Rueil-Malmaison, France, August 1, 2007 – Schneider Electric announced today the acquisition of
California-based Pelco Inc., a privately held company. Pelco is a worldwide leader in the design,
development and manufacturing of video security systems.

Pelco will further strengthen Schneider Electric’s Building Automation offering

Commercial, industrial and residential buildings represent more than 50% of Schneider Electric
business. Building Automation, which encompasses power and HVAC control, electronic security
and fire safety, is one of Schneider Electric’s new businesses. The acquisitions of TAC, Andover
Controls and Invensys Building Systems have enabled the Group to become a major player in that
business.

Security management, power and HVAC control are increasingly integrated into a unique building
automation system to answer growing customers’ needs for security and energy efficiency. This
integration provides customers with significant savings on both investment and operating costs.
Through the acquisition of Pelco, Schneider Electric rebalances its Building Automation solutions
portfolio by reinforcing its already existing security platform (sales of €155 million in 2006) and strengthens its ability to offer fully integrated systems.

The video security industry is the most attractive segment of the security industry. It is shifting from pure analog communication protocols to more high value-added IP protocol and software based solutions. It complements/replaces other security systems such as intruder detection, fire alarm or access control.

Pelco is the best possible fit for Schneider Electric to expand into building automation and
security

- Leader in the fast growing video security industry;
- Highest brand recognition in the industry;
- Broadest product line in the industry with the unique ability to offer full end-to-end solutions;
- Strong innovation capabilities with significant R&D investments representing 7.5% of sales;
- Premier customer base thanks to world-class technical support and customer service;
- Strong sales & marketing organization with a wide geographical coverage (130 countries);
- Solid track record of above industry growth with a CAGR of 21% over the period 1997-2006
(sales of $506 million in 2006);
- Significant potential for profitability improvement through operational leverage (EBITDA of
$46 million and EBITA of $30 million in 2006);


Pelco will report into TAC, Schneider Electric’s Building Automation Business Unit, and will take
leadership of its present Fire & Security Product Division. Significant synergies will occur from the leveraging of Schneider Electric’s Building Automation businesses, including their respective distribution networks and the possibility to...