EMERSON CLIMATE TECHNOLOGIES 13 SEER SURVEY SHOWS CONTRACTORS SLOWLY PREPARING FOR TRANSITION

Quarterly survey verifies that while awareness of the transition is high, contractors could still be doing more to prepare for 13 SEER

ST. LOUIS, May 9, 2005 – Emerson Climate Technologies, a business of Emerson (NYSE: EMR), today announced that it recently completed a national survey that shows that HVAC contractors and distributors are beginning to slowly prepare for the upcoming 13 SEER transition – but there is still much that needs to be done.

The survey, the first in a series of 13 SEER market surveys that Emerson Climate Technologies will conduct over the course of the year, asked HVAC contractors and distributors across the industry questions to gauge their awareness, planning and actions to prepare for the 13 SEER regulation, which goes into effect January 23, 2006. The purpose of the survey is to help provide an accurate picture of the market’s transition, which is paramount to maintaining uninterrupted product delivery and high quality levels as OEMs release their new 13 SEER models to the industry.

“While the Emerson Climate Technologies survey shows that contractors are beginning to think about the coming 13 SEER regulation, it is evident that much more planning needs to be done and more action needs to be taken,” said Karl Zellmer, vice president of air conditioning sales for Emerson’s Copeland Corporation. “It is important that contractors begin to prepare now. They need to sit down, take a strategic look at their business and make sure they adequately plan for this massive transition. There are many details that should be considered in the planning stage.”

According to the survey, only about one-third of the contractors are taking steps to get ready for the transition. Among the findings of the survey of HVAC contractors:

• Thirty percent have developed a marketing plan for their 13 SEER transition

• Twenty-six percent are preparing for the increased size of the equipment

• Forty-five percent have conducted training for their employees

• Fifty-three percent have talked about the 13 SEER transition with their suppliers

• Twenty-eight percent have attended product information meetings

Next year will be a challenging year for the industry. To be successful after the transition, contractors need to plan for cost increases, focus on education and develop new sales approaches. With efficiency at 13 SEER, contractors will need alternative selling strategies to up-sell on benefits like comfort, indoor air quality, reliability and quality of services. They will also need to be educated on the new 13 SEER systems, because they operate at different conditions and contain more technology and features than are typically found in a standard 10 SEER unit.

Emerson Climate Technologies encourages contractors to start preparing for the 13 SEER transition as soon as possible. Some of the actions needed include educating service technicians, talking to suppliers, attending product information meetings, developing strategic marketing plans, revising sales tactics and pricing, and preparing for the increased size in equipment.

Emerson Climate Technologies plans to conduct the second survey in the series in late spring. To view the first 13 SEER survey results, go to EmersonClimateContractor.com.

About the 2004 13 SEER Market Survey

The 2004 13 SEER Market Survey is a national survey of 571 HVAC contractors and distributors. The survey was commissioned by Emerson Climate Technologies and conducted by Emerson Climate Technologies, Sabatino/Day and InfoUSA.

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 2004 were $15.6 billion.

About Emerson Climate Technologies

Emerson Climate Technologies, a business of Emerson, is the world’s leading provider of heating, ventilation, air conditioning and refrigeration solutions for residential, industrial and commercial applications. The group combines best-in-class technology with proven engineering, design, distribution, educational and monitoring services to provide customized, integrated climate-control solutions for customers worldwide. Emerson Climate Technologies’ innovative solutions, which include industry-leading brands such as Copeland Scroll™ and White-Rodgers, improve human comfort, safeguard food and protect the environment.