Emerson Acquires Knurr AG of Germany; Leader in Rack and Enclosure Technologies for IT and Telecom Markets to Strengthen Emerson Network Power Capability and Global Position

Business Wire, Jan 31, 2006

ST. LOUIS -- Emerson (NYSE: EMR) today announced it has acquired Knurr AG of Munich, Germany, whose leading enclosure systems for the telecommunication and data industries - along with its cooling technologies - will become part of Emerson Network Power's broad technology offering. Emerson will pay approximately EUR 80 million (including all debts assumed) for Knurr.

Knurr joins with Emerson Network Power's industry-leading Liebert(R) brand and its recent Cooligy acquisition to build comprehensive capabilities in rack solutions, mission-critical cooling, and systems integration for data center and telecom sites. As power density and damaging heat levels have grown significantly in these applications, Emerson Network Power now delivers the broadest portfolio of technologies - surpassing previously available capabilities - to solve critical cooling issues at the room, rack, or chip level.

In data centers, Emerson was first to market with cooling solutions for extreme density applications with its Liebert XD(TM) cooling platform. Now it is taking proven technologies from room-level applications and integrating them into the rack. Knurr's broad platform of rack systems will integrate Emerson's cooling and power management technologies, helping customers solve problems in new and existing installations and giving data center managers more flexibility in facility design.

"The rack is fast becoming a critical product on the data center floor, serving as a platform for integrating power, cooling, and information technologies," said David N. Farr, Emerson chairman, chief executive officer and president. "The addition of Knurr's market-leading products and technologies supports our strategy to make the Liebert Adaptive Architecture(TM) the desired standard for IT facilities."

Knurr also designs flexible, cost-effective enclosure platforms for the telecom industry, and is serving major telecom customers with innovative liquid rack-cooling systems and Advanced TCA(a)-compliant, extreme-density cabinets. These cabinets contain sophisticated power and cooling technologies, making it possible to deploy the next generation of wireless telecom technologies.

Emerson Network Power is currently the largest supplier of power for remote telecom equipment. The cabinet-level solutions acquired with Marconi's power business will be further bolstered by adding Knurr's enclosure capabilities. Together they make Emerson's DC Power solutions even more competitive as carriers continue to invest in next-generation wireless technologies and deploy broadband networks.

"With Knurr, we further strengthen Emerson Network Power's competitive advantage," said Ed Feeney, Emerson senior vice president, "helping customers solve power, cooling, and monitoring problems for IT or telecom sites and delivering ready-to-deploy rack and enclosure solutions - whether one cabinet or an entire global enterprise."

Knurr, headquartered outside of Munich in Arnstorf, Germany, with sales in 2005 of approximately EUR 128 million, has manufacturing facilities in a number of countries in Europe, as well as in the United States and South America, and has a sales and marketing presence in 35 countries.

"We are excited about the global opportunities and the synergies created by alignment with Emerson and with Emerson Network Power's leading power and precision cooling technologies," said Oliver Gosemann, chief executive officer of Knurr. "We have worked hard to earn a reputation for quality and innovation. By coupling our capabilities with Emerson, we can offer customers so much more and we think customers are going to be excited about what's ahead."

(a) AdvancedTCA is a new series of industry standard specifications for next generation carrier grade communications equipment.

About Knurr AG

Knurr designs, produces and integrates standardized and customized rack systems, enclosures, backplanes, thermal management and power supply systems, applied components and functional furnishing systems. Knurr develops and produces PDUs and socket strips internally, which enables each customer-specific requirement to be implemented. You will find more information at: www.knuerr.com

About Emerson Network Power

Emerson Network Power, an Emerson business and the global leader in business critical continuity, serves the needs of telecommunications networks, data centers, health care, and industrial facilities worldwide with a full spectrum of reliable power solutions, including inbound power, connectivity, power supplies, power systems, and precision cooling - all backed by the largest global services organization in the power industry. For more information, visit www.emersonnetworkpower.com.

About Emerson

Emerson (NYSE: EMR), based in St. Louis, is a global leader in bringing technology and engineering together to provide innovative solutions to customers through its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2005 were $17.3 billion. For more information, visit www.gotoemerson.com.