Emerson Process Management Power & Water Solutions Executive Overview

Umer Rafique
Technology and engineering come together to create solutions that benefit our customers, driven without compromise for a world in action

WE-EPM-XX-115 [5]

Emerson 2005 Profile

$17.3 $15.4 $15.3 $14.3 $14.0 $13.7 $15.6

St. Louis, MO Headquarters

$B '99 '00 '01 '02 '03 '04 '05

2005 Highlights
Sales OP* OP Margin* EPS Mkt. Cap.
WE-EPM-XX-115Confidential Emerson [5]

Founded in 1890 in St. Louis, MO Operations in over 150 Countries 275 Locations Worldwide

$17.3B $2.6B 15.0% $3.40 $29B

Approximately 47% of Emerson Sales are Outside the U.S.

114K employees (year end)

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27-Jun-01, Slide 2 * Reconciliation to GAAP measure at the end of the presentation; Market Cap as of 9/30/05

Emerson. Creating Technology and Solutions for a World in Action

Process Management

Climate Technologies

Network Power

Industrial Automation

Appliance Solutions
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Motor Technologies

Storage Solutions

Professional Tools

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Appliance & Tools

Systems & Solutions

Asset Optimization

Measurement

Valves & Regulators

Ovation DeltaV Industry Centers

Chemical Oil & Gas Refining Power & Water Life Sciences Metals & Mining Pulp & Paper Food & Beverage

AMS Suite Services and Technologies

Rotating Equipment Electrical Systems Process Equipment Instruments & Valves

Rosemount Saab Rosemount Micro Motion Brooks Rosemount Analytical Daniel

Fisher Bettis El-O-Matic Shafer

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Revised Nov. 2005, Slide 4 27-Jun-01, Slide 4

FY05 Worldwide Process Automation $24.8 Billion Market

13.4%

16.8%

ABB Yokogawa
2.2% 4.7% -0.5%

11.3%
8.2%

6.7% 6.4%

Honeywell
Invensys Siemens Endress & Hauser Rockwell
04 - 05 Growth
[File Name or Event] WE-EPM-XX-115Confidential Emerson [5] 27-Jun-01, Slide 5

5.0% 4.9% 3.9%

6.7% 8.8% 11.2%

1.4%
Market Participation

Sources: ARC. Western Research, Morgan Stanley Global Insights, Lehman Brothers, Internal Estimates Notes: Re-aligned on Emerson fiscal year. Foreign currencies translated at constant exchange rates.

Customers Agree Emerson #1

Emerson Remains First In Process Control / Automation Systems Since 2002
1997
Honeywell

2001
Honeywell

2002 Emerson
Honeywell
ABB Invensys/ Rockwell

2004 Emerson
Rockwell
Honeywell / Siemens ABB

2005 Emerson
Rockwell
Honeywell / Invensys Siemens

2006 Emerson
Rockwell
Honeywell Invensys / Siemens

Siebe
ElsagBailey

Emerson
Rockwell Invensys

Emerson

1st/2nd/3rd Place Finishes for Process Control Products

Emerson
Rockwell Honeywell E+H Invensys
WE-EPM-XX-115Confidential Emerson [5]

First In Services Rated Very Good or better in 18 Service Categories More than 3-X our closest competitor

38
16 14 9 9 4

Yokogawa [File Name or Event]

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Emerson Growth Through Technology Leadership

$469
$500
40%

31%

$400

~ $354

30%

26%

$300

20%

$200
10%

$100

$0

0%

1995

2005

1995

2005

Engineering & Development Investment ($M)

New Products as a Percent of Sales

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Emersons brands lead the industry

Strong Balance Sheet and Consistent Financial Performance

Process Industry Expertise

Resources of world leader in measurement and control Global presence

Technology & Products

Process product bundling for complete solutions PlantWeb digital architecture

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Revised 15-Dec-04, Slide 8 27-Jun-01, Slide 8

Core Engineering and Manufacturing Functions Performed at Headquarters Facility in Pittsburgh, PA

Ovation $1B in sales Record sales in 2004 #1 North America Power and Water #1 China Power Strong sales growth in Europe, Middle East
Engineering Manufacturing Project Engineering Assembly & Test Training Marketing & Sales Administration

Global Engineering and Service Capability

Pittsburgh, PA Warsaw, Poland Shanghai, China

Baar, Switzerland

Beijing, China

Moscow, Russia Chicago, IL Riverside, CA Berkeley Heights, NJ

Milan, Italy Charlotte, NC

Prague, Czech Republic

Seoul, South Korea

San Diego, CA

Houston, TX

New Delhi, India Singapore

870 Employees
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Tuoketuo 8x600 MW Shangdu 2x600 MW Jingyuan 4x300 MW Xigu 2x300 MW

Emerson is the Leading Supplier to China Power Dalian 2x300 Segment 111,350 MW (30% of Coal Fired Capacity) Fuxin 1x300
Gujiao 2x300 Yushe 2x300 Hejing 2x300 Shengli 2x350 Chengdao 1x390 Baoji 4x300 Daliuta 1x300 Puxi 2x300MW Yaomeng 1x300 Hengshui 2x300 Xibaipo 2x300 Taiyuan 2x300 Anqing 2x300 Dalian 2x350 Dandong 2x350 Tieling 2x300 Yingkou 2x300

Changzhou 4x600
Ligang 4x600 Taichang 2x600

Jingyuan 1x300 Zhangye 2x300 Jiayuguan 2x300 Pingliang 4x300

1. Total 156 Units of Ovation in 63 Plants 2. Total 74 Units of WDPF in 34 Plants

Qiaotou 2x300 Hancheng 2x600 Chengre 2x140

Yangzhou 2x600
Wangting 2x390

Zhangjiagg 2x390
Ligang 2x350

Luohuang 2x600MW Luohuang 1x360MW Guangan 2x300MW Jiangyou 2x300MW Huangpu 3x300 Nanhai 2x300 Shajiao 2x300 Shantou 2x300 Zhanjiang 2x300 Zhujiang 4x300
WE-EPM-XX-115Confidential Emerson [5]

Pengcheng 2x300 Wangting 2x300 Hengshanqiao2x50 Huaibei 2x300 Luohe 2x300 Maanshan2x300 Caojing 2x390 Baogang 2x350

Qingdao 2x300 Shiliquan 2x300 Shiheng 2x300 Weihai 2x300 Zouxian 2x300 Zouxian 2x600 Wugang 2x300 Xiangfan 4x300 Hanchuan 2x300 Qujing 2x300

MinzhuName or Event] [File 1x150

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Shanwei 2x600 Shantou 1x600 Anyang 2x300 Ningde 4x600MW Dongbu 3x350 Yangpu 2x390MW Shaoguan 1x200 Minda 1x110MW

Yuhuan 4x1000 Banshan 3x390 Beilun 2x600 Yuyao 2x390 Zhenghai 2x350

A proud history in the process automation industry

Westinghouse PRODAC -First Digital Computer Control Westinghouse P250, P2000, W2500 & 7300 Systems WDPFII -- UNIX Workstations Ovation Control and Information System

1959

1963

1967 - 1980

1982

1992

1997

1998

2001

2002

Brand transition to Emerson Power & Water Solutions, Inc.

Acquired By Emerson Westinghouse P50 -First Mini-computer WDPF Distributed Control & Information System Named Power Industry Center of Excellence for Emerson

Ovation PlantWeb with AMS Inside

We offer full-scope project management

Engineer Design Procurement Define Project Objectives & Scope Field Audit Project Completion DCS Configuration

Field Prep Work

Project Implement.

Ship Field Equipment Installation

DCS Installation Performance Testing & Acceptance

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Start-Up Unit Commissioning DCS Commissioning Subsystem Check-Out

Power Industry Focus

Offering the competitive edge

More than 3500 systems in the field

Experience spans all types of plant configurations and boiler manufacturers

Babcock & Wilcox, ABB/Combustion Engineering, Foster Wheeler, Pyropower, Riley, Zurn, etc

Turbine control capabilities including mechanicals

General Electric, SiemensWestinghouse, ABB

MHC to EHC replacements

Leading industry supplier of Retrofit and Main Automation Contractor (EPC) solutions

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Emersons Power Solutions

Water & Wastewater Industry Focus

Offering the competitive edge

Skilled with large & small applications, including water treatment, wastewater treatment, pumping stations, SCADA, remote networking, & simulator technology Experience includes City of Detroit, City of San Diego, DC WASA, City of Sacramento, and smaller systems, such as the Borough of Ridgway Benefits include increased automation for complete control, access to realtime data for effective monitoring & control to detect and isolate malfunctions and leaks, and stable maintenance of plant chemistry levels

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Expert Control Technology

Overview Network

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Ovation Incorporates Industry Standards at All Levels

AutoCad for Control Builder

Unix or Windows-based Workstations

Non-proprietary Fast Ethernet CISCO Network

Intel PC -based Controller

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Oracle Relational Database

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Open Computing Standards Throughout the System

Guards against obsolescence
caused by fast moving technology

Lowers long-term life cycle costs Leverages others R&D

investment

Use of off-the-shelf technology

reduces project timeline

Integrates technology driven by

computer industry

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Ovation Control System Architecture

Operator Station
Engineering Station

CISCO Switch

Controller I/O Module

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Expert Control Technology

Network Network

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Ovation network Fast Ethernet implementation

Pure unaltered IEEE 802.3 Ethernet in a fail-safe scheme Ethernet switches with a buffer for each port avoids data collisions

Maximum redundancy
Dual Ethernet switches Dual-ported Ethernet NIC cards Fast 100 megabit speed

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Flexible, Ovation network Fast Ethernet architecture for multiple units

All communication is full-duplex Ethernet switches used to eliminate network collisions
Gigabit Ethernet Gigabit Ethernet

100 BaseT Ethernet

100 BaseT Ethernet

100 BaseT Ethernet

100 BaseT Ethernet

100 BaseT Ethernet

100 BaseT Ethernet

Unit 1

Unit 2

Unit 3

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Expert Control Technology

Controller & I/O System

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The industrys most powerful controller

Intel Celeron 400MHz PC processor

Redundant processors, power supplies and communications

Originates up to 16,000 points Automatic, bumpless failover to back-up controllers Off-line simulator capabilities Full 32-bit, preemptive multi-tasking environment Comprehensive built-in diagnostics Watchdog functions Passive backplane No active components

Few connections, high [File Name or Event] reliability WE-EPM-XX-115 [5]

Emerson Confidential 27-Jun-01, Slide 26

Standard PC architecture for flexible, low-cost operation

Industry standard PC architecture with passive PCI bus Direct interface to I/O products Ovation Local and remote I/O WDPF Local and remote I/O

Supports connection to field-level devices via PlantWeb Supports connection to third-party systems using network and standard applications protocols
Modbus/TCP GE Mk V/VI GSM A-B DF1

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Expert Control Technology

I/O Modules

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A full line of analog, digital, and special-purpose modules

Analog
13-bit input, 8 channels 14-bit input, 8 channels RTD input, 4 channels Output, 4 channels

Digital
Input, 16 channels Contact input, 16 channels SOE, 16 channels Output, 16 channels Relay Panels

Special Purpose: HART

Link controller Loop interface

Turbine: Speed detector

Valve positioner Servo driver

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Modular design simplifies operation and maintenance

Up to 2 I/O modules per base Electronic Module Wire Strip Gauge

Personality Module

Spare Fuse Holders

(2 per module)

Automatic Interconnection Of I/O Bases

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Local I/O interface capacity

Maximum Local I/O Configuration

Controller Controller
I/O Interface I/O Interface

Up to 2 interfaces per controller Up to 8 branches of I/O per I/O interface

Up to 8 modules per I/O branch

For a total of up to 128 1/O modules per controller

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Fast installation and configuration

Single-point DIN rail mounting Built-in connectors eliminate power and communication wiring Integrated module latching requires no tools Configurable software -- no jumpers or thumb wheels Low power consumption and HVAC costs Surge protection Color-coding for fast module type identification

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Expert Control Technology

Microsoft Windows Platform

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Ovation Developer Studio Control Builder

Standalone or part of the Ovation Developer Studio

Uses AutoCAD 2000

Adheres to standard AutoCAD rules allowing users to develop control with AutoCAD tools such as cut & paste Improved performance for sheet processing and graphics building

Allows use of multiple sheets inside a single Control Builder session

Easy to customize tool bars and menus

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Control Builder based on standard AutoCAD

Powerful set of algorithms represented as standard SAMA and Boolean symbols recognized by all I&C personnel Built-in tracking ensures bumpless transfers

Automatic generation of executable code and documentation Produces active drawing in graphic format for monitoring, tuning and troubleshooting

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Ovation Developer Studio Provides Powerful Engineering Software

System engineering power tools integrated into one application Integrated configuration for drops, I/O, database, security, graphics, alarms, and control

Explorer-like interface
Interacts with the Ovation System Database (Oracle 8)

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Ovation Control and Information Technology

Turbine Interface

WE-EPM-XX-115 [5]

GE Redundant Interface
Operator Station
Engineering Station

CISCO Switch
TCP/IP (100MHz)

Controller
I/O Module

OR

GE Mark V/VI

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RS232 (15KHz)

GE Mark V/VI Interface

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GE Hardware Interface

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Driver Configuration

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Expert Control Technology

AMS Suite: Intelligent Device Manager

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AMS Suite

AMS Suite is a software solution that enables predictive/proactive maintenance practices and provides maintenance and operational benefits.

AMS Suite can provide:

Reduced Capital and Engineering Costs Reduced Maintenance & Operating Costs Increased Availability Reduced Cost of Safety & Regulatory Compliance Reduced Process Variability

WE-EPM-XX-115Confidential Emerson [5]

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Why Predictive Intelligence? Catch Problems Before They Occur

100%

Equipment Health

advanced warning = time to respond

Time

0%

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Emerson Process Managements Strategy Is to Solve These Problems

By embedding predictive intelligence throughout the plant, we improve output, lower cost and make the plant easier and safer to operate
Embedding predictive intelligence throughout the plant to improve output and lower cost

Digital automation and asset management systems let you make decisions to optimize production and availability.

Digital valves tell you of excessive wear, improper installation or process variations that may cause service interruptionand tell you how to correct.

Remote monitoring lets you securely view any aspect of your digital plant, right down to a specific device.

Measurement devices can warn you of a plugged impulse line with time to correct and avoid a shutdown.

Asset management software detects vibration and provides lube oil analysis to detect premature wear helping prevent mechanical failure.

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Intelligent devices provide a great deal of information

Configuration Status / Alerts Diagnostics Calculations
Electronics Failure Sensor Failure Process Condition Configuration Warning RTD Drift RTD Life Estimation etc... Electronics Failure Sensor Failure Reverse Flow Empty Pipe Calibration Error Process Condition Configuration Warning etc...

Electronics Failure Sensor Failure Process Condition Configuration Warning Plugged Impulse Lines etc...

pH Electrode Aging Glass Electrode Failure Reference Electrode Failure Reference Electrode Coating Reference Electrode Poisoning etc...

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ValveLink SNAP-ON for Advanced Diagnostics

Valve Signature Dynamic Error Band Drive Signal Output Signal Step Response

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Ovation General Architecture:

Conventional and Fieldbus

AMS Station
AMS

Operator Station

Engineer/Developer Studio

Fast Ethernet Network Ovation Controllers Ovation I/O Ovation FOUNDATION Fieldbus Gateway

Conventional and HART Devices (4-20 mA)

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Fieldbus Devices (H1 Fieldbus)

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Plant Optimization & Performance Software

WE-EPM-XX-115 [5]

PWS Advanced Process Control Smart Process - Plant Optimization Software

A New Suite of Process Optimization & Advanced Control Products Designed to Improve Plant Performance & Reduce Operating Costs

PLANT OPTIMIZATION SOFTWARE BY EMERSON

WE-EPM-XX-115Confidential Emerson [5]

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SmartProcess Target Areas

Environmental Management

Unit Performance

Fleet Optimizer NOx / SO2 cap compliance Combustion (NOx) Optimizer SCR Optimizer FGD Optimizer Precipitator Optimizer

Combustion (HR) Optimizer Sootblowing Optimizer Cyclone Boiler Optimizer Fluidized Bed Optimizer

Generation Management

Operational Flexibility

Global Performance Advisor Economic Optimizer

Steam Temperature Optimizer Unit Response Optimizer

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Benefits

Improve heat rate improvements 1/2% to 1 1/2% Reduce NOx 15% to 35% Reduce opacity 15% to 30% Increase capacity 1% to 2% 1% of MCR per minute improvement in ramp rate Reduce tube leaks and be specific to the plant Actual Savings would associated forced outages would be different for different plants And Improve fleet management capabilities Optimize plant environmental equipment such as SCRs and scrubbers

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Years of experience in process control design, implementation, and field installation

AES Alliant Energy Ameren Energy Generating American Electric Power Constellation Power Source Generation Dairyland Power Cooperative Duke Power Dynegy Power Generation Eastman Kodak (Tennessee Eastman) Edison Mission Energy more than 200 SmartProcess im. T. With Electric Energy Inc. Elektrownia Kosciuszki S.A. Elektrownia Kozienice, S.A. Entergy installations on many different Louisiana Florida Power & Light Grand River Dam Authority Keyspan control systems, Emerson is the Energy Korea Electric Power Corporation (KEPCO) market leader in advanced control.Nevada MidAmerican Energy Mirant Corporation Power Panda Energy International PSEG Power Public Service of New Hampshire Saudi Electric Company Seminole Electric Cooperative Sempra Energy Resources Southern California Edison University of Michigan We Energies Xcel Energy Zespol Elektrownia Ostroleka, S.A.
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Expert Control Technology

Summary Network

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Why Emerson Process Management? Integrated solutions that keep you competitive!

Ovation designed to track technology

Commitment to achieve competitive advantage for you Financial stability and strength of Emerson Proven project management capability Innovative performance improvement software solutions

WE-EPM-XX-115Confidential Emerson [5]

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Ovation 25-Year Working Guideline: Forward Compatibility!

Workstations/PCs
1.2 GHz UltraSparc III

Solaris

SUN Blade 150

Merced 64Bit

Same Ovation Application Software

Windows 2 GHZ

Gigabyte Fast Ethernet

Networks
Cisco 100 Mbyte Fast Ethernet

Same Ovation Application Software

Controllers
500 MHZ 266 MHZ Micro-Industries

Same Ovation Application Software

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Our Products & Services are Customer Proven for Power

The Ovation System is fully integrated throughout the units processes. The system permits operators in the main control room to control and monitor critical plant processes, while providing data to the plants main computer

Contributed to reduced startup duration of first truncated combined cycle plant by 3 months Educated operators on new technology before startup Verified and validated new controls
One major benefit was dramatically reduced plant commissioning from 4 months to 1 month. -Hsiu-Chen Wang Consolidated Edison ERRP
WE-EPM-XX-115Confidential Emerson [5]

Completed plant testing and startup 3 months ahead of schedule Lowest Sox, NOx, and dust emissions in all of Korea Minimized cable and maintenance costs due to simplified circuitry

$3M saved in hardware reuse of I/O $1M saved labor by eliminating rewiring 3% increase in load dispatch +/-5 degree F regulation improved during load ramps
Emerson was the only vendor that provided a total solution that met not only our interface specifications, but our process control goals. -Steve Lowery Progress Energy, Roxboro

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Our Products & Services are Customer Proven for Water and Wastewater
When we did an evaluated bid process, Emersons technical and training expertise put them over the top. -Bill Hendrix SRCSD

$1M saved through costeffective migration path 25% reduction in chemical costs 40% reduction in process air demands Increased reliability for continuous operation since 1992
Working with Emerson has allowed ALCOSAN to operate our plant more efficiently and do our jobs better. -Douglas Jackson ALCOSAN Event] [File Name or
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25% under overall project budget $5M saved by retaining previous I/O $110,000 saved in testing and training costs Installed 11 months ahead of schedule

25% reduction in chemical and water usage during backwash Improved record keeping by 90% Improved communication with reservoir Eliminated obsolescence issues
From day one the Emerson people listened to us; they went the extra mile to get our system implemented. -Ray Imhof Borough of Ridgway Water Treatment Plant

WE-EPM-XX-115Confidential Emerson [5]

Expert Control Technology

THANK YOU

WE-EPM-XX-115 [5]