Chicago, IL and Raleigh, NC, January 14, 2002

-- S&C Electric Company has purchased the Power Quality business operation from Siemens Power Transmission and Distribution, of Raleigh, NC.

This operation, located in Orlando, Florida, designs and manufactures dynamic voltage restorers (DVRs) and other power quality and stability devices for high-tech customers. Sensitive computer-controlled processes are especially susceptible to voltage sags and fluctuations. These power quality problems can cost manufacturers millions of dollars a year in lost production time and materials. Power quality devices such as DVRs keep voltages stable by continually monitoring and compensating for sags and swells.

The operation will be integrated into S&C’s Power Electronics Division, which is responsible for the PureWave® family of power-electronic switching systems. The PureWave product line includes the PureWave Source-Transfer System and PureWave UPS System. John Estey, President of S&C Electric Company stated, “We are very pleased to assume responsibility for the Power Quality business. S&C has an extensive portfolio of products and services to improve the power quality supplied to critical customers and the Power Quality business is a great complement to these solutions. The product line is a great fit for S&C and has come about at a good time for us.”

“This deal is a win-win for both Siemens and S&C,” added Jan van Dokkum, President and CEO of Siemens Power Transmission and Distribution. “It allows us to focus like a laser beam on the high-voltage systems business and our utility customers, while rounding out S&C’s portfolio of distribution products for industrial customers.”

About S&C Electric Company
S&C Electric Company, headquartered in Chicago, IL, specializes in the development and manufacture of innovative products for the electric power industry, as well as the delivery of comprehensive, expert services for this industry. The company has engineering offices and manufacturing facilities in Chicago, IL, and East Troy, WI. S&C subsidiaries operate in Alameda, CA; Toronto, Canada; Curitiba, Brazil; and Suzhou, China. For more information visit www.sandc.com.

About Siemens Power Transmission & Distribution (USA)
Siemens Power Transmission & Distribution, Inc., headquartered in Raleigh, NC, creates innovative equipment and energy service solutions for electric utilities, independent power producers, co-generators and other energy-intensive industries. It has operations in Orlando, FL; Wendell, NC; Jackson, MS; Lafayette, IN; Minneapolis, MN; San Jose, CA; Atlanta, GA; and Reynosa, Mexico. For more information visit www.ptd.siemens.com