ACHRNEWS

Feb. 20, 2002: Invensys Announces Reorganization, Future Strategy

February 20, 2002
LONDON, England — Invensys plc, headquartered here, has issued a major announcement regarding the future of the company. Rick Haythornthwaite, Invensys ceo, recently charted the new corporate strategy, which aims to sharpen its focus, boost earnings quality, reduce debt, and improve cash flow.

One of the key features of this strategy is the establishment of two core divisions, Production Management and Energy Management. The Production Management division will be comprised of Foxboro, Wonderware, Triconex, APV, Eurotherm, and Baan, and will provide production technologies and services to the oil, gas, and chemicals; power generation; discrete and hybrid manufacturing; and other sectors.

The Energy Management division will combine Energy Solutions, Metering Systems, Appliance and Climate Controls, and Power Systems. This division will address markets connected with power and energy infrastructure, and with buildings for industrial, commercial, and residential usage.

To cultivate business with strong upside, Invensys has created a Development Division. This division will consist of Rail Systems, Wind Power (Hansen), and Power Components. According to Invensys, the Development Division will help to manage businesses with significant upside, pending clarification on strategic fit.

Another major strategy for Invensys is the sale of its Industrial Components and Systems businesses. These businesses consist of Rexnord, Flow Control, Fasco Motors, Sensor Systems, Drive Systems, BAE Automated Systems, Energy Storage, and CompAir. The sale of this division, according to the company, will help to drive down debt.

One of the final major changes is the creation of key performance teams that will focus on customer relationships, service and project delivery, and supply chain efficiency.

For more on the changes taking place at Invensys, visit www.invensys.com (website).

Publication date: 02/18/2002