EAS.L Regulatory News (EAS)

Energy Assets Group plc

("Energy Assets" or the "Group")

Exciting New Joint Development With Elster

Energy Assets Group plc (LSE: EAS.L), the largest independent provider of industrial and commercial (I&C) gas metering services in the UK by number of meters under management, and Elster, a world leading producer of advanced metering products and intelligent metering solutions, have joined forces entering into an agreement for the long term supply of large capacity gas meters together with a joint commitment to work together in the development of absolute encoder technology for the UK I&C gas market.

Absolute encoder technology is widely used across the US and parts of mainland Europe but has not been widely introduced in the UK gas sector to date. The technology uses the transfer of light to determine the position of a meter index and to deliver an absolute read, providing the benefit of remote data collection which is equivalent in accuracy to an actual visual manual reading.

Elster currently plays a major role in the Energy Assets supply chain and has been a key business partner in the growth of the Group. The development activity to date has involved a joint project team working to develop a specific variant to Elster's standard absolute encoder technology that can interface with Energy Asset's own Safir data logger thus providing a unique solution to the Group. This development work will be covered by a 12 month exclusivity agreement between Energy Assets and Elster on the interface method which will predominantly apply to the Elster rotary and turbine range but can also apply to lower capacity diaphragm meters. The new encoder interface is due for release to general production later in 2013.

In addition, over the last 18 months the Energy Assets technical team has provided field and application support to the Elster R&D team in their development of a new diaphragm meter technology with consumption data logging and communication capability. The meter has the flexibility of multiple transfer methods to suit customer specific applications and, as a product, is therefore aligned to Energy Assets own technology strategy. Energy Assets technical competence and industry knowledge has proven to be a positive factor in the development program and the meter will be added to the extensive technology and metering range provided by the Group when it is launched later this year.

Commenting on the Elster relationship and the exciting new development agreement, Phil Bellamy-Lee, Chief Executive of Energy Assets said:

"Elster and Energy Assets have worked closely together for many years and both businesses recognise the merit of two market leaders joining forces to develop next generation products and technologies for the future benefit of the UK I&C market. We are delighted that Elster, a giant in our sector, has chosen Energy Assets as their strategic partner and we are confident that the partnership will continue to evolve as both seek further innovation within our respective areas of expertise."

Steve Case, Elster's European Director of Business Development, commented:

"Energy Assets are an obvious strategic partner for Elster as one of the leaders in the UK I&C metering market. Sometimes it takes two determined businesses to take products that stand up on their own and combine them to deliver further innovation and benefit for customers."

Enquiries

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Notes to Editors:

Energy Assets provides gas metering and related services in the I&C segment of the UK gas market and is the largest independent provider of I&C gas metering services in the UK (by number of meters under management). The Group offers gas suppliers and end-user consumers of gas a broad spectrum of metering services from the provision and management of new and replacement meters through its MAM Services division to the procurement and project management of related gas infrastructure works and the collection and provision of gas consumption data through the Group's Siteworks and AMR divisions.