Sensus Metering Systems Bermuda 2 Ltd. (Sensus) has reported net sales of $140.4 million for the third quarter of fiscal 2009, compared with the net sales of $162.2 million in the year-ago quarter. It has also reported a net loss of $23 million for the third quarter of fiscal 2009, compared with the net loss of $5 million in the year-ago quarter.

EBITDA was $(7.4) million compared to $15.5 million in the corresponding prior year period. Adjusted net sales increased from $170.0 million to $177.5 million, representing a 4% improvement over the same quarter in the corresponding prior year period, due to the significant increase in AMI contract deployments delivered during the period. Adjusted EBITDA was $20.6 million compared to $18.3 million in the corresponding prior year period.

Sensus continues to make great progress in supporting its utility customers and advancing their smart grid initiatives, including AMI, smart metering and demand response. Deployment of Sensus AMI systems at utilities currently under contract is accelerating. New AMI contracts were announced during the reporting period adding to our AMI base. During the last quarter, Sensus reached a significant milestone with more than two million SmartPoints and meters installed and communicating live, real-time information to utilities.

“The last quarter has seen significant challenges introduced by expanding AMI markets coupled with a weakening global economy. We have proactively focused on adjusting the fundamentals of our business to be successful in these challenging times and will continue to carefully align to the changing demands and continue to build on our strong financial foundation,” said Peter Mainz, chief executive officer and president of Sensus.

Key Highlights for the Fiscal Third Quarter

4% increase in Adjusted Net Sales1 to $177.5 million.

12% increase in bookings to $199 million and Adjusted Net Sales1 book-to-bill2 of 1.1.

35% increase in backlog to $123.9 million.

$500 million potential future revenue from AMI contracts, representing six million endpoints.

Several new AMI contracts signed representing in excess of 600,000 endpoints.

Cost Management Initiatives:

89 basis point improvement in SG&A as a percentage of Adjusted Net Sales.

6% global headcount reduction through restructure initiatives.

13% increase in Adjusted EBITDA.

46% improvement in year-to-date GAAP operating cash flow.

$27.6 million of cash-on-hand at December 27, 2008.