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Cooper Industries Adjusts Quarterly Earnings Estimate

19 June 1998

Cooper Industries Adjusts Quarterly Earnings Estimate

    HOUSTON, June 19 -- Cooper Industries, Inc.
announced today that it expects its earnings for the second quarter to be up
modestly as compared to 1997, but lower than previously anticipated.  The
company has lowered its expectations due to reduced overall demand for utility
products and hazardous duty electrical equipment worldwide.  In addition, work
stoppages at several General Motors facilities are now having a negative
impact on an already weak automotive parts market.
    The effects of a continuing lack of large project orders and the
deteriorating economic conditions in Asia are impacting revenues in several of
the Company's businesses.  Specifically, orders and shipments of power
equipment and hazardous duty electrical construction materials are being
postponed, in some cases indefinitely.  The Company is also seeing more
competitive conditions for these same products in domestic markets as
utilities and large industrial customers begin to pare back inventories and
capital spending programs.
    The remaining portions of Cooper's operations continue to perform very
well compared to last year.  Cooper's circuit protection products, lighting
fixtures, and hand and power tools are expected to produce increased revenues
and earnings during this quarter.
    "While we are unsure whether or not these conditions will continue for the
remainder of the year, we have already begun to take steps to moderate the
effects these changing market conditions may have on our performance," said H.
John Riley, Jr., Chairman, President and Chief Executive Officer.  "These
actions include production cutbacks, general expense reductions and
accelerated cost reduction programs.  Taking these actions now should produce
further earnings improvement over the remainder of the year," Riley added.
    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.
    Statements in this news release are forward-looking statements under the
Private Securities Litigation Reform Act of 1995.  These statements are
subject to various risks and uncertainties, many of which are outside the
control of the Company, such as the level of market demand for the Company's
products, competitive pressures and future economic conditions.  These factors
are discussed in the Company's 1997 Annual Report on Form 10-K and other
Securities and Exchange Commission filings.