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Cooper Industries Establishes Global Tools Enterprise

19 July 1999

Cooper Industries Establishes Global Tools Enterprise COOPER INDUSTRIES LOGO Cooper Industries' logo. (PRNewsFoto)[DM] HOUSTON, TX USA 05/13/1999    

    HOUSTON, July 16 -- Cooper Industries today
announced that it will be consolidating all operations of its power tools and
hand tools divisions into one global business unit to be known as Cooper
Tools.  The consolidation will become effective immediately.  A. Peter Held,
currently president of Cooper Power Tools, will become president of the new
business unit, which will be headquartered in Lexington, South Carolina.
    "During the past several years, we have made significant improvements in
our tools businesses to enhance growth and increase profitability," said H.
John Riley, Jr., chairman, president and chief executive officer, Cooper
Industries.  "This consolidation is an integral part of these ongoing efforts.
By consolidating the two businesses into one structure, we will be able to
better leverage our manufacturing, operational, administrative and technical
strengths to create a powerful platform for global growth.  We believe that
the consolidation also will enhance customer service and expand marketing
channels.  In addition, we will be fully able to maximize the impact of the
state-of-the-art business enterprise systems we have been implementing over
the past 12 months at both our power tools and hand tools operations."
    "As the global tools business becomes increasingly competitive, the new
Cooper Tools organization will offer distinct advantages for our customers,"
said A. Peter Held.  "Cooper's worldwide business systems and resources will
allow us to deliver the highest quality products and services to all of our
customers wherever they may be located."
    "These actions should have little or no impact on 1999 results.  Longer
term, this new structure will offer improved asset management and purchasing
leverage as well as providing significant new sales and marketing and margin
improvement opportunities for this segment of Cooper's overall business,"
continued Riley.  "This consolidation is another step in our strategic plan to
maximize value for our shareholders."
    The new Cooper Tools organization consists of 59 manufacturing and sales
facilities located in North and South America, Europe and Asia Pacific.  The
segment offers electric and pneumatic industrial power tools along with
related accessories, software and networking services; premium hand tools;
joining products; and chain products for a broad base of end user markets.
    Cooper Industries, with 1998 revenues of $3.7 billion, is a worldwide
manufacturer of electrical products, tools and hardware.  Additional
information about Cooper is available on the Company's Internet site:
http://www.cooperindustries.com.

    Contact:  John Breed, Director, Media & Government Relations of Cooper
Industries, Inc., 713-209-8835.