| Q. |
What is a two-for-one stock split? |
| A. |
In a two-for-one stock split, effected as a stock dividend, the shareholder receives one additional share for each share he or she owns. |
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| Q. |
Why are you splitting the stock now? |
| A. |
Cooper Industries, Ltd.'s Board of Directors made a decision to split the stock in order to make the shares more affordable to a broader range of potential investors and to increase liquidity in the trading of Cooper Industries shares. |
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| Q. |
How does a two-for-one stock split actually work? |
| A. |
After a two-for-one stock split, shareholders receive an additional share for every share they currently own and will therefore have twice as many shares after the split as before the split. Accordingly, the price of each share will be roughly half the previous price, though the total value of the holdings immediately after the split will be the same as before the split. For example, a shareholder who owns 100 Common Shares of a company at a market price of $100 as of the record date has a total value of $10,000. After the split, this shareholder will own 200 shares valued at approximately $50 per share for a total investment value of $10,000. The investment value to the shareholder remains the same until the stock price moves up or down. |
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| Q. |
Did the shareholders vote to approve the stock split? |
| A. |
Shareholder approval was not needed because the split was affected as a stock dividend and because the number of shares outstanding after the split is still below the maximum number of shares already authorized by our shareholders. Only Board of Directors’ approval was necessary. |
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| Q. |
What exactly am I receiving? |
| A. |
For each Cooper Industries, Ltd. Common Share held of record at the close of business on February 28, 2007, you received one additional share of Cooper Industries, Ltd. stock. Since the stock split shares were issued to registered shareholders in book-entry form rather than in the form of a stock certificate, holders of record did not receive a new stock certificate representing the additional stock split shares. |
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| Q. |
What is “book-entry”? |
| A. |
Book-entry form of registered ownership allows you to own shares without having paper stock certificates in your possession. You are the record owner and enjoy the same shareholder benefits as you would with certificated shares. |
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| Q. |
What are the benefits of book-entry shares? |
| A. |
Book-entry ownership eliminates some of the problems associated with paper certificates such as storage and safety of securities. Book-entry shares also eliminate the requirement for physical movement of stock certificates at the time of sale or transfer of ownership. |
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| Q. |
What should I do with the stock certificates I currently hold? Are they still valid? |
| A. |
The stock certificates that you currently hold are still valid and should not be destroyed or exchanged. Those certificates continue to represent the same number of shares as shown on their face and should be kept in a secure place. You can, for safekeeping purposes, send your paper stock certificates to Computershare for conversion into book-entry shares which will be credited to your account. |
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| Q. |
What happens if I lose my Stock Distribution Statement? |
| A. |
Unlike stock certificates, the Stock Distribution Statement is not a negotiable document, so there is no replacement fee. You can request replacement statements at any time by contacting Computershare, N.A. at 1-800-519-3111 or online at http://www.computershare.com. You will receive an annual statement from Computershare reporting the current share balance in your book-entry account at Computershare. |
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| Q. |
Who can I contact for additional information? |
| A. |
You can contact Cooper Industries, Ltd.’s transfer agent, Computershare, N.A., at 781-575-2725 or 1-800-519-3111 or online at http://www.computershare.com. You can also write to Computershare Trust Company, N.A. at 250 Royall Street, Canton, MA 02021-1011. |
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