Badger Meter, Inc. and Itron, Inc. Extend Alliance - Distribution Agreement

Business Wire, Nov 19, 2008

MILWAUKEE -- Badger Meter, Inc. (NYSE: BMI) today announced it has extended its alliance and distribution agreement with Itron, Inc. (Nasdaq: ITRI) of Spokane, Wash., through February 2011. The two-year contract extension permits Badger Meter to continue marketing Itron automatic meter reading (AMR) technologies to water utilities throughout North America.

"Over the past 10 years, Badger Meter has been a major seller of Itron automatic meter reading products to water utilities across the U.S. The extended agreement with Itron enables us to continue to include Itron AMR technology as part of the comprehensive AMR/AMI product portfolio we offer to the water utility market," said Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter.

"A significant number of water utilities have selected the Itron AMR technology in combination with our highly regarded line of Recordall([R]) water meters for their installations. In fact, Badger Meter is the number-one reseller of Itron technology to the water industry. We are pleased to continue offering Itron technology as an option to our customers," said Meeusen.

The new agreement is structured to permit further contract extensions beyond 2011.

"We are very pleased to extend our alliance with Badger Meter. Badger Meter is an important Itron partner in bringing our AMR technologies to the marketplace," said Russ Vanos, vice president of marketing for Itron. "As water utilities face increasing challenges, our priority is delivering solutions that help our customers balance demand against finite supplies."

About Itron

Itron Inc. is a leading technology provider to the global energy and water industries. Itron Inc. consists of Itron in North America and Actaris outside of North America. The company is the world's leading provider of metering, data collection and utility software solutions, with nearly 8,000 utilities worldwide relying on its technology to optimize the delivery and use of energy and water. Itron's products include electricity, gas and water meters, data collection and communication systems, including automated meter reading (AMR) and advanced metering infrastructure (AMI); meter data management and related software applications; as well as project management, installation, and consulting services. For more information visit: www.itron.com.

About Badger Meter

Badger Meter is a leading manufacturer and marketer of products incorporating liquid flow measurement and control technologies, developed both internally and with other technology companies, as well as the leader in providing digital connectivity to AMR/AMI technologies. Its products are used to measure and control the flow of liquids in a variety of applications.

Certain statements contained in this news release, as well as other information provided from time to time by the Company or its employees, may contain forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. The words "anticipate," "believe," "estimate," "expect," "think," "should" and "objective" or similar expressions are intended to identify forward looking statements. All such forward looking statements are based on the Company's then current views and assumptions and involve risks and uncertainties that include, among other things:

* the continued shift in the Company's business from lower cost, manual read meters toward more expensive, value-added automatic meter reading (AMR) systems and advanced metering infrastructure (AMI) systems;

* the success or failure of newer Company products, including the Orion[R] radio frequency AMR system, the Galaxy[R] fixed network AMI system and the low profile Recordall[R] Model LP disc series meter;

* changes in competitive pricing and bids in both the domestic and foreign marketplaces, and particularly in continued intense price competition on government bid contracts for lower cost, manual read meters;

* the actions (or lack thereof) of the Company's competitors;

* changes in the Company's relationships with its alliance partners, primarily its alliance partners that provide AMR/AMI connectivity solutions, and particularly those that sell products that do or may compete with the Company's products;

* changes in the general health of the United States and foreign economies, including, to some extent, housing starts in the United States and overall industrial activity;

* increases in the cost and/or availability of needed raw materials and parts, including recent increases in the cost of brass castings as a result of increases in commodity prices, particularly for copper and scrap metal, at the supplier level and resin as a result of increases in petroleum and natural gas prices;

* the Company's expanded role as a prime contractor for providing complete AMR/AMI systems to governmental entities, which brings with it added risks, including but not limited to, Company responsibility for subcontractor performance; additional costs and expenses if the Company and its subcontractors fail to meet the agreed-upon timetable with the governmental entity; and the Company's expanded warranty and performance obligations;