Meeting Minutes September 21, 2004

1. Meeting Minutes September 21, 2004 • Net Materials • FY05 Net Materials currently at +5.2%, +$5.5M impact • FY05 reverse auction plan – $13.0M; details should be on the Emerson website by the end of the week • Everyone is responsible for their projects • Consolidate Finish Goods Planning into Rosemont • Establish transition date for balance of finished goods – Mark D’Amico, TOD by October 1 • Establish FY05 inventory plan for finished goods– Mark D’Amico reorganize, Suzanne Belinky to review • Cyndi Knackstedt & Eileen McSharry to provide the information they have to Suzanne Belinky • Shantou, SSI & Jinan need to have forecasts & level loaded orders • Map out new sop process & review consignment program w/ Finance – Mark D’Amico, August 10 • Contact Management - Review open item list WEEKLY • Change what prints on PO's, testing templates, rollout by end of September • MIN update • Monthly corrections of missing supplier codes to be sent to Steven – will have 1 week to complete for review at following week’s meeting • Min Freight Terms, Port Codes, Title Transfer – Traci Grever to manage input • Correcting duplicate supplier codes – Michael Skrypek to follow up • Validate Clause Codes • October 5-6, Grana Procurement meeting, commodity managers plan to attend • Standard costs to be reviewed this week DUE FRIDAY – steel is the only commodity to be updated without firm price agreements

2. Meeting Minutes September 21, 2004 • Susan Channell • Auctions: • Spinning auction – October, GMDC putting drawings on disc • Enclosure auction – 2nd Quarter FY05, visited Mode, MPC to be scheduled • Stampings – locknuts pushed to October, add HCS clips (currently at CBC) • Mark D’Amico – absent • Auctions: • Fortron power supply auction September 16th $2.2M • Ballast traditional RFQ issued end August, response due September 30 • Pursuing documentation from Magnatek to source power supplies from an alternate supplier • Dennis Demott • Tool management – sending letter to suppliers asking to verify and mark all tools • Conference call scheduled with Columbus & Lexington to discuss too purchases in China • Visiting local die cast suppliers for evaluation, 4 audits still to complete • Traci Grever – absent • Jinan supply chain improvement – FOB pricing rec’d, next work with MCC, present cost & service improvement, $35K savings • Visiting Lexington September 9/10 to review tool imports • Steven Kim • Auctions: • Bulk lead wire auction implementation progressing; samples received, status? • Wire harness auction – September 14, $20K savings potential • Nomex light, Engineering Re-design – implementation early October • Corrugated consolidation – marketing needs to establish standards • TOD price increase –rejected • Cyndi Knackstedt • Integrate supplier performance into BPIC'S – plant review meeting September 22

3. Meeting Minutes September 21, 2004 • Victor Lopez • Auctions: • Machine parts & painting $400K – October for Difa business, target 10% savings • Remak contract – Ron put on hold • Quotes on Alloy parts from México suppliers – $200K savings potential • Putting together visit schedule for México sand cast suppliers in Monterrey area • Eileen McSharry • Magnetek field returns in process, problems with reworked units • Started planning TOD items • Michael Skrypek • Auctions: • Rubber $0.4M – October • Fasteners • Fastener consolidation project –GMDC received drawings, data clean up due October 31 • Fastenal México – dead inventory list, need to cross with GMDC data • Move Birch Hill fasteners to Fastenal 7% savings, 1 year inventory – in process • USA Tube – found additional stock in Stephenville • Floyd Yang – absent • Working on Disa tools – 13 tool A/R’s approved & ordered • Inspecting EMT fittings again due to new personnel at SSI & Shantou, starting inspections at Grandlite • Establishing inspection criteria for Lexington stampings • Tom Yates • Auctions: • Glass – data gathered, auction in January • Sending form 85 RFQ early October • Is there an opportunity for Floyd Yang to help ATX France with quality issues – follow up with Patrick Devaux

4. April 20, 2004 Commodity ReviewFollow up items • Purchases in Mexico need to be in Pesos • Victor Lopez / Sergio Platon - Victor send updated list – June 1 (List sent 6/18) • Need clarification on USA based suppliers with México operations • Identify solutions to currency risk as a general topic • Mark D’Amico / Tom Yates – purchase in USD & establish a currency band; Suzanne Belinky to review proposal • Can Stephenville make AMC50 stampings? • Push circuit breaker project out 6 months – August 2004 • Steven Kim – Eaton price increase rejected, Steven Kim/Suzanne Belinky schedule visit to Houston • Electrical distribution auction - work with Marketing to award to a customer • Steven Kim –working w/Tom Muller – 3 quotes received • Communicate price increases quickly to Marketing • All - ongoing • Get involved in capital and MRO purchases • Suzanne Belinky – ongoing • Have ownership for all commodities including Emerson leveraged • Suzanne Belinky - ongoing • Provide details of ATX ballast project to Mike Bryant - Mark D’Amico (Complete) • Hold quarterly hedging meetings - Michael Skrypek, monthly schedule established, expand to include steel (Complete)