Cooper Industries, Inc. yesterday announced that it has completed its strategic alternatives review process authorised by its Board in August 2001.

The Company, working with its financial advisors, Credit Suisse First Boston Corporation and Goldman Sachs & Co. Inc., was authorised to pursue every reasonable alternative that could maximise value for Cooper's shareholders, including a sale of Cooper in whole or in parts.

After careful review of all the available alternatives with management and its advisors, Cooper's Board of Directors concluded that it is in the best interest of Cooper's shareholders to move forward with the previously-announced plan to reincorporate in Bermuda.

"We are excited about the opportunities presented by a Bermuda reincorporation and are confident that it is in the best interests of our shareholders and other constituencies," said H. John Riley, Jr., chairman, president and chief executive officer.

"This change will enhance Cooper's strategic flexibility and our reduced global tax position will significantly increase cash flow - enabling us to further strengthen our balance sheet and better position us to pursue worldwide growth opportunities.

"We will continue to aggressively run our businesses, emphasising a highly disciplined approach to cost reduction and efficiency improvements to maximise Cooper's strong business platforms," continued Riley.

"Cooper has impressive product breadth, leading brand names and market strength. We are more confident than ever in the fundamental soundness and potential of our valuable global franchise.

"The process we undertook almost seven months ago was very careful, deliberate and complete in analysing how best to maximise value for our shareholders," said Riley.

"However, the tragic events of September 11, the bankruptcy of Federal-Mogul and a very difficult business environment intervened. As a result, we received no definitive proposals to acquire the Company as a whole or in parts."

Going forward, Cooper intends to deliver solid results and enhance the Company's performance by: continuing to invest in revenue growth initiatives, including the Cooper Connection distributor-relationship program, which is broadening market coverage and enhancing service to distributor and end-user customers; expanding the Company's global strategic sourcing initiative and its programs to move production to lower-cost geographic regions; and continuing to restructure business units and exiting underperforming product lines to ensure that Cooper is optimally positioned within the broad range of markets it serves.

"Cooper's performance in 2001 showed impressive operational resiliency and disciplined cost control, despite the unexpected severity of the downturn in the economy and the significant management resources needed to complete our process to review strategic alternatives," said Riley.