Itron and Avista Collaborate on Smart Grid Demonstration Project in Pullman, Wash.

Itron Inc. (NASDAQ: ITRI) announced today that it is one of several partners that will work with Avista (NYSE: AVA) on its smart grid demonstration project in Pullman, Wash. The Pullman project, part of the larger Pacific Northwest Smart Grid Demonstration Project being led by Battelle, will give customers in Pullman a role in testing technology and shaping smart grid implementation across our region.

The goal of the project is to use smart grid technologies, including advanced metering technology and enhanced utility communication, to automate parts of the energy distribution system, in order to allow customers to monitor their energy consumption, increase power grid reliability, incorporate renewable energy sources and provide shorter restoration times for local outages.

“Avista is pleased to be working with Itron to incorporate smart metering and data management solutions, which are key to preparing the electric distribution system for future technologies,” said Don Kopczynski, vice president of transmission and distribution operations for Avista.

Avista will team up with several regional entities for the $38 million Pullman project, including the City of Pullman and cost-share partners Itron, Washington State University, Hewlett-Packard and Spirae.

Smart meters will be used to provide detailed energy usage data, reduce outage response times, and ensure power reliability. Itron’s meter data management solution will help provide analytics to optimize distribution system reliability in the area. It can also be utilized to engage consumers and transform energy usage through a variety of future demand response, load management and energy efficiency programs.

“We are excited to have yet another forward-looking utility choose an Itron solution as it looks to realize the benefits of the smart grid,” said Philip Mezey, Itron North America senior vice president and COO. “Avista joins a growing list of utilities demonstrating how advanced technology will allow providers to better understand and manage energy delivery.”

About Itron:

At Itron, we’re dedicated to delivering end-to-end smart grid and smart distribution solutions to electric, gas and water utilities around the globe. Our company is the world’s leading provider of smart metering, data collection and utility software systems, with nearly 8,000 utilities worldwide relying on our technology to optimize the delivery and use of energy and water. Our offerings include electricity, gas, water and heat meters; network communication technology; collection systems and related software applications; and professional services. To realize your smarter energy and water future, start here: www.itron.com.

About Avista:

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 355,000 customers and natural gas to 315,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. Avista’s primary, non-regulated subsidiary is Advantage IQ. Our stock is traded under the ticker symbol “AVA.” For more information about Avista, please visit www.avistacorp.com.