ERDF Selects Elster for Proof-of-Concept Smart Meter

Elster to Extend Life of Linky Smart Meters with New Modular Architecture Designed to Support Future ERDF Smart Grid Initiatives

MAINZ, Germany, September 10, 2010 - Elster announced today that Electricite Reseau Distribution France
(ERDF), a wholly owned subsidiary of the EDF Group and one of the largest
electricity distribution networks in the European Union, has selected Elster
to help it develop an interoperable and modular Smart Meter to support its
future Smart Meter and Smart Grid initiatives.

The ERDF Linky Smart Meters are part of the utility's Linky automated
meter management (AMM) system, which is designed to provide advanced metering
infrastructure (AMI) services that enable the electricity Smart Grid. The
Linky Smart Meters will help ERDF customers control electricity consumption,
improve overall energy management and enable the utility to perform remote
meter reads.

The Elster proof-of-concept modular Smart Meter will be designed with a
dual architecture featuring both a socket and communications module. The
Linky smart socket could remain at a customer site for significantly longer
than existing technology. Connected to the smart socket, the Linky smart
module can be quickly and easily replaced to keep pace with frequent advances
in communications technologies. This flexibility extends the life of ERDF
Smart Meters, while still delivering the energy efficiency benefits provided
by new technologies.

"In an effort to keep pace with new technologies and to provide its
customers with the most advanced services, ERDF has selected Elster to
develop an innovative, modular Smart Meter," said Frank Hyldmar, executive
vice president, electricity, rest of world, Elster. "We are excited to
deliver the modular Smart Meters that can power the ERDF Linky AMM system,
enabling the electricity Smart Grid in France."

"Elster remains on the cutting-edge of technology development and meter
design, delivering new AMI and Smart Grid solutions that enable utilities
across the globe to improve energy management and customer service," added
Hyldmar.

Elster will develop the modular Smart Meter during the next 11 months,
along with another supplier, and several samples will be produced and
approved for field-testing by ERDF. By choosing two development partners,
ERDF will assure the level of interoperability of the meters, as well as
compatibility with the existing Linky AMM system, including integration with
the utility's ATOS information system.

The meter concept would then be submitted to the Measuring Instruments
Directive (MID) committee for approval. The MID (2004/22/EC) is a directive
from the European Union which intends to create a common market for measuring
instruments across the 27 countries of the EU. Under the MID, meters which
receive MID approval may be used in all EU countries.

About Elster

Elster is one of the world's largest electricity, gas and water
measurement and control providers. Our 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. Our 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. It 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.

Elster was acquired by funds advised by CVC Capital Partners in September
2005.

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

John Bluth of Elster Corporate Communications, +1-919-250-5425, john.bluth at elster.com; or Geoffrey Riggs of Elster Integrated Solutions, +33-467-22-66-62, geoffrey.riggs at coronis.com