Dover Reorganizes Into 6 Divisions, 13 Subsidiaries

Dover Corporation (USA) announced a sweeping reorganization, effective January 1, 2005, and coinciding with the company's 50th anniversary. Currently, Dover's portfolio of 49 wildly diversified businesses, with over $5 billion in revenue, is organized into just four reporting market segments. As of 2005, that structure will be modified to 6 market segments containing 13 focused business groupings. Founded in 1950, Waukesha is a leading manufacturer of bearings for a variety of rotating machinery applications, including turbomachinery, motors and generators, industrial, utility, naval and commercial marine industries. Products include tilting pad thrust and journal bearings, sleeve bearings and housings. It was acquired by Dover Corporation in 1977. Fluid film bearings - Waukesha is the world¡¯s largest supplier of engineered fluid film bearings for turbomachinery used primarily in the oil and gas and power generation industries. Applications include gas, steam and hydro turbines, compressors, gearboxes, motors, generators, and a variety of marine and industrial machinery. Waukesha offers the industry's widest range of fluid film bearings, including complete lines of custom-engineered and modular bearing designs, as well as polymer and ceramic designs for individual applications. Magnetic bearings - Waukesha is the leading global supplier of active magnetic bearing systems, with applications for all types of large rotating equipment. Active magnetic bearings are particularly suited for highly demanding applications where long life and low risk of product contamination are important considerations. In August 2001, Waukesha acquired Federal-Mogul RPB, formerly known as Glacier Rotating Plant Bearings, from Federal-Mogul Corporation (USA). • article: Waukesha acquires Glacier RPB from F-M Dover does not break out Waukesha Bearings results separately. However, in its recent third quarter 2004 earnings release, it said, "Waukesha Bearing's bookings increased 84% over the prior year on the strength of large orders for both fluid film and magnetic bearing products and a sizeable order for nuclear waste cleanup equipment." Dover Corporation third quarter 2004 results exceeded expectations, with sales jumping 29% year-on-year to a record $1.44 billion from $1.12 billion in 2003. Earnings rose 55%, to $120.3 million from $84.4 million. Bill Spurgeon, previously Executive Vice President of Dover Diversified, has been named CEO of Dover Diversified, succeeding Jerry Yochum, who will retire at the end of 2004. Besides Waukesha Bearings, Dover's other 48 companies include many well-known industrial brands such as Triton, Heil, Chief Automotive, Rotary Lift, OPW, De-Sta-Co, Warn, Hill Phoenix, and Imaje. The company said it believes the reorganization will better position it for, "enhanced growth by providing increased management oversight of its operating businesses, by expanding the company's acquisition capacity and by supporting the development of future executive management talent." Dover President and CEO, Ron Hoffman, said, "Our highly successful four subsidiary structure was put in place in 1985 at a time when Dover's manufacturing, sourcing, and sales activities were much smaller and largely based in North America. Today, Dover is truly a global company, both in terms of the breadth of the markets we serve and our geographic locations, and our subsidiaries have grown significantly larger and more complex." Mr. Hoffman went on to say, "The changes we announced today establish the appropriate operating framework for our current size and structure, and as we near our fiftieth anniversary in 2005, will help ensure we are developing the right leaders to build on Dover's solid track record of creating value for our shareholders."