the AS300 that meet the
individual requirements for each customer it serves. The AS300 will be on
display at the 2011 E-World Energy & Water Exhibition February 8-10 in Essen,
Germany.

"As a pioneer in developing innovative metering technologies, Elster is
bringing the AS300 to market as the Smart Grid conversion in Europe begins,"
said Kim Norgaard, vice president sales and marketing, Elster Integrated
Solutions and Elster Electricity International.

"We believe the AS300, which is built on open standards to facilitate
interoperability, and designed with dual fuel applications in mind, is set to
further enable Smart Grid adoption across Europe," Norgaard added.

About Elster

Elster (NYSE: ELT) is one of the world's largest electricity, gas and
water measurement and control providers. The company's offerings include
distribution monitoring and control, advanced smart metering, demand
response, networking and software solutions, and numerous related
communications and services - key components for enabling consumer choice,
operational efficiency and conservation. Elster's products and solutions are
widely used by utilities in the traditional and emerging Smart Grid markets.

Elster has one of the most extensive installed revenue measurement bases
in the world, with more than 200 million metering devices deployed over the
course of the last 10 years. The company sells its products and services in
more than 130 countries across electricity, gas, water and multi-utility
applications for residential, commercial and industrial, and transmission and
distribution applications.

For more information about Elster, please visit www.elster.com.

Investors, John Bluth, Elster Investor Relations and Corporate Communications, +1-919-250-5425, john.bluth at elster.com, or Ronald Botoff, Investor Relations, +1-919-212-4857, ron.botoff at elster.com, or Media, Rainer Muller-Muffelmann, Corporate Communications Europe/Rest of World +49-6134-605-213, rainer.mueller-mueffelmann at elster.com, or Geoffrey Riggs, Marketing Communications, Elster Integrated Solutions, +33-467-22-66-62, geoffrey.riggs at coronis.com, all of Elster