CellNet Data Systems and Metretek Announce Alliance to Supply Wireless Technology Solutions to Gas Industry

Business Wire, Feb 24, 1997

SAN CARLOS, Calif.--(BUSINESS WIRE)--Feb. 24, 1997--CellNet Data Systems, Inc. (NASDAQ: CNDS) and Metretek, Inc., a subsidiary of Marcum Natural Gas Services, Inc. (NASDAQ: MGAS), a leading supplier of electronic meter reading and remote monitoring systems for the utility industry, today announced the intention to offer a combination of wireless and telephone-based services to the gas utility industry, allowing CellNet and Metretek to offer a range of low-cost meter reading and data collection options to their customers.

CellNet and Metretek intend to provide utilities with a comprehensive and compatible product line to meet the information and communications needs of the increasingly competitive utility marketplace. Metretek's telephone-based data collection and management software will be integrated into the CellNet wireless network system, enabling CellNet to provide multi-technology Network Meter Reading (NMR) services to equip utilities to reach a much larger percentage of their customers.

Additionally, CellNet's wireless communications technology will be incorporated into Metretek's new and existing products, enabling data collected from industrial, commercial and residential gas meters, volume correctors and other Metretek services to be communicated over CellNet's lower-cost wireless network.

"Our alliance with Metretek provides us with an alternative communication platform for gas customers located within and outside areas serviced by our wireless network," said John M. "Mick" Seidl, president and CEO at CellNet. "We plan to leverage Metretek's technology and proven know-how to provide full coverage for gas utility companies regardless of where their customers are located."

By integrating a CellNet radio module into Metretek's Tru-Volume Corrector, its low-cost-meter mounted gas volume corrector, Metretek will be able to provide utility companies the opportunity to replace mechanical correctors with electronic correctors and, at the same time, expand metering services. This two-channel unit will transmit uncorrected gas volume, as well as gas volume corrected for pressure and temperature, over the wireless network.

"Many utilities are at a crossroads today," said R.W. McKee, president of Metretek. "In order to stay competitive, utilities recognize the need to offer hourly and daily meter reading services beyond their industrial customer base. Until now, this expansion has been restricted by the costs involved in using traditional telephone-based meter reading. By incorporating CellNet's wireless technology into our data communications network, we can overcome this limitation and provide a low-cost alternative for utilities to collect information from their customers on a daily basis."

Metretek also plans to incorporate CellNet's wireless communications into several other data collection applications. With the integration of the CellNet radio module into their existing Pressure Monitor, gas utilities will have the option to monitor pressure at key distribution system points, such as the end of distribution feeders, that up till now have been too costly to monitor.

Additionally, incorporating a radio into Metretek's Cathodic Protection Monitor will allow regular test station monitoring, identifying breakdowns in cathodic protection as they happen; in contrast to today, when breakdowns may not be detected before the annual scheduled field test. Moreover, the lower cost of installation and operation on the wireless network provides gas utilities with an economic solution to monitor and protect their distribution assets.

"The alliance between our two companies allows Metretek to better serve its existing customers and to attract new customers. We anticipate significantly increased sales in the residential and commercial AMR market segments, after long being a leader in the industrial AMR market," said W. Phillip Marcum, president and CEO of Marcum Natural Gas Services, Metretek's parent company.

The Companies

Metretek, headquartered in Melbourne, Fla., is a leading worldwide supplier of electronic systems for flow measurement, monitoring and control in the gas utilities industry. The company's patented technology uses the existing voice telephone network for data communications in a unique way. Metretek has built its reputation as a leading provider of quality products and services serving the natural gas industry for 20 years.

CellNet Data Systems, Inc., with headquarters in San Carlos, Calif., provides Network Meter Reading and other network information services to the electricity, gas and water utility industries. CellNet's wireless network collects timely sales and usage data and delivers information to its utility customers, allowing them to create a strategic competitive advantage by enhancing their value to end-users.

The network can also be used for other commercial wireless data applications such as home security and remote status monitoring of vending machines and office equipment. CellNet employs approximately 550 people worldwide.