New Johnson Controls Services Increase Electric Power Reliability and Quality; Strategic Alliance With Eaton Corporation Announced

To meet the need for reliable, high-quality electric power in nonresidential buildings, Johnson Controls (NYSE: JCI) now offers Power Assurance Services through a strategic alliance with Eaton Corporation's (NYSE: ETN) Cutler-Hammer business unit

MILWAUKEE, April 2 /PRNewswire-FirstCall/ -- To meet the need for reliable, high-quality electric power in nonresidential buildings, Johnson Controls (NYSE: JCI) now offers Power Assurance Services through a strategic alliance with Eaton Corporation's (NYSE: ETN) Cutler-Hammer business unit. Through Power Assurance Services, Johnson Controls provides customized plans and a complete package of systems, equipment and expertise for customers across a wide range of industries.

Every year, U.S. businesses lose as much as $120 billion because of power reliability problems, according to a recent study by Primen, an independent energy data firm(1). An earlier study by Duke Power showed that businesses lost, on average, $11,000 per momentary power outage; losses were significantly greater for firms with critical applications such as data centers and e-commerce operations.

These findings were confirmed by the Johnson Controls advanced marketing team through extensive customer research. The firm then sought a partner that was a leader in power management and electrical systems, ultimately selecting Eaton's Cutler-Hammer business. Eaton has developed the nation's leading power quality and reliability solution, while Johnson Controls is a leader in energy efficiency, performance contracting, building management and environmental controls.

"Power reliability is a key issue in today's economy, and the alliance with Eaton's Cutler-Hammer business gives Johnson Controls even more tools to help our customers address business challenges in this area," said Brian Stark, president of the Controls Group for Johnson Controls. "Customers know they can turn to us for expert knowledge of their buildings. We help them manage their facilities as true assets that can contribute to the bottom line, and continually consult with them about how to operate more efficiently."

"Dependence on digital-based technology means today's facilities must have the proper infrastructure to ensure the delivery of quality electric power that is free from outages, surges, sags and other system failures," said Randy Carson, Eaton senior vice president and group executive. Power Assurance Services can significantly increase building and system security and reduce safety liabilities.

The goal of Power Assurance Services is to expose inefficiencies, identify effective solutions and implement processes that maximize energy efficiency and power reliability while producing substantial savings and mitigating risk for a customer. Plans are customized by market and may include the following: back-up power systems, monitoring and controls, grounding integrity, surge protection and load management improvements.

"Power management is the next logical step toward providing total systems integration," said Dave Matasek, senior marketing manager of power management services for the Controls Group of Johnson Controls. "In the past we have integrated HVAC, fire and security into our controls systems. With the Eaton alliance, power management has now been added, completing the solution we offer customers."

Cutler-Hammer brand electrical power management systems will integrate with Johnson Controls Metasys(R) building automation systems. This integrated system is part of the support infrastructure for the Power Assurance Services offering.

Through Power Assurance Services, customers will realize the following benefits:

-- Reduced business risk because of increased power reliability

-- Increased revenue opportunity through improved power quality

-- Reduced operations and maintenance costs through coordinated systems

-- Decreased or avoided capital expenditures because of integrated systems

The power requirements of a telecom data center are very different from the requirements of a healthcare facility or an office building. For that reason, Johnson Controls and Eaton's Cutler-Hammer unit will offer customized solutions that deliver the highest quality and most reliable power for a given industry and customer.

Power Assurance Services are part of Johnson Controls Energy and Power Management Services, which provide customers with total energy and power management solutions.

Johnson Controls, Inc. is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating, interior systems and batteries. For nonresidential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. Johnson Controls, founded in 1885, has headquarters in Milwaukee, Wis. Its sales for 2001 totaled $18.4 billion. For more information, visit the company's Web site at

(1) Primen Study: The Cost of Power Disturbances to Industrial and Digital Economy Companies, June 2001.

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