1. Metrology Regulatory and Obsolescence Strategy Andrea DavisBridget Berardinelli

2. Agenda  What is ANSI and NSF?  ANSI/NSF 61  ANSI/NSF 372  Reduction of Lead Drinking Water Act  Q&A  Obsolescence Dates  Promotional Programs

3. What is ANSI and NSF?  ANSI – American National Standards Institute –Oversees the development of voluntary consensus standards for products in the US –Accredits national standards developing organizations –Only US representative to International Organization for Standardization (ISO)  NSF – National Sanitation Foundation –A public health and environmental organization that provides standards development, product certification, auditing, education and risk management services –Developed more than 77 public health and safety standards

4. NSF/ANSI Standard 61  Drinking Water System Components – Health Effects –Covers all products in contact with drinking water (from source to tap) –Restricts intentional use of lead in any product to brass and bronze materials –Limits the amount of leachable contaminates from all drinking water products –Annex G – weighted average lead content of 0.25% (15 ppb) –Annex F – Reduces maximum lead leach limit by a factor of 3 (from 15 ppb to 5 ppb) for all NSF Standard 61 certified products Effective Date: July 1, 2012

5. NSF/ANSI Standard 372  Drinking Water System Components – Lead Content –Addresses weighted average (based on maximum 0.25%) lead content of products –Developed to address products outside the scope of NSF 61 In-line coffee machines Point-of-use treatment devices –Annex G (will retire in late 2013) now references 372 to continue the NSF Certification Mark for products that meet lead extraction and lead content requirements

6. Impacts of New Lead Leaching Limits (July 1, 2012)  Surveyed brass fittings, valves, water meters certified in 2010 with lead detections –40% contained lead > 0.25% 39% did not meet lower lead leaching limits –60% contained < 0.25% weighted average lead 17% did not meet lower lead leaching limits

7. Reduction of Lead Drinking Water Act  S.3874, Reduction of Lead in Drinking Water Act –New national law (amending the Safe Drinking Water Act or SDWA) –Requiring products in contact with drinking water to a 0.25% maximum lead content –NSF Standard 372 will provide independent third party verification to the law –Effective Date: January 4, 2014

8. Q&A  Are my water meters and other system components compliant with the new standards for lead content? 1.Sensus products bearing the BIA (Bialloy) or EB (Envirobrass) markings only comply with NSF Standard 372 to meet the requirements for the legislation requirements (do not comply with Annex F) 2.Sensus iPERL, accuSTREAM, OMNI and accuMAG products comply with legislation and NSF 61, Annex F  If I remove a meter (that doesn’t comply with the Reduction of Lead in Drinking Water Act) from service for testing or repair, can I put it back into the system? On January 4, 2014, if a meter is physically removed from service and it does not comply with the Reduction of Lead in Drinking Water Act, it cannot be re-installed. A compliant meter must be installed.

9. Q&A  Why has Sensus chosen to replace their bronze products with alternative materials (i.e. composite, coated iron, etc.) instead of low lead material? 1.New technology and materials enables us to provide our customers metrology products to meet the low lead laws while maintaining and exceeding the product excellence our customers have come to expect 2.The EPA’s contaminant level goal for lead in drinking water is set at zero, by using alternative materials that contain zero lead, we will be in compliance with all future changes to the NSF standards and government laws regarding lead

10. Residential Meter Obsolescence Dates ProductLast Order Date 5/8” through 2” PMM metersMarch 31, 2012 1-1/2” through 2” SR metersMarch 31, 2012 5/8” through 1” SR metersDecember 31, 2012 5/8” through 2” SR and PMM parts TBD (Minimum of 5-Year Notice)

11. Product Obsolescence Team  Team  Objectives –Identify “at risk” PMM and SR customers, volumes and revenue –Track converting customers –Develop program suggestions for to transition customers West – Scott SetzerMid-West – Bill Saunders South – Roger BrookshireMarketing – Andrea Davis North – AJ Casini

12. Promotional Programs  Product Obsolescence Team/Regional Managers work directly with Distribution  Focus on key accounts  Flexible, customized programs –Meter-based –Technology-based