LIBERTY LAKE, Wash. — June 15, 2010 — Itron Inc. (NASDAQ: ITRI), a world leader in smart metering and smart grid solutions, announced today that it has been selected by Iberdrola, Spain's premier energy group and one of the world's largest electricity utilities, for the first phase of its smart metering program. Itron will be responsible for the development and integration of an advanced meter management system, including head-end and meter data management software, as well as smart meters.

The implementation of Iberdrola's smart meter program is focused on developing a new open and interoperable solution based on the PRIME telecommunications protocol. This project will not only support smart metering functionalities but also progress toward the smart grid. The initial deployment will see the delivery of 100,000 meters to the city of Castellón, Spain, with the potential to expand to ten million meters countrywide. The first phase of the project is expected to run from July until the end of 2010.

This project, one of the largest and most important smart metering initiatives in Europe, marks a significant step for Iberdrola toward the building of the smart grid. Itron will be the unique supplier of the head-end and meter data management software for this first phase of the project, along with other manufacturers that will also supply PRIME-compliant smart meters. Itron's end-to-end solution offers a flexible and robust data infrastructure that will allow Iberdrola to optimize network management, reduce operational costs and enhance its quality of service for the benefit of consumers.

"Itron is delighted that its industry expertise and project experience will help lay the foundation for a state-of-the-art smart metering architecture in Spain," said Marcel Regnier, Itron International chief operating officer. "Itron offers a high-performance, scalable and future-proof system that will allow Iberdrola to manage a seamless evolution to large-scale deployment. We are confident that this project will showcase the benefits of Itron's smart metering solutions to both Iberdrola and its customers."