Rockwell Automation Discloses Settlement with Internal Revenue Service in 10-Q

    MILWAUKEE--April 30, 2003--Rockwell Automation, Inc. , a leading global provider of industrial automation power, control and information solutions, today filed its Form 10-Q with the Securities and Exchange Commission and disclosed the following:

    "On March 31, 2003, the Company filed a research and experimentation credit refund claim (Claim) for the years 1997 through 2001. On April 29, 2003, the Company reached an agreement with the Internal Revenue Service with respect to the Claim for $65 million plus interest. In addition, the Company expects to realize related state tax benefits. The Claim will be offset by a reduction of federal foreign tax credits utilized in the periods covered by the Claim. The Company is in the process of quantifying the amount of federal interest, state tax benefits and the offset related to federal foreign tax credits. The Company expects to recognize in earnings in the third quarter of 2003 a net tax benefit of a minimum of $65 million associated with the Claim. The Claim is subject to the approval of the Joint Committee on Taxation of the United States Congress and the state tax benefits are subject to approval by the various state tax authorities. The majority of the cash proceeds from the Claim are expected to be received upon the conclusion of the current federal audit cycle, which is expected to be in 2005."

    Rockwell Automation is a leading global provider of industrial automation power, control and information solutions that help customers meet their manufacturing productivity objectives. The company brings together leading brands in industrial automation for Complete Automation solutions, including Allen-Bradley(R) controls and services, Dodge(R) mechanical power transmission products, Reliance Electric(TM) motors and drives, and Rockwell Software(R) factory management software. The company also is a provider of contact management technologies and applications that help companies more efficiently manage interaction with their own customers. Headquartered in Milwaukee, Wisconsin, the company employs about 22,000 people serving customers in more than 80 countries.

    This news release contains statements (including certain projections and business trends) accompanied by such phrases as "believes," "estimates," "expect(s)," "anticipates," "will," "intends" and other similar expressions, that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to economic and political changes in international markets where the company competes, such as currency exchange rates, inflation rates, recession, foreign ownership restrictions and other external factors over which the company has no control; demand for and market acceptance of new and existing products, including levels of capital spending in industrial markets; successful development of advanced technologies; competitive product and pricing pressures; future terrorist attacks; epidemics; and the uncertainties of litigation, as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.