SPX Corporation has announced that it has signed a definitive agreement to sell its BOMAG compaction equipment business to Fayat for approximately $446 million in cash. SPX will use the net proceeds from the transaction to pay down debt. The transaction, which is subject to antitrust clearance and customary closing conditions, is expected to close in the fourth quarter of 2004.

John B. Blystone, chairman, president and chief executive officer of SPX, said, "As part of our continuing efforts to enhance shareholder value through our Value Improvement Process, we conducted a thorough review of BOMAG and its long-term fit within our Industrial Products segment and SPX's overall strategy. As a result of this review, we decided to monetize the asset and have found an excellent strategic owner for the business. We're pleased that BOMAG generated a robust auction process and that the proceeds from this transaction will enable SPX to further strengthen our balance sheet."

BOMAG is expected to have 2004 revenues of approximately $490 million and will now be treated as discontinued operations for financial reporting purposes.

BOMAG, based in Boppard, Germany, is a leading international manufacturer of heavy and light equipment for soil, asphalt and refuse compaction. In addition, BOMAG sells compaction measurement and documentation systems, and is active in the spare parts and service business as well as in the business of machinery for the recycling and stabilization of road beds under repair.

Fayat Group, a privately owned business, is comprised of 75 companies and employs 7,700 people. Based in Bordeaux, France, approximately 20 percent of Fayat's business includes road building equipment. The acquisition of BOMAG completes Fayat's full range of road building products and advances their position as a major player in the global asphalt and road building industry.

SPX Corporation is a global provider of technical products and systems, industrial products and services, flow technology, cooling technologies and services, and service solutions.