1. 1 Landis+Gyr Confidential Analyst Presentation November 2008`1 Confidential Company Overview & Update DRAFT November 2008 Cyber-Security & Interoperability Breakout - Michelle Mindala-Freeman National Town Meeting – July 14, 2009

2. 2 Landis+Gyr Confidential Introduction… + Many of Landis+Gyr customers have been early adopters of intelligent, automated metering systems + We design smart grid solutions for these customers & prospects that meet operational & financial objectives and consumers needs + We believe interoperability isn't an end – its an process that requires diligence in design & implementation to deliver real value + Security is paramount; however, delivering a secure smart grid is a journey…perhaps without a final destination + Our core approach is to deliver the right building blocks for an interoperable and secure smart grid – rapidly delivery technology at the pace of value - value to the utility, to the consumers and to this growing market

3. 3 Landis+Gyr Confidential Landis+Gyr – where we are the smart grid… Meters & Endpoints Communication Networks Data Management Application Demand Management Distribution Automation Deployment & Operations Services + 5,000 people in 30 countries with $1.3B+ in sales. + Over $1B invested in more than a dozen companies + 15+years of fixed network deployment and measurement automation experience + Global leader in metering – PG&E, PEPCO, SMUD, E.ON, CHED + Leader in fixed networks - 20M+ embedded endpoints - Oncor, Austin Energy, AEP Texas, Fortis Alberta

4. 4 Landis+Gyr Confidential Interoperability – a means or an end? + A smart grid [will] employ real-time, two-way communication technologies to allow users to connect directly with power suppliers. The development of the grid will create jobs and spur the development of innovative products that can be exported. + The greatest benefit from the smart grid will be interoperability that will open up every aspect of the generation, distribution, and use of energy to innovation. * Source: NIST Interim SG Standards June 09 + Products/ Services + Improved Competition + Time to Market + Customer Value

5. 5 Landis+Gyr Confidential Interoperability – what can we learn? + Internet analogy + Telecom analogy + Interoperability Plug and Play + Specifications Uniformity + Sameness Value

6. 6 Landis+Gyr Confidential How can we move forward faster? + Stay focused on drivers + Prioritize - set the value pace + Allow market forces to work + Drive, not stall, deployments + Leverage upgradability + Value to Consumers + Value between Systems + Value within the System + Scale with International Standards + Flexibility for different Utility conditions

7. 7 Landis+Gyr Confidential How is Landis+Gyr approaching Interoperability? + Develop for Value 1 st --- Interoperability at Head-End and HAN + Protect for the Future -- Secure upgradability – Meter, Comms & HAN + Create Scale – Supporting International standards & working groups – Promoting Common information/Data Model – Multispeak CIM + Evolve for next value phase -- Working to fill standards gaps / refine – Meter tables – Common PHY/MAC – Mesh routing protocols

8. 8 Landis+Gyr Confidential Security + Cyber security is a critical issue due to the increasing potential of cyber attacks and incidents against this critical sector as it becomes more and more interconnected. Cyber security must address deliberate attacks…[and] inadvertent compromises of the…infrastructure* + Key issues: – Risk mitigation & protection in current systems – Standards to assess & address risks in the system – Addressing future vulnerability as the grid evolves

9. 9 Landis+Gyr Confidential Landis+Gyrs Protections Today + Privacy, Accuracy & Authenticity of Information – AES encryption & protocol wrappers – Randomized Meshed Paths – Unique Channel Schemes – HAN leveraging ECC + Avoiding Disruption or Malicious Use of the Network – Role-based access control – Device registration and validation – Limited allowable / verified actions at the edge – Natural protection via network design

10. 10 Landis+Gyr Confidential No one can sit still… + Disruptions on a widescale today would take tremendous experimentation & determination, with limited results + However… – Aug 18, 2008 - Staged cyberattack exposes vulnerability in power grid – March 21 st, 2009 – Power Grid Is Found Susceptible to Cyberattack – April 8 th, 2009 - Electricity Grid in U.S. Penetrated By Spies – June 12 th, 2009 – Hacking will be demonstrated in July + The cat and mouse chase is on – system managers & vendors will improve security postures as exploits are developed

11. 11 Landis+Gyr Confidential An approach to ongoing protection Non-Repudiation – Proof of Origin and Receipt NR Providing Individual or System Identity Authentication Avoiding Disruption of Service Ensuring Information is Unaltered Availability and Integrity Keeping Information Secret Confidentiality

12. 12 Landis+Gyr Confidential Landis+Gyrs Top Recommended Security Practices + Implement strong security techniques, such as mutual authentication, cryptography & message integrity verification to protect information + Provide countermeasures to identify potential breaches, the areas affected, and a means for users timely reaction + Ensure protection of all user and credential information, allowing access according to designated rights. + Incorporate use of access controls to ensure access to certain data/functionality is allowed only to specific trusted entities + Train all employees who have access to AMI data or controls. + Perform ongoing 3 rd -party penetration testing to uncover vulnerabilities

13. 13 Landis+Gyr Confidential Thank you Michelle Mindala-Freeman VP, Marketing & Product Management, North Am Michelle.mindala@landisgyr.com