Itron Positions for Growth in China, Expands Heat and Water Meter Production in Suzhou

LIBERTY LAKE, Wash.—May 22, 2012—Itron, Inc. (NASDAQ: ITRI) announced today that it is strengthening its presence in China with the grand opening of its manufacturing facility in Suzhou Industrial Park, China. Itron's Suzhou factory supports three major product lines: residential water meters, industrial water meters and residential heat meters, supplying both Chinese and global markets.

"Our continued investment in Itron's heat and water meter business in Suzhou is indicative of our strong commitment to the Chinese market," said LeRoy Nosbaum, Itron president and chief executive officer. "This marks an important step forward as we sharpen our focus on delivering local products that meet local needs and provide a platform for building a sustainable future."

With its increasing capabilities in Suzhou, Itron is equipped to manufacture sophisticated heat metering products that will assist Chinese utilities with achieving energy reduction objectives. One of the major goals of the Chinese government's current Five Year Plan encourages decreasing energy consumption by 16 percent as compared with 2010 levels and by 32 percent as compared with 2005 levels*. In line with the plan published by the State Grid Corporation of China in 2009, initial smart grid constructions and interactive service systems will be deployed before 2015.

In addition to heat meters, Itron's Suzhou facility produces water meters for residential as well as commercial and industrial applications. This technology aims to reduce water wastage and empower water providers with the critical information they need to better manage vital water resources.

"Accurate and reliable data are crucial to achieving energy reduction and water management targets," said Marcel Regnier, Itron chief operating officer, Water Division. "With the ceremonial opening of our factory in Suzhou, Itron is enthusiastically ready to provide Chinese clients with cutting-edge offerings that will help them address real business challenges."

Aside from continuing to produce residential heat meters for the North China market, the Suzhou factory will also design and produce Itron's next-generation heat meter, Ultramaxx, by the end of this year.

* Energy consumption will decrease to the equivalent of 0.869 tons of coal per 10,000 RMB GDP, which represents 16% less than 2010 standards and 32% less than 2005 standards (Source: 2011 State Council Report).