Cooper Product Index (CPI 2007) Price Adjustment

The Cooper Product Index (CPI 2007) is a price adjustment mechanism Cooper Power Systems utilizes on some term/blanket contracts to equitably share the risks of commodity volatility. The CPI 2007 Price adjustment charts are shown below for the three product families: Distribution Transformers, Substation Transformers, and Voltage Regulators.

The CPI 2007 price adjustment is applied at time of shipment to the base contract price. For example, if the base price of a distribution transformer is $1,000. When it ships in the third quarter of 2008, with mineral oil fluid, the 13.701% CPI 2007 incremental increase of $137.01 will be applied with the resulting invoice priced at $1,137.01.

Cooper Product Index (CPI 2007) Price Adjustment

Mineral Oil 13.701%	FR3® 15.138%

Mineral Oil 9.931%	FR3® 10.703%

Mineral Oil 7.080%	FR3® 7.595%

The CPI 2007 price adjustment is by nature a positive value, with a 0.00 floor (lowest) value. In the event commodities change rapidly, Cooper Power Systems reserves the right to go to monthly CPI 2007 adjustments.

> CPI 2007 Process