NEWS RELEASE
SEP 14 2006

Chatham-Kent Hydro Gets Government Approval
for Full Smart Metering Roll Out
TUNet to serve as communications backbone
for landmark advanced metering project

Vancouver, BC, Canada – September 14, 2006 – Tantalus Systems Corp. is pleased to announce that Chatham-Kent Hydro (C-K Hydro) has received approval from the Ontario Ministry of Energy to move forward with full deployment of a TUNet® (Tantalus Utility Network) smart metering solution. The approval establishes C-K Hydro as one of the first Ontario Local Distribution Companies to receive government authorization for mass implementation of smart metering technology. The project calls for all of C-K Hydro’s 32,000 residential and commercial & industrial customers to be activated by December 2007.

The decision follows an 18-month pilot project that resulted in significant operational improvements and identified potential energy reductions among 1200 customer participants. It also demonstrates accordance of TUNet with the Ontario government’s smart metering guidelines, a prerequisite for full deployment.

“Our objective has always been to exceed the government’s Smart Metering goals and also deliver operational improvements,” said Dave Kenney, President of Chatham-Kent Hydro. “After thorough investigation of leading technologies and rigorous field tests, we decided that TUNet best meets the Ministry of Energy’s requirements, plus it gives us the tools to automate our distribution system. TUNet proved to be a reliable, end-to-end solution that easily interfaced with critical billing, customer care, and outage management modules and our Meter Data Management / Repository. It also allows us to potentially share the network with other electric, water, and gas utilities in the region.”

Driving Ontario’s Smart Metering initiative is the goal of achieving provincial energy self-sufficiency, optimizing conservation, and giving consumers the ability to better manage energy consumption and their electric bills. It calls for all 4.3 million meters in the province to be equipped with advanced metering technology by 2010.

Kenney cites a third-party report that validated that C-K Hydro was able to deliver a smart meter AMI system at under $2.00 per household, forty percent of the cost targeted by other Ontario electric distribution companies for providing service within a smart metering framework, and an anticipated net reduction of 6% on electric heating bills per participating customer.

“We expect 50% of TUNet’s value to be gained outside of meter reading through operational improvements, reduced truck rolls, better outage management, and fewer estimated bills or billing discrepancies,” Kenney added.

“Chatham-Kent has proven that when deployed effectively and integrated with other utility systems, the right smart metering technology can be a strong enabler and lead to cost savings and energy conservation,” said Eric Murray, Tantalus’ Senior Vice President of Sales & Business Operations. “We are pleased that the Ministry of Energy also recognizes their success and has allowed C-K Hydro to proceed with their program of full deployment. It’s an important milestone. We’re proud to work alongside such an innovative utility and technology partners in the drive to help Ontario achieve energy self-sufficiency and provide superior customer service.”

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About Chatham-Kent Hydro

Chatham-Kent Hydro's mandate is to provide safe and reliable electricity at competitive rates. Chatham-Kent Hydro is at the forefront of Ontario’s Smart Metering initiative and was recognized by Ontario’s Minister of Energy for its achievements and for its vision and accomplishments in the area of energy conservation. The Utility Planning Network awarded it first place in the 2005/06 Metering Awards Program™ for its Metering Data Integration Initiative, an international peer-reviewed competition that recognizes utilities for their technological innovation and success in helping utilities achieve customer service and operational excellence. Chatham-Kent Hydro is a Chatham-Kent Energy company , whose sole shareholder is the Municipality of Chatham-Kent. Please visit: www.ckenergy.com

About Tantalus

Tantalus designs, manufactures, and markets two-way, real-time data communications networks to monitor and control electric, gas, and water utilities. The Tantalus Utility Network – TUNet – is a single, multi-purpose communications backbone specifically designed to help utilities extend the capacity of their distribution infrastructure. Tantalus’ long-range wireless networks unite a utility’s applications, making advanced metering, outage management, power quality monitoring, load management, and distribution automation cost-effective and practical throughout both urban and rural service areas.

For more information, please visit www.tantalus.com