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Cooper Industries Completes Sale of Automotive Business

12 October 1998

Cooper Industries Completes Sale of Automotive Business, $500 Million Share Buyback

    HOUSTON, Oct. 9 -- Cooper Industries, Inc. today
announced the completion of the sale of its automotive products business to
Federal-Mogul Corporation for $1.9 billion.  In 1997, Cooper's
automotive business had revenues of almost $1.9 billion and operating income
of approximately $190 million before nonrecurring items.
    Cooper also announced it has recently completed a $500 million stock
repurchase program, authorized in August, in anticipation of the sale of its
automotive business.  During 1998, Cooper has reduced its shares outstanding
by 11% to approximately 107 million at the end of the third quarter.
    "The balance of the $1.9 billion in proceeds received from the sale of our
automotive business will provide ample resources to help us achieve immediate
and long-term improvements in shareholder value," said H. John Riley, Jr.,
Cooper's Chairman, President and Chief Executive Officer.
    "We plan to use the proceeds to reduce debt and continue to make value-
adding complementary acquisitions.  Additionally, a new stock buyback program
will likely be initiated before year-end to use the proceeds not designated
for debt repayment or future acquisitions.  These actions reflect both our
confidence in the company's growth potential and our commitment to enhancing
shareholder value," Riley said.
    Cooper Industries, a manufacturer of electrical products, tools and
hardware, is headquartered in Houston, Texas, and had 1997 revenues of
$5.3 billion.  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 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.