Sensus Metering Systems acquires assets of AMDS

Raleigh, NC, June 12, 2006 — In keeping with its strategy of expanding its automatic meter reading product portfolio and addressing increasing market demands for advanced metering infrastructure (AMI), Sensus Metering Systems Inc. (Sensus) announced that it has entered into a definitive agreement to purchase the assets of Advanced Metering Data Systems LLC (AMDS) located in New Orleans, LA.

“The purchase of AMDS’ assets takes us to the top level of today’s radio- frequency (RF) fixed network AMI systems and complements our current metering and automatic meter reading (AMR) systems and services,” says Dan Harness, CEO and president of Sensus.

Sensus has marketed AMDS’ technology to the electric utility and combined utility markets in North America for the past 18 months under an exclusive agreement. The system is promoted as FlexNet with AMDS Connect AMI System. Following the closing of the sale, the system will be promoted solely under the Sensus name. The AMDS fixed network RF system features full two-way communications directly with electric meters and enables functions such as remote meter programming and remote meter disconnect/connect. The system’s two-way capability also permits it to work under the system coverage umbrella with other compatible technologies such as smart thermostats and demand response components.

These full two-way system capabilities are designed to enable utilities to manage their distribution networks for the foreseeable future and to address the Smart Metering initiatives underway in North America. The system also features one-way fixed network capability for gas and water meter endpoints.

The asset purchase agreement, signed in early June, provides that Sensus will acquire substantially all of the assets and assume certain identified liabilities of AMDS for $45.4 million in cash at closing and the payment of additional cash consideration if the acquired business achieves certain performance targets through March 2011.

In addition, pursuant to a Subscription Agreement with AMDS, Sensus Metering Systems (Bermuda 1) Ltd., Sensus’ parent, will issue certain preference shares to AMDS, which are subject to the performance of the acquired business over a five-year period following the closing. Sensus will finance the transaction with equity contributions from Sensus’ current principal investors and cash on hand.
Closing of the acquisition is subject to the satisfaction of certain conditions, including obtaining certain governmental approvals.

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