COOPER INDUSTRIES, INC.
POLICY BULLETIN

Number: CP-26
Pages: 1 to 3
Issued: May 1, 1990
Revised: June 8, 1999
SUBJECT: Environmental Policy

I. SCOPE
This policy applies to all organizational entities of Cooper Industries, Inc., worldwide.

II. PURPOSE
The purpose of this policy is to affirm the importance of safeguarding human health and the environment and to ensure that all levels of the organization understand their responsibility and accountability for implementing environmentally safe practices. This policy confirms the Company's commitment to continually review its procedures, keep abreast of changes in the laws and regulations and examine ways to improve its environmental program and compliance procedures.

III. GENERAL POLICY
Cooper Industries has established a goal to minimize and eliminate waste streams, where practical, that are generated and handled within its facilities. This will be achieved by engineering, purchasing and/or process change. Any remaining waste stream and/or hazardous material are to be effectively managed through proper recycling, treatment or disposal. This effort will be pursued in a manner that complies with the appropriate environmental regulations established by federal,
state and local government entities.

1. It shall be the responsibility of each Division President to adopt and implement Cooper's worldwide environmental management program consistent with this policy. The Division President has the ultimate responsibility for maintaining worldwide environmental compliance within the division. This program will include the appointment of an individual designated as the Division Environmental Coordinator. Each division program will include policies, programs, technologies, procedures, and internal controls which are consistent with those published in the Corporate Policies and Uniform Procedures Manual. The environmental management program should be reviewed with and approved by the Vice President, Environmental Affairs and Risk Management and the Director, Environmental Audit and Compliance. Each program shall include, but not be limited to, the following objectives:
   
   1. Compliance with the requirements of local, state and federal regulations regarding human health and environmental protection. These regulations include, but are not limited to, those promulgated by the Environmental Protection Agency (EPA); Occupational Safety & Health Act (OSHA); Department of Transportation (DOT), various state agencies, local Publicly Owned Treatment Works (POTW) and similar agencies in countries outside of the United States.
   
   2. Elimination, recycling or significant reduction of all waste streams generated by Cooper’s manufacturing operations. This elimination/reduction effort shall apply particularly to those waste streams and sources that are regulated. These include storm water, wastewater, air emissions, hazardous waste, hazardous materials, and solid waste.
   
   3. Consideration of environmentally friendly technologies during product design, material purchase and manufacturing process development phases to eliminate or minimize the use of toxic or hazardous substances and the subsequent generation of hazardous waste within Cooper plants.
   
   4. Employee training that emphasizes effective environmental management practices and the need to manage the use of toxic or hazardous materials in such a way that they do not become a threat to human health or the environment.
   
   5. A written commitment by each Division President to conduct Cooper’s manufacturing operations in a manner that demonstrates respect for human health and the environment.
   
   6. Cooperation with federal, state and local governments in achieving cost effective, scientifically based environmental compliance.
   
   
   
2. It shall be the responsibility of Cooper’s Environmental Affairs Department, under the policy guidance of the Vice President, Environmental Affairs and Risk Management, to:
   
   1. Manage an environmental audit program, which shall include facility or division self-evaluations and periodic corporate environmental audits of each manufacturing and service facility. The results of each facility audit will be submitted to the appropriate Division President, so that a corrective action response plan can be developed and implemented to achieve compliance in a timely and cost effective fashion;
   
   2. Address, investigate and remediate in a cost effective manner liabilities associated with past environmental practices (e.g., waste handling and disposal);
   
   3. With the assistance of the Director, Environmental Legal Affairs, negotiate the terms and conditions of all appropriate settlements or orders associated with environmental liabilities;
   
   4. Evaluate environmental liabilities associated with prospective acquisitions and divestitures;
   
   5. Evaluate environmental liabilities associated with all real estate transactions conducted by Cooper;
   
   6. Assist all the divisions and plants in addressing their environmental liabilities; and
   
   7. Develop appropriate procedures and bulletins pertaining to key environmental activities.

IV. RESPONSIBILITY FOR ADMINISTRATION
The Vice President, Environmental Affairs and Risk Management, shall be responsible for providing assistance in addressing compliance, remediation, auditing and technology matters at all ongoing operations. The Vice President, Environmental Affairs and Risk Management shall make an annual report to the Board of the environmental compliance practices of the Company.

PREPARED BY:
_______________________________
Robert W. Teets
Vice President, Environmental Affairs
and Risk Management

APPROVED BY:
___________________________
Diane K. Schumacher
Senior Vice President,
General Counsel and Secretary
___________________________
H. John Riley, Jr.
Chairman, President and
Chief Executive Officer

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