EMERSON CLIMATE TECHNOLOGIES SURVEY SHOWS GROWING NUMBER

EMERSON CLIMATE TECHNOLOGIES SURVEY SHOWS GROWING NUMBER

OF CONTRACTORS VIEW 13 SEER TRANSITION AS UPSELLING OPPORTUNITY

ST. LOUIS, October 25, 2005 – Emerson Climate Technologies, a business of Emerson (NYSE: EMR), today announced that its third quarterly 13 SEER survey shows a growing number of HVAC contractors (33 percent) view the 13 SEER transition as an upselling opportunity.

The survey, the third in a series of 13 SEER market surveys that Emerson Climate Technologies is conducting over the course of the year, asks 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.

“Even if you’re already selling 13 SEER today, you might find that it’s not the same in 2006. In the new 13+ SEER world, selling only on higher efficiency is not going to be enough to succeed,” said Karl Zellmer, vice president of air conditioning sales for Emerson’s Copeland Corporation. “Many contractors are now beginning to understand that they will need to upsell benefits like comfort, indoor air quality, reliability and quality of services to continue to be successful. The forward-thinking contractors who follow up their new business and marketing strategy with improvements in selling skills focused on differentiation, upselling benefits and new equipment training will be the most successful during and after the transition.”

The survey also shows that many contractors still have serious concerns as the industry moves closer to the 13 SEER transition. These concerns range from increased pricing of the units and homeowner education, to mis-matched systems and service technician training.

“I think as contractors, and the industry, continue to prepare for the transition, we will see many of these concerns diminish,” said Zellmer. “For example, on the issue of mis-matched systems, contractors should review their matched unit strategy and look for revised guidelines from OEMS. On the issue of increased pricing, much of the concern is based on speculation of what the pricing may be. As more OEMs announce pricing, that speculation will disappear.”

Among the other findings of the survey:

-- Forty-four percent plan to sell 10-SEER units after January 23, 2006 (Most indicate this will be primarily for special jobs)

-- Thirty percent believe the 13 SEER transition will result in less replacement sales and an increase in unit repairs

-- Fifty-five percent are currently actively promoting and selling new 13 SEER products

-- Forty-nine percent said their distributors have advised them to start preparing now on how to sell and service the new 13 SEER products

Emerson Climate Technologies is continuing to encourage contractors to prepare for the 13 SEER transition as soon as possible. Some of the actions needed include talking to suppliers, attending product information meetings, developing strategic marketing plans, determining upsell strategies, revising sales tactics and pricing, preparing for the increased size in equipment and educating service technicians on the new technologies in 13 SEER systems.

Emerson Climate Technologies plans to conduct its final 13 SEER survey in late fall. The 13 SEER survey, is a part of Emerson’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.

To view the complete 13 SEER survey results, visit EmersonClimateContractor.com. The site also includes valuable tools to help prepare for the transition, such as the 13 SEER checklist, as well as 13 SEER training information.

About the 2005 13 SEER Market Survey

The 2005 13 SEER Market Survey is a national survey of 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.