Emerson to acquire Stratos International

May 14, 2007
MAY 14, 2007 -- Holders of Stratos International common stock will receive $8.00 per share in cash for their shares.

MAY 14, 2007 -- Stratos International (search for Stratos) announced that it has agreed to be acquired by Emerson (search for Emerson). Under the terms of the agreement, the holders of Stratos International common stock will receive $8.00 per share in cash for their shares, for a total consideration of approximately $118 million, or an aggregate consideration of approximately $85 million, net of acquired cash. The proposed transaction is subject to customary regulatory approvals, approval by Stratos International's stockholders, and satisfaction of other customary conditions.

Phillip A. Harris, CEO and president of Stratos, said, "We are delighted that Emerson recognizes the strength of the company we have built over the last several years and see it as a way of further enhancing Stratos business through Emerson's highly successful distribution network. Over the past nine months, we have explored and evaluated various strategic alternatives, including a possible sale of the company. We have concluded this process and believe that an acquisition by Emerson is the best alternative for our stockholders, customers, and employees."

CIBC World Markets Corp. is acting as exclusive financial advisor to Stratos.

Stratos International designs, develops, and manufactures RF, microwave, and optical subsystems, components, and interconnect products used in telecom, enterprise, military and video markets. Emerson, based in St. Louis, provides products via its network power, process management, industrial automation, climate technologies, and appliance and tools businesses. Sales in fiscal 2006 were $20.1 billion.

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