Cooper Industries Reports Third Quarter Revenues up 14 Percent.

Earnings of $.93 Per Share, Including Belden Income and Legal Matters of $.10 Per Share

Earnings Per Share up 20 Percent to $.83 Excluding Belden Income and Legal Matters

HOUSTON -- Cooper Industries, Ltd. (NYSE:CBE) today reported third quarter 2007 earnings per share (excluding Belden income and legal matters) of $.83 (diluted), an increase of 20 percent compared with $.69 earnings per share for the third quarter of 2006. Third quarter 2007 revenues increased 14 percent to $1.50 billion, compared with $1.31 billion for the same period last year. Net income (excluding Belden income and legal matters) rose 19 percent to $153.1 million, compared with the prior year amount of $128.2 million.

"Our global growth investments continued to gain momentum with developing markets revenues growing close to 40 percent in the quarter. Our Company-wide strategic initiatives and proven business model have now delivered seven quarters in a row of 20 percent plus earnings per share growth from continuing operations," said Cooper Industries Chairman and Chief Executive Officer Kirk S. Hachigian. "Core growth was 9 percent, with acquisitions contributing 3 percent to revenue growth, and currency translation contributing 2 percent."

"Cooper's financial position continues to be strong. We ended the third quarter with a debt-to-total capitalization ratio, net of cash, of 20.9 percent, even after several acquisitions and the repurchase of over 5 million shares year-to-date," said Hachigian.

For the 2007 third quarter, Cooper recognized $23.5 million in income under an agreement with Belden. In 1993, Cooper completed an initial public offering of the stock of Belden, formerly a division of Cooper. Under the agreement, Belden and Cooper made an election that increased the tax basis of certain Belden assets. Belden is required to pay Cooper ninety percent of the amount by which Belden has actually reduced tax payments that would otherwise have been payable if the increase in the tax basis of assets had not occurred, as realized principally over fifteen years. In addition to the Belden income, Cooper recognized $6.4 million of expense related to certain legal matters.

Revenues for the first nine months of 2007 were $4.36 billion, a 13 percent increase from the $3.84 billion in revenues for the first nine months of 2006. Earnings per share from continuing operations for the first nine months of 2007 (excluding income tax accrual adjustments, Belden income and legal matters) were $2.31, compared with $1.89 for the same period in 2006, an increase of 22 percent. Income from continuing operations (excluding income tax accrual adjustments, Belden income and legal matters) for the first nine months of 2007 rose 21 percent to $430.1 million, compared with $355.7 million for the first nine months of 2006.

The 2007 year-to-date results include a $63.5 million or $.34 earnings per share reduction of income taxes expense. The Internal Revenue Service and Cooper finalized settlements totaling $55.7 million related to the 2000 through 2004 tax years in the second quarter. A change in rates for the Texas margin tax and other developments in the 2007 second quarter represented the remaining $7.8 million of income taxes expense reduction. The 2006 year-to-date results include an after-tax discontinued operations charge of $20.3 million, or $.11 per diluted share.

Segment Results

Electrical Products segment revenues for the third quarter of 2007 increased 15 percent to $1.30 billion, compared with $1.13 billion in the third quarter of 2006. Recent acquisitions and favorable currency translation increased revenues approximately 5 percent compared to prior year. Segment operating earnings were $224.2 million, an increase of 20 percent from $186.4 million in the prior year's third quarter. Segment operating margin improved 70 basis points to 17.2 percent for the third quarter of 2007.

The increase in revenues for the Electrical Products segment continued to reflect strength in the utility and industrial markets, strong international growth and solid growth in U.S. nonresidential construction markets. As anticipated, the U.S. residential markets continued to be soft.

In August, the Company acquired Illinois-based io Lighting, a dedicated light-emitting diode lighting fixture company, and Vermont-based Powerline Communications, Inc., a manufacturer of digital lighting control panels. Expected sales for the two companies in 2007 are approximately $17 million and the combined purchase price was $22 million.

In October, the Company announced a joint venture with the Nature Science and Technology Company, a privately-held medium voltage indoor switchgear manufacturer based in Zhejiang province, China. The joint venture, 60 percent controlled by Cooper, will allow Cooper access to indoor switchgear products that meet International Electrotechnical Commission standards, expanding upon its current offerings that meet American National Standards Institute electrical standards.

Electrical Products segment revenues for the first nine months of 2007 grew 15 percent to $3.78 billion, compared with $3.29 billion in 2006. Segment operating earnings for the first nine months increased 21 percent to $631.6 million compared with $524.0 million for the same period last year.

Tools segment revenues for the third quarter of 2007 increased 7 percent to $199.4 million, compared with 2006 third quarter revenues of $187.2 million. Currency translation increased revenues over 3 percent in the quarter. Segment operating earnings for the period were $22.0 million, compared with $24.3 million for the third quarter of 2006. Segment operating margin for the third quarter of 2007 was 11.0 percent, compared with 13.0 percent for the same period last year. The assembly systems business is transitioning from complete assembly systems to fastening stations and smaller installations. The 2007 third quarter earnings and return on revenues were impacted by shipments of low-margin assembly systems. The increase in revenues in the Tools segment reflects solid aerospace demand, increased penetration in retail channels and the shipment of assembly systems, offset by weakness in the motor vehicle markets.

Revenues for the first nine months of 2007 increased 4 percent to $574.2 million, compared with $551.8 million for the same period last year. Segment operating earnings for the first nine months of 2007 grew 7 percent to $65.4 million, compared with $61.2 million in the prior-year period.

Outlook

"The performance of our businesses in the quarter, continued strength in the majority of our end-markets, and global economic conditions cause us to remain optimistic about our full-year 2007 performance," said Hachigian. "Our initiatives focused on customer loyalty, innovation, globalization, talent development and operational excellence will continue to contribute to our efforts to deliver a balance of growth, margin expansion and cash generation. We expect our Electrical Products and Tools segments to continue to perform strongly in the fourth quarter. We expect fourth quarter revenues to increase in the range of 12 to 14 percent, with earnings per share from continuing operations between $.79 and $.83.

For the year, we expect 2007 revenues to increase in the range of 12 to 14 percent, with earnings per share from continuing operations between $3.11 and $3.15 (excluding income tax accrual adjustments, Belden income and legal matters). This represents a 21 to 22 percent increase, compared with full-year results for 2006.

About Cooper Industries

Cooper Industries, Ltd. is a global manufacturer, with 2006 revenues of $5.2 billion, approximately 85 percent of which are from electrical products. Incorporated in Bermuda with administrative headquarters in Houston, Cooper employs approximately 31,000 people and operates eight divisions: Cooper B-Line, Cooper Bussmann, Cooper Crouse-Hinds, Cooper Lighting, Cooper Menvier, Cooper Power Systems, Cooper Wiring Devices and Cooper Tools Group. Cooper Connection provides a common marketing and selling platform for Cooper's sales to electrical distributors. For more information, visit the website at www.cooperindustries.com.

Comparisons of 2007 and 2006 third quarter and year-to-date results appear on the following pages.

Statements in this news release are forward-looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the Company's earnings outlook. These statements are subject to various risks and uncertainties, many of which are outside the control of the Company, and actual results may differ materially from anticipated results. Important factors which may affect the actual results include, but are not limited to: 1) competitive pressures and future global economic conditions, including the level of market demand for the Company's products; 2) changes in raw material, transportation and energy costs; 3) the ability to execute and realize the expected benefits from strategic initiatives including revenue growth plans, and cost-control and productivity improvement programs; 4) any disruptions from manufacturing rationalizations and the implementation of the Enterprise Business System; 5) mergers and acquisitions, and their integration; 6) political developments; 7) changes in financial markets including currency exchange fluctuations; 8) changes in legislation and regulations including changes in the tax laws, tax treaties or tax regulations; 9) the timing and amount of share repurchases by the Company; and 10) the resolution of potential liability exposure resulting from Federal-Mogul Corporation's bankruptcy filing.

Conference Call

Cooper will hold a conference call today at 12:00 noon EDT to provide shareholders and other interested parties an overview of the Company's third quarter 2007 performance. Those interested in hearing the conference call may listen via telephone by dialing [phone] using pass code 99142423, or over the Internet through the Investor Center section of the Company's website, using the "Management Presentations" link. International callers should dial [phone] and use pass code 99142423.

The conference call may include non-GAAP financial measures. Cooper will post a reconciliation of those measures to the most directly comparable GAAP measures in the Investor Center section of the Company's website under the heading "Management Presentations."

Informational exhibits concerning the Company's third quarter performance that may be referred to during the conference call will be available in the Investor Center section of the Company's website under the heading "Management Presentations" prior to the beginning of the call.

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(*) See additional information regarding Belden income and legal matters on page 7.

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(*) See additional information regarding income taxes, Belden income and legal matters on page 9.

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