Public Service Electric & Gas to Expand Deployment of Itron Automatic Meter Reading Technology; PSE&G Will Automate 300,000 Gas Meters and Pilot Itron Fixed Network Technology

Business Wire, August 9, 2005

SPOKANE, Wash. -- Itron Inc. (NASDAQ:ITRI) announced today a contract with Public Service Electric & Gas (PSE&G), headquartered in Newark, New Jersey, to deliver a total of 300,000 automatic meter reading (AMR) modules for PSE&G's natural gas meters through the end of 2006.

Itron will deliver 120,000 AMR modules in 2005 and the balance of 180,000 devices in 2006. PSE&G has already automated approximately 70,000 natural gas and electric meters using Itron AMR technology in its service territory.

Under a separate agreement, PSE&G will also be conducting a pilot deployment of Itron's Fixed Network technology. PSE&G will pilot Itron's newest generation of gas and electric Fixed Network technology by the end of the year to evaluate the technology for possible future deployment, and a residential energy management system pilot to evaluate demand response.

Cecil House, PSE&G's vice president of customer operations, said Itron's AMR technology has proven its value to both the utility and its customers and, accordingly, PSE&G is now ready to expand its deployment.

"AMR technology has proven to be a valuable asset in supporting our efforts to control costs and provide our customers with the highest level of service," said House. "By reducing our meter reading costs while eliminating estimated bills and the need to access our customers' properties, Itron has established a strong track record of success here at PSE&G and we're looking forward to extending these benefits to a larger number of our customers."

PSE&G is the largest utility in New Jersey. It serves 2 million electric meters and 1.6 million gas meters across the state.

"Like many of our other large utility customers, PSE&G has experienced the cost efficiencies, accuracy and effectiveness of Itron AMR technology firsthand, and is moving forward with a broader deployment," said Russ Vanos, vice president for Itron's hardware sales. "We look forward to expanding our partnership with PSE&G and also working with them on developing and evaluating the business case for Itron's advanced fixed network technology."

About Itron:

Itron is a leading technology provider and critical source of knowledge to the global energy and water industries. Nearly 3,000 utilities worldwide rely on Itron's award-winning technology to provide the knowledge they require to optimize the delivery and use of energy and water. Itron creates value for its clients by providing industry-leading solutions for electricity metering; meter data collection; energy information management; demand response; load forecasting, analysis and consulting services; distribution system design and optimization; web-based workforce automation; and enterprise and residential energy management. To know more, start here: www.itron.com.

About PSE&G

PSE&G is New Jersey's largest regulated gas and electric delivery utility, serving a majority of the state's population. The utility has about 2 million electric customers and 1.7 million gas customers covering 2,600 square miles. PSE&G received the ReliabilityOne Award again this year for superior electric system reliability in the Mid-Atlantic region. PSE&G is a subsidiary of Public Service Enterprise Group (PSEG) (NYSE:PEG), a diversified energy and energy services company, based in Newark. To know more: www.pseg.com.