MIRA INFORM REPORT

Report Date :

17.03.2011

IDENTIFICATION DETAILS

Name :	ITRON INC (ITRON)
Registered Office :	1780 Barnes Blvd Sw Tumwater Wa 985120410
Country :	United States
Financials (as on) :	31.12.2010
Date of Incorporation :	01.12.1977
Legal Form :	Corporation for Profit
Line of Business :	Provides products and services for the energy and water markets worldwide

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - UNITED STATES
POLITICAL DATA	ECONOMIC DATA
Form of Government: Federal Economic Risk: Nil	Currency: USD Branch Situation: Stable

IDENTIFICATION
Comments on data supplied:	Dear Client, Your order was on Itron Inc, at address 313 North Hwy 11 West Union, SC 29696. We have learned that this is a non incorporated business unit of Walmart Stores Inc. The legal address of incorporation is in Washington, and the corporated headquarters are located at 2111 North Molter Road Liberty Lake, WA 99019 United States.That is why we proceed to use these as the addresses for the operative and legal address.
Legal Name:	Itron Inc (Itron)
Trade Name:	Itron
Legal Address	1780 Barnes Blvd Sw Tumwater Wa 985120410
Operative Address	2111 North Molter Road Liberty Lake, Wa 99019, U.S.
Telephone:	+1 (509) 924-9900	ID :	600337134
Fax:	+1 (509) 891-3355	Legal Form:	Corporation for Profit
Email:	info@itron.com	Registered in:	Washington
Website:	https://www.itron.com	Date Created:	1977
Manager:	Malcolm Unsworth, Chief Executive Officer	Date Incorporated:	December 01, 1977
Staff:	9,500	Stock:	40,509,260
		Value:	No Par Value
Activity:	Provides products and services for the energy and water markets worldwide

BANKS
Name of the Bank	U.S. BANK NATIONAL ASSOCIATION
Name of the Bank	PARK NATIONAL BANK
Name of the Bank	WELLS FARGO BANK, NATIONAL
BUSINESS
PRINCIPAL ACTIVITY
	The company provides products and services for the energy and water markets worldwide. It produces electricity, gas, water, and heat meters; and various other associated metering products for residential, commercial and industrial (C&I), and transmission and distribution customers.
Products/Services description:
	Electronic and smart electricity meters Gas and water meters Electricity Gas and water automated meter reading (AMR) Advanced metering infrastructure (AMI)
Sales are:
	Wholesale
Clients:
	Various industries
Operations area:
	National, International
The company export to Worldwide
The subject employs 9,500 employee(s)
PAYMENTS
	regular
LOCATION
Headquarters
	The company is headquartered at 2111 North Molter Road Liberty Lake, WA 99019, U.S.
Branches:
	The company has several offices throughout the U.S.

Shareholders - Manager - Related Companies
Listed at the stock exchange:
	YES
Capital:
	% of Shares Held by All Insider and 5% Owners:1% % of Shares Held by Institutional & Mutual Fund Owners:90% % of Float Held by Institutional & Mutual Fund Owners: 90%Number of Institutions Holding Shares:294
Shareholders Parent Company(ies):
	Top Institutional Holders Blackrock Group Limited Vanguard Group, Inc. (The) Invesco Ltd. Pictet Asset Management Ltd Earnest Partners Llc Waddell & Reed Financial Inc. Blackrock Institutional Trust Company, N.A. State Street Corporation Deutsche Bank Aktiengesellschaft Blackrock Fund Advisors Top Mutual Fund Holders Powershares Exhg Traded Fd-Powershares Water Resources Waddell & Reed Advisors Fds-Science & Technology Fund Munder Mid-Cap Core Growth Fund Vanguard Small-Cap Index Fund Fidelity Small Cap Stock Fund Vanguard Total Stock Market Index Fundivy Science & Technology Fund Spdr S&P Calamos Growth Fund Ishares S&P Midcap 400 Index Fd
Management:
	Mr. Malcolm Unsworth,CEO Mr. Steven M. Helmbrecht, Chief Financial Officer and Sr. VP Mr. Philip C. Mezey,Sr. VP and Chief Operating Officer of Itron North America Mr. Marcel Regnier, Sr. VP and Chief Operating Officer of Itron International
Related Companies:
	Itron corporate headquarters are based in Liberty Lake, Washington,and its primary international office is based in Luxemburg. Moreover, it has different locations world wide. Itron Argentina SA  Itron-Australasia Pty Limited Itron Australasia Holdings Pty Limited Itron Australasia Technologies Pty Limited Actaris Pty Ltd Itron Austria GmbH Itron Holding Belgium SPRL Itron Management Services SA Contigea SA Itron Sistemas e Tecnologia Ltda Itron China Gas Holding Co. Ltd. (J.V. Majority) Itron Canada, Inc. Compañía Chilena de Medición SA Itron Metering Systems (Chongqing) Co., Ltd. (J.V. Majority) Itron Metering Systems (Suzhou) Co., Ltd. Itron Czech Republic s.r.o. Actaris Maleteknik A/S Itron S.A.S. Itron France Itron Holding France Itron Holding Germany GmbH Itron GmbH Itron Zähler & Systemtechnik GmbH Itron ZSO Beteiligungs GmbH Itron Unterstutzungskasse GmbH Allmess GmbH Heliowatt Unterstutzungseinrichtung GmbH JB Rombach Anlagenbau GmbH SEWA GmbH Thielmann Energietechnik GmbH Itron Holding Hungary Ganz Meter Company Ltd. Itron India Private Limited CG Actaris Electricity Management Private Limited (J.V. Majority) PT Mecoindo Itron Italia SpA Itron Metering Solutions Luxembourg SARL Itron Luxembourg SARL Itron Financial Services Company SARL Itron Distribucion, S.A. de C.V.

Financials - COMMERCIAL TRENDS AND FORECAST

The subject is a public company traded at the stock exchange NasdaqGS under ticker symbol "ITRI". Please find enclosed the financial statements.

We have contacted the company but nobody from the accounting department took the call.

Legal Fillings

There are 144 UCC** files listed with the Secretary of State of Washington.

There are 3 legal filings listed with the District Court.

Coady v. Itron Inc

Filed: February 23, 2011 as 2:2011cv00077 Updated: February 24, 2011 23:02:58

Plaintiff: Bill Coady

Defendants: Itron Inc, Malcolm Unsworth and Steven M Helmbrecht

Presiding Judge: Rosanna Malouf Peterson

Cause Of Action: m(a) Securities Exchange Act

Court: Ninth Circuit > Washington > Eastern District Court

Acoustic Technologies, Inc v. Itron, Inc.

Filed: March 24, 2010 as 1:2010cv10500 Updated: April 7, 2010 23:03:21

Plaintiff: Acoustic Technologies, Inc

Defendant: Itron, Inc.

Presiding Judge: Judge Nathaniel M. Gorton

Cause Of Action: Patent Infringement

Court: First Circuit > Massachusetts > District Court

Wallis v. Itron Inc

Filed: March 17, 2010 as 2:2010cv00071 Updated: April 7, 2010 16:07:12

Plaintiff: Stephanie Wallis

Defendant: Itron Inc

Presiding Judge: Judge Rosanna Malouf Peterson

Cause Of Action: E.R.I.S.A.-Employee Benefits

Court: Ninth Circuit > Washington > Eastern District Court

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

For information:

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating
Local credit bureau gave a Correct credit rate. The company is in Good Standing. This means that all local and federal taxes were paid on due date.
Final Opinion
	The company was founded 33 years ago and is currently employing 9.500 people, being considered a large sized company world wide. The company has numerous payment experiences, and the financial data found let us know that the company has grown and improved its profitability over the time. However, several legal fillings were found against the company. Due to the lawsuit made on the date May 25th 2011 by an investor in shares of Itron in the United States District Court for the Eastern District of Washington against Itron, Inc. over alleged violations of Federal Securities Laws concerning certain statements, we suggest working with GUARANTEES with this company. We strongly believe that this company should be reviewed in the next 6 months.

SUMMARY
FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public Records	NO
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	CORRECT

APPENDIX
Position
	Receptionist
Comments
	We contacted the company, and after unsuccessfully discussing some of the information with the secretary the got transferred to the accounting department, where nobody took the call. We left a voicemail, but we did not receive any answer yet.

Financial statement

come Statement

View: Annual Data

All numbers in thousands

Period Ending		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Total Revenue		2,259,271	1,687,447	1,909,613
Cost of Revenue		1,561,032	1,149,991	1,262,756
Gross Profit		698,239	537,456	646,857
	Operating Expenses
	Research Development	140,229	122,314	120,699
	Selling General and Administrative	304,762	271,542	295,972
	Non Recurring	-	-	-
	Others	69,051	98,573	120,364
	Total Operating Expenses	-	-	-
Operating Income or Loss		184,197	45,027	109,822
	Income from Continuing Operations
	Total Other Income/Expenses Net	(8,549)	(20,790)	2,986
	Earnings Before Interest And Taxes	175,648	24,237	112,808
	Interest Expense	54,904	70,311	80,735
	Income Before Tax	120,744	(46,074)	32,073
	Income Tax Expense	15,974	(43,825)	4,014
	Minority Interest	-	-	-
	Net Income From Continuing Ops	104,770	(15,049)	28,059
	Non-recurring Events
	Discontinued Operations	-	-	-
	Extraordinary Items	-	-	-
	Effect Of Accounting Changes	-	-	-
	Other Items	-	-	-
Net Income		104,770	(2,249)	28,059
Preferred Stock And Other Adjustments		-	-	-
Net Income Applicable To Common Shares		104,770	(2,249)	28,059

Income Statement

View Quarterly Data

All numbers in thousands

Period Ending		Dec 31, 2010	Sep 30, 2010	Jun 30, 2010	Mar 31, 2010
Total Revenue		614,563	575,968	569,460	499,280
Cost of Revenue		435,750	391,761	393,136	340,385
Gross Profit		178,813	184,207	176,324	158,895
	Operating Expenses
	Research Development	40,129	34,038	33,022	33,040
	Selling General and Administrative	84,002	71,907	74,259	74,594
	Non Recurring	-	-	-	-
	Others	17,592	16,882	16,766	17,811
	Total Operating Expenses	-	-	-	-
Operating Income or Loss		37,090	61,380	52,277	33,450
	Income from Continuing Operations
	Total Other Income/Expenses Net	(3,553)	(4,257)	(314)	(425)
	Earnings Before Interest And Taxes	33,537	57,123	51,963	33,025
	Interest Expense	12,688	13,328	13,965	14,923
	Income Before Tax	20,849	43,795	37,998	18,102
	Income Tax Expense	(1,126)	14,687	11,098	(8,685)
	Minority Interest	-	-	-	-
	Net Income From Continuing Ops	21,975	29,108	26,900	26,787
	Non-recurring Events
	Discontinued Operations	-	-	-	-
	Extraordinary Items	-	-	-	-
	Effect Of Accounting Changes	-	-	-	-
	Other Items	-	-	-	-
Net Income		21,975	29,108	26,900	26,787
Preferred Stock And Other Adjustments		-	-	-	-
Net Income Applicable To Common Shares		21,975	29,108	26,900	26,787

Balance Sheet

View: Annual Data |

All numbers in thousands

Period Ending		Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Assets
Current Assets
	Cash And Cash Equivalents	169,477	121,893	144,390
	Short Term Investments	-	-	-
	Net Receivables	427,013	358,710	353,085
	Inventory	208,157	170,084	164,210
	Other Current Assets	77,570	75,229	56,032
Total Current Assets		882,217	725,916	717,717
Long Term Investments		-	-	-
Property Plant and Equipment		299,242	318,217	307,717
Goodwill		1,209,376	1,305,599	1,285,853
Intangible Assets		291,670	388,212	481,886
Accumulated Amortization		-	-	-
Other Assets		28,242	26,745	32,258
Deferred Long Term Asset Charges		35,050	89,932	45,783
Total Assets		2,745,797	2,854,621	2,871,214
Liabilities
Current Liabilities
	Accounts Payable	397,512	327,790	299,583
	Short/Current Long Term Debt	228,721	10,871	10,769
	Other Current Liabilities	77,501	104,723	114,069
Total Current Liabilities		703,734	443,384	424,421
Long Term Debt		382,220	770,893	1,179,249
Other Liabilities		177,136	159,135	129,433
Deferred Long Term Liability Charges		54,412	80,695	102,720
Minority Interest		-	-	-
Negative Goodwill		-	-	-
Total Liabilities		1,317,502	1,454,107	1,835,823
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-
Redeemable Preferred Stock		-	-	-
Preferred Stock		-	-	-
Common Stock		1,328,249	1,299,134	951,007
Retained Earnings		135,020	30,250	50,291
Treasury Stock		-	-	-
Capital Surplus		-	-	-
Other Stockholder Equity		(34,974)	71,130	34,093
Total Stockholder Equity		1,428,295	1,400,514	1,035,391
Net Tangible Assets		(72,751)	(293,297)	(732,348)

Balance Sheet

ViewQuarterly Data

All numbers in thousands

Period Ending		Dec 31, 2010	Sep 30, 2010	Jun 30, 2010	Mar 31, 2010
Assets
Current Assets
	Cash And Cash Equivalents	169,477	148,114	137,371	123,418
	Short Term Investments	-	-	-	-
	Net Receivables	427,013	406,779	387,309	353,769
	Inventory	208,157	225,765	201,678	194,022
	Other Current Assets	77,570	72,371	65,336	77,835
Total Current Assets		882,217	853,029	791,694	749,044
Long Term Investments		-	-	-	-
Property Plant and Equipment		299,242	302,306	289,409	304,462
Goodwill		1,209,376	1,236,583	1,146,082	1,234,129
Intangible Assets		291,670	315,756	309,030	349,713
Accumulated Amortization		-	-	-	-
Other Assets		28,242	22,002	22,721	26,320
Deferred Long Term Asset Charges		35,050	49,612	67,684	86,728
Total Assets		2,745,797	2,779,288	2,626,620	2,750,396
Liabilities
Current Liabilities
	Accounts Payable	397,512	387,588	366,799	352,094
	Short/Current Long Term Debt	228,721	226,246	10,182	10,562
	Other Current Liabilities	77,501	90,555	97,664	120,572
Total Current Liabilities		703,734	704,389	474,645	483,228
Long Term Debt		382,220	461,697	663,159	702,266
Other Liabilities		177,136	128,430	145,814	144,359
Deferred Long Term Liability Charges		54,412	52,128	60,017	70,758
Minority Interest		-	-	-	-
Negative Goodwill		-	-	-	-
Total Liabilities		1,317,502	1,346,644	1,343,635	1,400,611
Stockholders' Equity
Misc Stocks Options Warrants		-	-	-	-
Redeemable Preferred Stock		-	-	-	-
Preferred Stock		-	-	-	-
Common Stock		1,328,249	1,321,287	1,315,067	1,308,031
Retained Earnings		135,020	113,045	83,937	57,037
Treasury Stock		-	-	-	-
Capital Surplus		-	-	-	-
Other Stockholder Equity		(34,974)	(1,688)	(116,019)	(15,283)
Total Stockholder Equity		1,428,295	1,432,644	1,282,985	1,349,785
Net Tangible Assets		(72,751)	(119,695)	(172,127)	(234,057

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.18
UK Pound	1	Rs.72.59
Euro	1	Rs.63.13

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.