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Cooper Industries to Cut 1,000 Jobs

28 December 1998

Cooper Industries Moves to Improve Long-Term Competitive Position; Plant Consolidations and Other Actions to Trim 1,000 Jobs

    HOUSTON, Dec. 28 -- Cooper Industries, Inc.
announced today that it will be implementing additional strategic actions that
will increase earnings and cash flow and otherwise enhance the company's long-
term competitive position.  These actions include the further consolidation of
manufacturing operations, relocation of a substantial number of production
positions to lower-cost locations and reduction of general and administrative
expenses company-wide.
    "As we look to the future, the changes we've announced today are necessary
for us to effectively compete," said H. John Riley, Chairman, President and
Chief Executive Officer.  "Over the last several years, we've made
considerable progress in reshaping Cooper into a company focused on our higher
growth and less volatile electrical and tools and hardware businesses.  These
actions are a continuation of that effort, enhancing our ability to continue
the industry-leading performance of our electrical products businesses and
improve the competitiveness of our tools and hardware operations," Riley said.
    The company will take a charge in the fourth quarter to cover the expenses
of the program.  The charge will be more than offset by a gain to be
recognized in the fourth quarter from the transfer of the company's Wyman-
Gordon common stock in settlement of its DECS (Debt Exchangeable for Common
Stock).  The associated cost savings are expected to have an impact on
Cooper's operating expenses beginning in the second quarter of 1999, with full
benefits expected to be realized in 2000.
    Cooper's plans target the elimination of 1,000 positions throughout the
company's worldwide operations during the next 12 to 18 months, including a
reduction of about 350 jobs in the first quarter of 1999.  To achieve this
goal, the company will use a combination of voluntary and involuntary
separations.
    Cooper has established a voluntary termination program that will be
offered to eligible employees at certain company locations.  The program
includes an enhanced severance package and other benefits to ease the
transition.  Other employees whose employment is terminated as a result of the
company's actions will also be eligible for severance benefits, in accordance
with the company's policy.
    Manufacturing consolidation plans will include the elimination of more
than a dozen facilities throughout the company's worldwide operations.  Cooper
plans to transfer much of this work to other existing facilities.  In some
cases, the manufacture of certain products will be transferred to expanded
facilities in Mexico to improve cost competitiveness.
    Cooper Industries, a worldwide manufacturer of electrical products, tools
and hardware, is headquartered in Houston, Texas.  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.