---

Cooper Industries Considering Options to Exit Automotive Business

3 April 1998

Cooper Industries Considering Options to Exit Automotive Business

    HOUSTON, April 3 -- Cooper Industries, Inc.
today announced that it has retained Merrill Lynch & Co. to advise Cooper on
alternatives for exiting the automotive business.  As part of its engagement,
Merrill Lynch will assist Cooper in evaluating a possible initial public
offering and other alternatives for Cooper's Automotive Products segment that
will enhance shareholder value.
    Cooper's Automotive Products segment consists of Cooper Automotive and
Moog Automotive, leading suppliers of aftermarket parts and original equipment
for automobile manufacturers worldwide.  Cooper's automotive products include
well-known brands such as Champion spark plugs, Anco wiper products, Wagner
lighting and brake components, EIS brakes, Moog steering and suspension parts,
and Precision universal joints. The Automotive Products segment had 1997
revenues of $1.9 billion.
    Automotive Products currently accounts for 34% of Cooper's revenue, with
Cooper's Electrical Products and Tools & Hardware segments accounting for
approximately 52% and 14% of Cooper's total revenue, respectively.  Absent the
Automotive Products business, the Electrical Products and Tools & Hardware
segments account for approximately 80% and 20% of Cooper's total revenue,
respectively.
    Commenting on the announcement, H. John Riley, Jr., Chairman, President
and Chief Executive Officer of Cooper Industries, said, "Given the growth
potential we foresee in our Electrical Products and Tools & Hardware segments,
we believe that our shareholders would be better served by our focusing on and
growing these core businesses, both internally and through acquisitions.  The
result should be enhanced value for our shareholders, our employees and our
customers."
    "The Automotive Products business will continue to focus it management and
financial resources on pursuing actions and programs to improve its internal
operating performance," said Riley.  "This focus will enable our already
strong automotive operations to perform even better in the future.  Further,
we also expect that a separation would make it easier for the investment
community to analyze and evaluate Cooper's remaining operations as well as the
Automotive Products operations," Riley concluded.
    Proceeds from any disposition of Cooper's Automotive Products segment
would likely be used to fund internal growth and acquisitions in Cooper's
Electrical Products and Tools & Hardware operations, a potential repurchase of
Cooper's shares, and other general corporate purposes.
    Cooper Industries, with 1997 revenues of $5.3 billion, is a diversified,
worldwide manufacturer of electrical products, tools and hardware, and
automotive products.  Additional information about Cooper is available on the
company's World Wide Web site: http://www.cooperindustries.com.

SOURCE  Cooper Industries