SPOKANE, WA., February 28, 2007 - Itron Inc. (NASDAQ: ITRI) announced today that it has formed a development partnership with SAP® AG to offer a complete, pre-integrated solution for the collection, management, analysis, billing, and customer service for multiple vendors’ smart metering/advanced metering infrastructure (AMI) systems. SAP has 33% of the market share of Enterprise Resource Planning (ERP) and 65% for CIS for utilities outside of the U.S. and nearly 20 percent domestically.

Itron will provide the technical integration with advanced metering infrastructure (AMI)/smart meter systems and deliver commercial-ready meter data and key analytic tools to SAP® applications. SAP will provide financial, billing, customer service and related commercial processes such as market messaging integration, energy settlement and enterprise asset management.

This solution will solve the many systems challenges posed by smart metering systems such as the operation of multiple vendor collection systems, large volumes of interval data, remote disconnect/reconnect, on-demand reads, complex billing calculations, and asset management. The approach will utilize web services integration between Itron’s flagship meter data management product (Itron Enterprise Edition) and the energy data management, customer relationship and billing, market messaging, and asset management capabilities of SAP applications.

The partnership will allow seamless access to metering devices regardless of the technology and end-to-end integration of technical and commercial business processes within the utilities industry. SAP customers will receive a best-in-class solution to a key utility problem. In addition, the solution will help the customer cover all processes from the meter to the backend system.

“This relationship represents a long-term commitment by SAP and Itron to synchronize our product road maps and deliver a true end-to-end business process solution,” said Philip Mezey, senior vice president and COO for Itron domestic operations. “We will be able to combine our knowledge applications to bring forecasting, fraud detection and distribution asset analysis to the table. This is smart thinking and a smart approach to AMI and smart metering and we couldn’t be more pleased to team with SAP.”

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.

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