Emerson To Acquire Marconi Power Business; Increases Emerson Network Power Capability to Serve Telecom Customers With Global Power Systems, Solutions and Services

ST. LOUIS--()--July 7, 2004--Emerson (NYSE: EMR) announced today that it has reached an agreement to acquire the outside plant and power systems business of Marconi Corporation PLC (LSE: MONI) for $375 million in cash. The transaction is expected to close by the end of Emerson's fourth fiscal quarter, September 30, 2004, following regulatory review, and is expected to be accretive to fiscal 2005 earnings.

The Marconi power business, based in Lorain, Ohio, is a leading provider of DC power products, engineering and installation services, and outside plant products to major telecommunication carriers throughout North America. Its revenues for the year ended March 31, 2004, were approximately $380 million. This acquisition will allow Emerson to strengthen its presence with the regional Bell companies, inter-exchange carriers, wireless and cable companies in North America -- and leverage its global assets.

"The combination of Marconi's power business with the global engineering and manufacturing resources of Emerson Network Power provides an unmatched competitive advantage for global telecom customers," said David N. Farr, Emerson chief executive officer. "This expands our North American presence in DC products, solutions, and services, and enhances our position as a global leader in DC power systems."

"The Marconi power business complements our existing global business and offers significant revenue, cost, and technology synergies," added Jim Berges, President of Emerson. "With a global product platform strategy and strong regional configuration capabilities, Emerson can provide leading edge solutions for our customers anywhere. Marconi's outside plant products, used to support the growing demand for more power and electronics placed outside the central office and closer to the subscriber, expand the product portfolio available to Emerson's customers."

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment, services and solutions company. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on the London Stock Exchange under the symbol MONI and on NASDAQ under the ticker MRCIY.

About Emerson Network Power

Emerson Network Power, a business of Emerson, provides a full spectrum of reliable power solutions, including inbound power, connectivity, power supplies, power systems and precision cooling, backed by the largest global services organization in the power industry. These Emerson companies serve the needs of telecommunications networks, data centers, health care and industrial facilities worldwide. For information, visit www.emersonnetworkpower.com.

About Emerson

St. Louis-based Emerson (www.gotoemerson.com) is a global leader in bringing technology and engineering together to provide innovative solutions to customers in electronics and telecommunications; process control; industrial automation; heating; ventilating and air conditioning; and appliance and tools. Emerson sales in fiscal 2003 were $14 billion.

Forward-Looking and Cautionary Statements

Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and currency conditions, market demand, pricing, and competitive and technological factors, among others, as set forth in the company's most recent Form 10-K filed with the SEC.

Contacts

Emerson
Mark Polzin, 314-982-1700

Contacts

Emerson
Mark Polzin, 314-982-1700