16 August 2005 WaterOne to implement Derceto pump scheduling optimization software

Water District No.1 of Johnson County (WaterOne), in Kansas, is the fourth North American utility to implement Derceto pump scheduling optimization software following the successful roll-out to East Bay Municipal Utility District in 2004 and the recent contract signing of Washington Suburban Sanitary Commission. Installation of the software is expected to start in March 2006 and will pay for itself in about one year through electricity cost savings.

Derceto, Inc. provides water utilities with Derceto a unique software solution that operates in conjunction with existing control systems to minimize pumping costs. Derceto's customized design operates within defined operational constraints such as minimum storage levels, treatment plant capacities and water turnover requirements. Operating in real time, the software responds to changing conditions (e.g. fire flow demand or real-time electricity prices) to derive the most energy-efficient schedule of operations, automatically controlling all pumps.

When we analyzed the WaterOne distribution system it proved ideal for a Derceto implementation. With the constant state of flux in the energy market we also looked at the potential impact of deregulation changes to WaterOne's energy costs and determined that even under a range of future pricing options Derceto would achieve payback in little over a year. We are looking forward to another successful project, says Derceto, Inc. Chief Technical Officer Simon Bunn.

About WaterOne, Johnson County

WaterOne is a quasi-municipal agency headquartered in Lenexa, KS, that provides water to more than 375,000 persons located in the Kansas City metro area. WaterOne serves residential and commercial accounts in 15 cities in the Johnson County area. In 2004, WaterOne served approximately 130,000 customer accounts.

www.waterone.org

About Derceto, Inc.

Derceto, Inc. is focused on energy cost optimization for water and wastewater utilities. The Derceto optimization technology has been used around the world for more than eight years. Derceto opened its US headquarters in San Francisco in 2003 and recently appointed Ted Witham as VP of Sales and Marketing. New Jersey based Regional Manager, Cary Hillebrand, leads Derceto's expansion into the North Eastern States. www.derceto.com

Derceto, Inc.

One Embarcadero Centre, Suite 500

San Francisco , CA 94111

Tel: (415) 646-8960

Toll Free: (800) 509-5758

Fax: (415) 433-5994

Please visit us on the web at www.derceto.com

Ends

Press Contact Information

Shirley McGill

Derceto Ltd

Auckland , New Zealand

Tel : +64 9 336 9430

smcgill@derceto.com