AEM Turin Signs IBM for 37 Million Euro Automated Metering Management System

Contract for More Than 600,000 Meters and Telemetering System

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ARMONK, NY & TURIN, ITALY - 30 Oct 2006: AEM Distribuzione Torino, an Italian electricity company owned by AEM Torino and quoted in the S&PMIB index, has signed a EUR 37 million three-year agreement with IBM, (NYSE: IBM) for more than 600,000 Enel metering counters in a comprehensive, integrated automated meter management (AMM) solution. All of AEM Distribuzione Torino's traditional meters will be replaced by 2009.

The remote management capability solution brings significant benefits to customers who will be able to monitor actual electricity and gas consumption in their homes and will no longer have to wait for a meter reader. Over time, the solution will allow the introduction of highly customised flexible pricing options, bringing even more control over energy consumption to AEM Distribuzione Torino customers.

Today's agreement with AEM Distribuzione Torino is another major transformation deal in the automated meter management market, leveraging the AMM alliance between IBM and Enel, Italy's main utility company, and another significant step in the utility industry's move toward building an Intelligent Utility Network. IBM has been working with many utilities around the world on defining and implementing Intelligent Grid strategies for their businesses.

An Intelligent Grid provides utility companies with on-demand data and information that can enhance service to customers and improve electric power line grid planning, operations and maintenance. And that, in turn, can contribute to fewer and shorter outages, better customer service, improved operating costs and security, and higher productivity.

In March 2004, IBM and Enel announced an alliance to deliver Enel's advanced AMM system solutions to utilities worldwide. The agreement combines IBM's global delivery capability, systems integration skills and business transformation services, with Enel's expertise in electricity distribution, involving the use of advanced hardware and software systems for the management of energy consumption data.

The contract announced today leverages the breadth of IBM's capabilities in consulting and integration services to help optimise the business performance of AEM Distribuzione Torino. This is just one example of IBM's range of services for the utilities industry, and this solution can be extended to other areas including heat, hot water and security.

"We are seeing a distinctive uptake in the installation and use of 'smart' meters and Automated Meter Management programs as the cornerstone for building an Intelligent Utility Network," said Guido Bartels, General Manager, IBM Global Energy and Utilities Industry. "We're thrilled to be working with AEM Turin on this initiative, which brings IBM's vision of Intelligent Grids to life, where utility companies are able to view and respond to the health and status of their entire network, in real-time. This is a prime example of teaming to innovate."

"This contract," says Livio Gallo, Infrastructure and Networks Director, Enel, "is a further confirmation of Enel's technological leadership in the area of electronic metering. So far, more than 29 million Enel clients have an automated meter installed, and about 28 million already benefit from the advantages of electronic metering in the unique system patented by Enel."

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