ESCO subsidiary awarded $112 million contract from PPL Electric Utilities for AMR

ST. LOUIS, Feb. 4, 2002 — ESCO Technologies Inc. announced today that its Distribution Control Systems, Inc. (DCSI) subsidiary has received a contract from PPL Electric Utilities Corporation for an automatic meter reading system.

The contract will result in $112 million of sales assuming successful completion of a small-scale test in mid-April. The contract calls for deployment of DCSI’s TWACS® (Two-Way Automatic Communication System) to perform Automated Meter Reading (AMR) and other related functions.

Upon successful completion of the testing phase, DCSI’s system will support PPL Electric Utilities’ 1.3 million residential, commercial and industrial customers located in a 10,000 square mile area of eastern and central Pennsylvania. The territory includes a mix of urban, suburban and rural areas. The project is scheduled for completion in 2004.

Victor L. Richey, President and Chief Operating Officer of ESCO, stated, “We are extremely pleased that PPL Electric Utilities has chosen DCSI’s AMR system to serve its customers. This award reaffirms our belief that we are well positioned to serve the rapidly growing electric utility AMR market. We estimate the total U.S. market potential for AMR systems to be in excess of $6 billion.”

Richey continued, “This award, together with those received during the first quarter from other customers, brings DCSI’s total new orders in fiscal 2002 to approximately $150 million. Given our very strong backlog at DCSI, we expect continued strong performance in our Communications segment for some time to come.”

Michael Bray, President of PPL Electric Utilities, commented, “We believe AMR technology will enable us to continue our leadership position in customer service and satisfaction. Over the past two years, we did a thorough evaluation of all the technologies available. We determined TWACS® to be the most effective in meeting our requirements.”


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