EMERSON CLIMATE TECHNOLOGIES™ ENCOURAGES CONTRACTORS TO USE 2005 ENERGY BILL TAX CREDITS TO HELP UPSELL HOMEOWNERS

When combined with a selling strategy focused on upselling benefits, the tax credits may help contractors offer additional value to homeowners

ST. LOUIS, February 22, 2006 – Emerson Climate Technologies, a business of Emerson (NYSE: EMR), is encouraging HVAC contractors to use the 2005 Energy Bill tax incentives to help upsell homeowners to higher SEER systems. The bill, enacted in late 2005, offers homeowners a tax credit if they purchase a 15 SEER or higher HVAC system between January 1, 2006, and January 1, 2008.

The Energy Policy Act of 2005 includes a provision for residential energy efficiency (Title XIII, Section 1333) that provides a 10 percent tax credit of up to $300 for the purchase of qualified energy-efficient air conditioning systems and heat pumps for existing homes. According to the policy, “qualified” means meeting or exceeding the following: Heat pumps must be at least 15 SEER; and central A/C split units must meet the highest energy-efficiency tier of the Consortium for Energy Efficiency (CEE) (15 SEER or higher, 12.5 EER, 8.5 HSPF).

While results from Emerson’s 13 SEER surveys show that many contractors understand the upselling opportunity presented by the new regulation, they also show that most contractors are very concerned that the increased selling price of the new units may deter many homeowners from upgrading. “It is important that contractors understand that the $300 tax credit alone is not going to sell units,” said Karl Zellmer, vice president of air conditioning sales for Emerson’s Copeland Corporation. “However, when combined with a selling strategy focused on upselling benefits like comfort, humidity control, energy efficiency and reliability, contractors may be able to educate homeowners and help influence their purchasing decisions.”

Emerson Climate Technologies has been encouraging contractors to understand the issues and opportunities presented by the new 13 SEER standard so they can offer additional value with new products and continue to grow their business. To help contractors gain a better understanding, Emerson has introduced the Get SEERious educational booklet which provides information that helps contractors take advantage of up-selling opportunities. Emerson’s UltraTech™ Home Series features products like the Comfort Alert™ Diagnostics, Copeland Scroll UltraTech™ two-stage compressor and the White-Rodgers® 90 Series™ thermostat which also gives contractors many ways to offer more benefits to homeowners.

Emerson Climate Technologies plans to utilize its Contractor Portal (EmersonClimateContractor.com), industry trade shows, and contractor and distributor events to increase contractors’ awareness of the tax incentives and the potential role they can play in upselling homeowners.

“With the minimum efficiency at 13 SEER, contractors need to understand that higher SEER by itself will no longer be a differentiating benefit they can use to upsell their customers,” said Zellmer. “13 SEER is now driving the need for a total change in mindset across the industry. Contractors who take a strategic look at their business and assess other ways to differentiate and upsell in a 13 SEER marketplace will continue to be successful.”

Emerson Climate Technologies’ 13 SEER surveys, along with the Get SEERious™ educational booklet, is a part of the company’s Get SEERious campaign, which is designed to educate contractors, distributors and homeowners on 13 SEER and help lead the HVAC industry through a smooth transition.

For more information on the Energy Policy Act of 2005, as well as a PDF of the Get SEERious educational booklet, visit EmersonClimateContractor.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 GoToEmerson.com.

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.