Sutton and East Surrey Water Awards Smart Metering Contract to Elster

Innovative V210 volumetric polymer water meter supplied with wireless automated meter reading (AMR) systems

LUTON, England, January 25, 2011 - Elster (NYSE: ELT) announced today that Sutton and East Surrey Water has
selected Elster to supply up to 36,000 volumetric water meters in the UK over
the next three years. Half of these meters will be enabled with wireless
automated meter reading (AMR) systems.

The V210 volumetric polymer meter offers long life and high accuracy over
a wide operating range with very low environmental impact. The product is
designed to form an integral part of Elster's advanced metering system and
has been approved to the latest European Directive (2004/22/EC) and
associated European and International standards.

The V210 polymer meter can be equipped with a state-of-the-art wireless
AMR technology and is the first water meter to achieve compliance with the UK
Water Industry Specification 4-32-19 making it suitable for all
installations, including land which may be contaminated or at risk of future
contamination.

Elster recently received a Product Innovation Award for the V210
volumetric polymer water meter as part of the European Utility Awards. This
prestigious award announced during the 2010 Metering Europe conference
confirms Elster's leadership in polymer meter technology.

"Sutton and East Surrey are impressed with the award-winning V210 polymer
volumetric water meter and look forward to the imminent installation of these
meters from Elster as part of our extended metering programme," said Jeremy
Downer, distribution manager for Sutton and East Surrey Water.

"We are delighted to have received the tender award from Sutton and East
Surrey Water. The innovative V210 polymer water meter with a wireless AMR
system has been specifically developed to support UK utilities with their
water management programmes," commented Jerry Lauzze, executive vice
president of Elster's global water business.

About Elster

Elster (NYSE: ELT) 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.

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

About Elster Metering Limited

Elster Metering Limited is a world leader in providing innovative water
metering solutions, including low flow and leakage detection applications.
Elster Metering Limited manufactures water meters for utility, commercial and
domestic use at its factories worldwide and offers a complete water metering
portfolio including solutions for revenue metering, cost allocation, network
monitoring, distribution and industrial applications.

For more information about Elster Metering, please visit
www.elstermetering.com.

Investors: John Bluth, Elster Investor Relations and Corporate Communications, +1-919-250-5425, john.bluth at elster.com, or Ronald Botoff, Elster Investor Relations, +1-919-212-4857, ron.botoff at elster.com, or Media: Rainer Mueller-Mueffelmann, Elster Corporate Communications, +49(0)6134-605-213, rainer.mueller-mueffelmann at elster.com, or Perry Shead, Marketing Communications, Elster, +44-1582-846400, perry.shead at gb.elster.com