WaveCrest Laboratories and Emerson Announce Development and Manufacturing Agreement

Emerson to Supply Advanced Motors for WaveCrest's New Electric Propulsion Systems Designed for Transportation and Industrial Applications

DULLES, Va., June 8 -- WaveCrest Laboratories, a leading-edge technology company developing and commercializing highly advanced electric propulsion and drive systems for a wide range of transportation and industrial applications, has entered into a development and manufacturing agreement with Emerson Motor Technologies, a global leader in the design and manufacture of electric motors and a business of Emerson .

The agreement provides for WaveCrest and Emerson to collaborate in designing specialized electric motors and for Emerson to manufacture commercial volumes of these motors which WaveCrest will use in its new electric propulsion and drive systems for a variety of transportation and industrial products. Financial terms of the agreement were not disclosed.

The WaveCrest system uses software controls and advanced electromagnetic, thermal, and mechanical designs to provide efficient, cost effective, low pollution, and quiet electric propulsion and drives. Applications include bicycles, scooters, motorcycles, wheelchairs, light and heavy trucks, automobiles, boats, industrial transport, pumps, generators, and auxiliary power units. Target markets for WaveCrest's electric propulsion systems include fast-growing developing countries, such as Thailand, where the use of more energy efficient and low polluting technologies are being encouraged.

WaveCrest officials said they chose Emerson as their global electric motor technology supplier to ensure the highest standards in quality and reliability of its motor designs.

"Emerson's 100-plus years of motor manufacturing, design and process expertise are recognized globally as the gold standard for quality, reliability, and cost performance," said Roy Barbee, President and CEO of WaveCrest. "We are honored to call them our partner. This agreement will bring WaveCrest's electric propulsion systems, which offer unparalleled power and efficiency, to global markets quickly with the highest quality standards and best cost performance."

"Emerson is continuously looking for ways to apply its innovative and advanced technologies into new markets, including to meet the demand for energy efficient and environmentally-friendly products in developing countries," said Mark Gallion, President of Emerson's Automotive and Precision Motors Division. "WaveCrest is a remarkable young company, and a leader in the emerging electric propulsion systems industry. We look forward to partnering with WaveCrest to provide cost effective solutions for this growing market."

  For more information about WaveCrest, visit http://www.wavecrestlabs.com/
   
   About WaveCrest Laboratories

WaveCrest is a leading-edge technology company specializing in electric propulsion systems. The company's WaveCrest Adaptive(R) Motor system transforms electrical energy into mechanical motion with exceptional power and efficiency, which will launch a new generation of transportation, as well as wide-ranging industrial and commercial applications. Based near Washington, D.C. and with offices in Detroit and Gainesville, Fla., WaveCrest employs a staff of world-renowned scientists, engineers and managers. Additional information is available on the company's Web site at www.wavecrestlabs.com.

About Emerson and Emerson Motor Technologies(TM)

Emerson , based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2004 were $15.6 billion. For more information, visit http://www.gotoemerson.com/.

Emerson Motor Technologies, a business of Emerson, is a global leader in the design and manufacturing of electrical motors. The company provides a complete line of general and special purpose electrical motors from 1/200 through 4,000 horsepower. Brands such as Emerson(R), Doerr(R), U.S. Motors(R), Hurst(R), and Switch Reluctance DrivesTM allow Emerson(R) Motor Technologies to support a wide variety of industries and applications, including commercial and industrial, appliance hermetic, automotive and HVAC. For information, visit http://www.emersonmotors.com/.