Itron to acquire Flow Metrix

Itron Inc. has entered into a letter of intent to acquire all of the outstanding capital stock of Flow Metrix Inc. in a cash-for-stock merger. Upon successful completion of negotiations and due diligence, the parties intend to sign definitive agreements and complete the transaction in the fourth quarter of 2006.

Aug 16th, 2006

SPOKANE, WA, Aug. 16, 2006 -- Itron Inc. has entered into a letter of intent to acquire all of the outstanding capital stock of Flow Metrix Inc. in a cash-for-stock merger. Upon successful completion of negotiations and due diligence, the parties intend to sign definitive agreements and complete the transaction in the fourth quarter of 2006. Financial terms for the transaction were not disclosed.

Flow Metrix is a developer and manufacturer of leak detection systems for underground pipelines. Its MLOG™ leak detection system uses acoustic sensors to detect water loss from water distribution systems. A typical Flow Metrix installation ratio is one MLOG sensor for every 10 water meters. Automatic meter reading (AMR) systems gather the data while reading water meters. MLOG software is used to analyze the data collected and provide the utility with intelligent analysis to pinpoint leaks.

There are over 900,000 miles of buried water pipe in the United States. It is estimated that public water systems typically lose 10% or more of their treated water through pipeline leaks.

"The economic cost to U.S. utilities and their customers of lost water is estimated to be over $2 billion annually," said Malcolm Unsworth, senior vice president of hardware solutions for Itron. "The combination of our water fixed network AMR technology with Flow Metrix's leak detection capabilities will transform the way the water industry monitors the integrity of water pipelines, in the street and in the home. We believe the financial benefits of MLOG-AMR will be attractive for many water utilities."

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