Franklin Electric Company Acquires Coverco S.p.A.

08.01.2002

BLUFFTON, Ind., Jan. 7 /PRNewswire/ -- Franklin Electric Co., Inc.

(Nasdaq: FELE) announces the acquisition of Coverco S.p.A., located in Motta

di Livenza, Italy. Coverco is the leading manufacturer of oil filled

submersible electric motors and a leading manufacturer of above ground

standard and custom engineered TEFC electric motors for pumps, industrial

ventilation systems and other applications.

Terms of the acquisition have not been disclosed. The transaction will be accretive in 2002.

(William H. Lawson, Chairman and Chief Executive Officer of Franklin

Electric Company, stated, "Coverco has a substantial market position in 4-inch

oil filled submersible electric motors for water well pumping, mine dewatering

and other water systems and energy applications. Coverco's submersible

electric motors are based on a different design concept compared to Franklin's

encapsulated submersible motors and are generally sold in different

geographical markets from Franklin's principal markets. There is minimal

overlap in customers or markets between the two companies. We believe this

acquisition will strengthen our ability to serve Southern Europe and the

developing regions of the world. Coverco's above ground TEFC electric motors

are complimentary to Franklin's above ground special engineered industrial

electrical motors and the acquisition of Coverco creates an opportunity for

optimizing the design of these motors.

"We intend to operate Coverco as an independent company with its own Board

of Directors, management, brands and products. Coverco has a unique set of

customers, and we believe we can best serve these customers by not making

changes in the way they have been served by Coverco. We plan to continue

Coverco's submersible and above ground electric motor products, brands and

controls.

"We are pleased to announce that Mr. Franco Neri, one of the three

founders and a current Director of Coverco, will serve as the new President of

Coverco. This will assure uninterrupted continuity in Coverco's leadership.

Franco has an outstanding reputation in our industry both for his personal

qualities and for his electrical motor designs. In addition, we will have the

on-going counsel, wisdom and experience of Giacomo Silvestrini, Founder,

President and Director and Gianemelio Silvestrini, Founder and Director, who

will serve as Advisors to the new Coverco Board of Directors. We are also

pleased that the other members of Coverco's management team have agreed to

remain with the company and become part of the Franklin family."

Giacomo Silvestrini, Coverco founder, President and Director, added, "I

speak for all Coverco employees, when I say that we are very pleased to join

the worldwide Franklin Family. We know Franklin's management well and they

are deeply committed to the same values that have made Coverco successful. We

know Franklin has the financial strength and other resources needed to

maximize the growth of our companies."

Franklin Electric is the world's largest manufacturer of submersible water

and fueling systems motors, a leading producer of fueling systems products,

and a supplier of industrial motor products and electronic controls.

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