Elster Provides Clarification Regarding Previous Announcement on Recent Win With Light SA

ESSEN, Germany, May 16, 2011 /PRNewswire/ -- Elster (NYSE: ELT) recently announced that Light S.A. (Light), a private utility providing electricity to the state of Rio de Janeiro, Brazil, has selected an advanced metering infrastructure solution from Elster to help increase energy efficiency, conserve resources, empower consumers and enhance distribution to customers currently without electric service. Elster previously announced that between March and July 2011, Light planned to deploy 20,000 Elster Garnet units.

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As of May 16, 2011, Elster had received purchase orders for approximately 1,600 Garnet units and single metering endpoint products to service a total of approximately 20,000 metering endpoints. To date, Elster has successfully delivered approximately 17,400 of the approximately 20,000 metering endpoints ordered by Light.

Light has indicated its intention to order and deploy addition Garnet units from Elster in the course of the year. However, at this time, Elster can not predict how many, if any, additional Garnet units Light will order.

Elster defines backlog as total open purchase orders. Elster defines contracted future revenues as total order backlog plus additional contract revenues under awarded contracts with an initial value of $500,000 or more.  Elster cannot predict how many purchase orders ultimately will be placed under these awarded contracts.

Revenues from Light in the first quarter of 2011 comprised less than one percent of the backlog of almost $523 million and less than 0.5 percent of the contracted future revenues of more than $1.05 billion which Elster reported for the first quarter of 2011.

Elster expects to include the remaining anticipated revenue from these purchase orders in the backlog it reports for the second quarter of 2011.

If additional orders from Light materialize, Elster would capture the revenues as contracted future revenues or backlog, according to its definitions. 

Elster's win with Light follows other recent contract awards for Elster in Brazil, including Saneamento Basico do Estado de Sao Paulo (SABESP) and Empresa Baiana de Aguas e Saneamento (EMBASA) water meters.

EMBASA will install 170,000 Elster water meters at residential and commercial locations, and SABESP will deploy 80,000 Elster water meters across its residential customer base. Revenues from these wins with EMBASA and SABESP will be captured as contracted future revenues in the second quarter of 2011 and moved into backlog as specific purchase orders are received.

About Elster

Elster (NYSE: ELT) is one of the world's largest electricity, gas and water measurement and control providers. Its offerings include distribution monitoring and control, advanced smart metering, demand response, networking and software solutions, and numerous related communications and services – key components for enabling consumer choice, operational efficiency and conservation. Its products and solutions are widely used by utilities in the traditional and emerging Smart Grid markets.

Elster has one of the most extensive installed revenue measurement bases in the world, with more than 200 million metering devices deployed over the course of the last 10 years. It sells its products and services in more than 130 countries across electricity, gas, water and multi-utility applications for residential, commercial and industrial, and transmission and distribution applications.

For more information about Elster, please visit www.elster.com.

SOURCE Elster

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