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    2010 Cisco Systems, Inc. All rights reserved. 1

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    John Chambers,Chairman and CEO, Cisco

    "Networking technology will serve asthe platform of a smart, more secure

    energy gridfor the 21st century. Cisco

    is uniquely positioned to provide a

    converged Smart Grid communications

    fabric and to assist our utility customers

    with the kind of business transformation

    that will enable the efficient, effective

    transmission of energy and deliver

    entirely new, environmentally-friendly

    services to consumers."

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    !Renewablegeneration

    !Distributed generation!New fossile

    technologies! New nuclear

    reactors! CCS for coal-firedgeneration

    !Rising energy cost!Energy-efficient

    appliances!Smart meters and

    time-of-use tariffs!Smart homes and

    appliances

    !Push forrenewables

    !CO2 reductiontargets

    !Efficiency targets forappliances

    !Increasedcompetition

    !Electric vehicles!Virtual storages

    like heat pumps,pools etc.

    Intelligent ElectricityGrids

    !Automated processes!Bi-directional electricity flows!Super-conduction lines

    !Reduced grid losses!High reliability

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    =/2'Cisco Smart Grid52L-,*3-33$'M3-#90*3F0#=$7*033$'*3F#$4/#H./H#$

    !Architect end-to-end IP-based communications platform integratedwith the power grid from generation to consumption

    ! Converge utility systems and processes across all key elements of thegrid to increase grid intelligence and efficiency

    ! Deliver increased grid reliablity, resiliency, power quality and security! Enable the Smart Grid to become a platform for energy service

    innovation

    Transform energy production, distribution and consumption using an end-to-end IP Platform to sustainably meet the worlds future energy needs

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    6#)'/70%*+,"+?-+7%'?

    Incorporation of KeyGrid Intelligence

    Functions

    ConsumerParticipation in

    Energy Management

    Smart Grid as anInnovation Platform

    New Business &Service Models for

    Utilities

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    CISCO Operating

    SystemItron Meter Data

    Concentrator

    @#$%-/$7%*+7Itron / Arch RockO/#$/-9*': "04/#0*/:-"#*02#-4/*-"$#/3-#4/%0

    LANHAN WAN

    - METER -

    - COMS

    ReferenceDesign -

    - MDM-

    - NMS -

    IP- END-TO-END -

    CISCO FIELD ROUTER

    The purpose of the agreement is to jointly developthe next-generation architecture and technology

    leveraging Itrons existing OpenWay smart meteringplatform and Ciscos networking and cyber security

    technology and expertise. The resulting referencedesign will enable utilities to be in compliance withthe proposed North American Electric Reliability

    Council cyber security requirements and NationalInstitute of Standards and Technology cyber security

    guidelines.

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    Today! Analog infrastructure made up of disparate systems! Generation mustfollow demand to ensure balanced grid! No dynamic pricing! No way to help change behavior! Hard to effectively integrate unpredictable renewable

    resources

    Future! Smart, reliable digital infrastructure supports a new

    energy future

    ! Generation drivesdemand! Cheaper energy prices when the wind blows! Energy optimization technologies! Easier integration of renewables

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    AB3,#%/2C7%*#Cisco - !)+2)+*+E3%-4/*#0%$/:$1=&%*330%$7*033;-/-P30&09**

    "President Medvedev's vision of transforming economic development through

    innovation is closely aligned with Cisco's belief that the innovative application of

    technology can have a positive impact on national productivity and

    competitiveness," John said. "Our $1 billion commitment and investment in this

    exciting project achieves our overall vision of growing jobs, aligning our business

    to new growth areas and investing in countries with a focus on innovation,

    education and infrastructure. Russia is clearly doing just that

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