Cooper Industries Acquires Cannon Technologies

Cooper Industries (NYSE:CBE) today announced the acquisition byCooper Power Systems, Inc. of Cannon Technologies, Inc., aMinneapolis-based provider of automation technologies for monitoringand metering, and energy management by electrical utilities. With thisacquisition, Cooper Power Systems will provide customers withcomprehensive solutions -- from the meter to the control room --including the ability to use a wide variety of communicationstechnologies to link equipment.

The purchase was made from a private-equity fund managed by GFIEnergy Ventures, the majority owner of Cannon, and the CannonTechnologies founders. Financial terms were not disclosed.

Cannon Technologies serves more than 400 utility customers inNorth America with automation technologies. Cannon's Yukon(R) AdvancedEnergy Services software provides a scalable platform for remotelyreading meters, controlling peak load, managing power, and monitoringsubstation and distribution system assets. The company's Yukonsoftware communicates to hundreds of thousands of endpoint devices atutilities of all sizes. Cannon's installed customer base is rapidlyexpanding, with revenues expected to be in excess of $55 million inits current fiscal year.

"Utilities face many challenges today, from the burden of arapidly aging infrastructure, to overloaded substation anddistribution system assets, and rising energy costs," said CooperChairman and Chief Executive Officer Kirk S. Hachigian. "Cannonprovides Cooper Power Systems with automation technologies andexpertise that will help our customers increase productivity, improvesystem reliability and reduce the cost of delivering electrical power.With Cooper Power Systems' 80-person technical sales force and broaddistribution channels, we significantly extend Cannon's capabilitiesand also accelerate our ability to deliver best-in-class automationand asset management solutions. We are investing in these newcapabilities and staking a leadership position in next-generationtechnologies that will drive additional value for our existing assetportfolio."

The acquisition of Cannon Technologies and the recently announcedlicensing agreement with Sensus Metering Systems are part of a seriesof technology investments Cooper has made to broaden its range ofcapabilities. Using the Sensus FlexNet(R) AMI technology providesCooper Power Systems with significant opportunities for developing newproducts and solutions that help utility customers better manage theirassets.

"Cooper is one of the world's most respected companies in theutility industry, and we share a common dedication to helpingutilities optimize energy delivery, both of which were key to ourdecision to join forces with the company," said Cannon TechnologiesFounder and Chief Executive Officer Ed Cannon. "Since the day wefounded Cannon Technologies 20 years ago, our passion has been to helputilities better manage assets and improve system reliability. Coopershares this vision, and together we will generate smart-utilitysolutions to deliver power reliably around the world."

Founders Ed Cannon and Joel Cannon will continue to lead thebusiness, which will operate as part of the Cooper Power Systemsdivision of Cooper Industries.

Cannon Technologies will be included in Cooper's financial resultsfrom the date of the acquisition. The acquisition is anticipated to beslightly dilutive to earnings per share in the first twelve months,exclusive of the one-time requirement to expense the value ofin-process research and development costs at the date of theacquisition.

About Cooper Power Systems

Cooper Power Systems, Inc., with revenues of approximately $900million, is a subsidiary of Cooper Industries, Ltd. (NYSE:CBE), adiversified worldwide manufacturer of products for the electrical,commercial and industrial markets. Cooper Power Systems manufacturesdistribution transformers, distribution switchgear, reclosers,capacitors, protective relays, voltage regulators, automated switches,cable accessories, surge arrestors, transformer components anddielectric fluids, fuses and tools and it provides engineeringservices for the electrical and industrial markets. For moreinformation, go to www.cooperpower.com or call 1-877-CPS-INFO.

About Cannon Technologies

Privately held Cannon Technologies, Inc. was founded in 1987 todeliver load management and automated distribution solutions toelectric utilities. Cannon Technologies is headquartered inMinneapolis, Minnesota -- with branch offices in California, Colorado,Georgia, Iowa, Nebraska, North Dakota, South Dakota, Texas andVirginia. Today, Cannon's customer portfolio includes more than 400electric utilities across North America. Utilities of all sizes applyCannon solutions to manage peak load, improve system power factor,read meters remotely, and improve substation reliability. For moreinformation, please visit www.cannontech.com.

About GFI Energy Ventures LLC

GFI Energy Ventures LLC is a private equity firm that hasinitiated and led over 45 investments in the energy sector over thepast ten years. GFI is the co-general partner with Oaktree CapitalManagement of the approximately $1.5 billion OCM/GFI Power OpportunityFunds. GFI invests exclusively in successful, profitable businessesproviding the equipment, software, services, and systems needed byutilities, other energy companies, and their largest customers togenerate, transmit, manage, measure and consume energy at a time ofmajor sector change. GFI is based in Los Angeles, California. For moreinformation, please visit www.gfienergy.com.

About Cooper Industries

Cooper Industries, Ltd. is a global manufacturer of electricalproducts and tools, with 2005 revenues of $4.7 billion, approximately30 percent of which are international sales. Incorporated in Bermudawith administrative headquarters in Houston, Cooper employsapproximately 29,000 people and operates eight divisions: CooperB-Line, Cooper Bussmann, Cooper Crouse-Hinds, Cooper Lighting, CooperMenvier, Cooper Power Systems, Cooper Wiring Devices and Cooper ToolsGroup. Cooper Connection provides a common marketing and sellingplatform for Cooper's sales to electrical distributors. For moreinformation, visit the website at www.cooperindustries.com.

Forward-Looking Statements

Statements in this news release are forward looking under thePrivate Securities Litigation Reform Act of 1995. Forward-lookingstatements include, but are not limited to, statements regardingCannon Technologies' projected revenues and the impact of theacquisition on Cooper's earnings. These statements are subject tovarious risks and uncertainties, many of which are outside the controlof the Company, and actual results may differ materially fromanticipated results. Important factors, which may affect the actualresults, include but are not limited to competitive pressures andfuture global economic conditions, including the level of marketdemand for Cannon's products and the ability to integrate the Cannonacquisitions into Cooper's business.