FOREIGN SUBSIDIARY OF DELAWARE COMPANY SETTLES CHARGES OF ANTIBOYCOTT VIOLATIONS

The U.S. Department of Commerce announced today that Cooper Tools Industrial Ltda. (CTIL), a wholly-owned Brazilian subsidiary of Cooper US, Inc., a Delaware Corporation, has agreed to pay a $27,000 civil penalty to settle allegations it committed fifteen violations of the antiboycott provisions of the Export Administration Regulations.

"The Department of Commerce stands firm in its policy of opposing restrictive trade practices or boycotts against Israel, and will vigorously pursue those who violate the antiboycott Regulations," Assistant Secretary of Commerce for Export Enforcement, Darryl W. Jackson, said.

The Commerce Department’s Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance, alleged that during June and July of 2004 CTIL furnished fifteen items of prohibited information about business relationships with Israel to persons in Kuwait and the United Arab Emirates.

The antiboycott provisions of the EAR prohibit U.S. persons from complying with certain requirements of unsanctioned foreign boycotts, including providing information about business relationships with Israel and refusing to do business with persons on boycott lists. Additionally, the EAR requires that persons report their receipt of certain boycott requests to the Department of Commerce.

BIS investigates alleged violations of the antiboycott provisions, provides support in administrative or criminal litigation of cases involving the antiboycott provisions, and prepares cases for settlement.

The company voluntarily disclosed the transactions and cooperated fully with the subsequent investigation.