ESCO Announces AMI System Expansion at CFE in Mexico

ST. LOUIS, Dec. 27, 2010 /PRNewswire/ -- ESCO Technologies Inc. (NYSE: ESE) today announced that Mexico's electric utility Federal Commission of Electricity (CFE) has issued an additional purchase order for Aclara PLS Inc.'s TWACS® power-line technology through Ambar Electroingenieria, Aclara's AMI distributor for Mexico, and prime contractor for the entire project. The initial, prime contract was awarded in December 2009.

Aclara's TWACS technology is currently being deployed as part of CFE's Advanced Metering Infrastructure (AMI) project. CFE is Mexico's single electric utility provider, servicing nearly 34 million customers countrywide.

This follow-on purchase order provides an expanded deployment of Aclara's pole-mounted and socket-type TWACS AMI solution in Acapulco, an important seaport serviced by CFE's South-Central Division, to support the utility's AMI project. A key feature of this AMI implementation is the installation of in-home displays that will allow CFE to enhance its customer service through improved communications.

The initial purchase order in December 2009 was for approximately 90,000 meters, along with an option for an additional 90,000 meters available under the original contract. This follow-on order represents the additional 90,000 units. These combined purchase orders represent the largest individual contract ever placed by CFE for a two-way AMI communications system, and makes Aclara the leading AMI technology supplier to this utility. CFE plans to deploy new metering end-points in several major cities in Mexico over the next several years to utilize state of the art AMI features that include: asset modernization, customer service upgrades, remote meter reading, interval read capabilities, outage management, aggregate demand, energy balance, voltage quality and other cost-savings and efficiency solutions.

As noted with the original award, during the initial competitive evaluation process, Aclara's technology was the only solution that met all of CFE's technical requirements. TWACS proved its ability to provide two-way communications with fast response over existing power lines, while demonstrating scalability to millions of end points. CFE will use TWACS to read residential and commercial meters.

"It has been a great pleasure working on this AMI project with CFE as they continue to implement the TWACS technology," said Gary Moore, Chief Operating Officer for Aclara. "This follow-on order demonstrates CFE's satisfaction with our proven technology and clearly enhances our strategic partnership with this progressive utility. We look forward to continuing a productive, long-term relationship with CFE as it moves forward with its efforts to implement AMI and Smart Grid Technology throughout Mexico."

The TWACS system is a proven, fixed-network solution that uses patented technology to transmit data over power lines. TWACS offers two-way communication to electric meters and provides timely and accurate billing information, load control, demand response, and outage detection and assessment. With this system, utilities can effectively manage customer data and reduce costs while enabling innovation and providing superior customer service.

Forward-Looking Statements

Statements in this press release regarding the likelihood, size and timing of CFE's anticipated future deployment, and any other written or oral statements which are not strictly historical are "forward-looking" statements within the meaning of the safe harbor provisions of the federal securities laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update. The Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment including, but not limited to: the timing and content of future purchases of the Company's products by CFE; the Company's successful performance of requirements for CFE; changes in CFE demand or financial constraints impacting CFE; technical difficulties; delivery delays or defaults impacting the Company's contracts; and termination for convenience of Company contracts.

About ESCO

ESCO, headquartered in St. Louis, is a proven supplier of special purpose utility solutions for electric, gas and water utilities, including hardware and software to support advanced metering applications and fully automated intelligent instrumentation. In addition, the Company provides engineered filtration products to the aviation, space and process markets worldwide and is the industry leader in RF shielding and EMC test products. Further information regarding ESCO and its subsidiaries is available on the Company's web site at www.escotechnologies.com.

About Aclara

The Aclara brand represents one of the industry's leading Intelligent Infrastructure™ technologies for providing device networking, data-value management and customer communications to water, gas and electric utilities globally. Over 500 utilities in nine countries rely on proven Aclara solutions to connect with their customers. Aclara is part of the Utility Solutions Group of ESCO. Further information is available on Aclara's web site at www.Aclara.com .

SOURCE ESCO Technologies Inc.