StockMaster News for: APPLIED POWER INC (APW)                        Page 1 of 3


     Industry

     Business Wire
     Thursday January 27 2:00am

     WAUKESHA, Wis--(BUSINESS WIRE)--Jan. 27, 2000--Applied Power Inc. (NYSE:
                                                                         ---
     APW) today announced plans to spin off its electronics business from its
     industrial business to create a pure global supplier in the high-growth
     electronic manufacturing services (EMS) sector. The new company, to be
     called APW, will be the largest player in the $90 billion EMS industry
     focused on the fast-growing, integrated electronic enclosures systems
     business. As part of the spin-off, APW will be converted to a Bermuda
     corporation. The spin-off should be tax-free to Applied Power shareholders.

     Applied Power's current industrial business segment will operate on a
     stand-alone basis, and will remain incorporated in Wisconsin.

     The spin-off is expected to be completed by fiscal year-end, at which time
     each Applied Power shareholder of record would receive a dividend of one
     newly issued share of APW for each Applied Power share they hold.

     "Over the past several months, we have been evaluating a range of
     alternatives to separate our electronics and industrial businesses," said
     Richard G. Sim, chief executive officer of Applied Power Inc. "The spin-off
     of APW from Applied Power provides for a clean and efficient separation of
     the industrial and electronics businesses, enabling each company to
     concentrate on its core business. This permits shareholders to make more
     focused investment decisions and allows the market to assign a more
     appropriate stand-alone valuation to each company."

     Continued Sim, "As the largest player in the dynamic EMS industry that is
     focused on the rapidly growing integrated electronic enclosures systems
     business, APW is well positioned to benefit from the significant end-market
     growth and increased outsourcing of electronics manufacturing and
     integration in the datacom, telecom and networking industries. This spin-
     off will provide APW with the focus and financial flexibility required to
     aggressively and effectively pursue growth opportunities on a global
     basis."

Upon the completion of the spin-off, Dick Sim will be chairman of the board
and CEO of APW. Bill Albrecht, currently the global leader of Applied Power's
electronics segment, will be responsible for APW's North and South American
operations. Guus Boel, currently the global leader of Applied Power's industrial
segment, will relocate to the United Kingdom where he will be responsible for
the European and Asian operations of APW. Both Bill Albrecht and Guus Boel will
report directly to Dick Sim.

Commenting on the management appointments Sim said, "Guus Boel will greatly
strengthen the day-to-day leadership of our electronics business in Europe and
our ties to key customers. Because Bill, Guus and I have worked together so
closely for many years, these changes in responsibility will be seamless and
will provide the leadership structure necessary to drive APW to reach its growth
objectives."

Dick Sim will also be chairman of the board of the industrial business. Bob
Arzbaecher will be CEO and Andy Lampereur will serve as the CFO for the
industrial business. Until recently, Bob Arzbaecher was the CFO of Applied Power
Inc. Most recently, Andy Lampereur has held a variety of financial and
operational leadership positions within the industrial business segment and in
the past served as Applied Power's corporate controller.

These management duties are effective immediately, with the new titles taking
effect upon completion of the spin-off transaction.

Added Sim, "I am delighted that Bob has accepted the opportunity to lead the
industrial company. Bob's demonstrated leadership qualities, coupled with his
familiarity with the businesses and their leaders, make him the natural choice
to lead the industrial business as a separate public company. Bob and his team
will be well positioned to focus on growing the business by leveraging our
established brand names, excellent customer relationships and world class
operations."

Credit Suisse First Boston served as financial advisor to Applied Power.

About APW

APW is the most vertically integrated provider of integrated electronic
enclosures systems in the EMS industry. The company offers a full array of
electro-mechanical products and services -- from fabrication to integration and
drop-ship. With over 40 facilities around the world APW is the leading EMS
company with the size and scope necessary to provide end-to-end services on a
global basis.

About The Industrial Business

Applied Power's industrial businesses design, manufacture, sell and distribute a
broad range of standard and customized products sold to retail, industrial and
OEM customers. The businesses hold leading market positions for niche
applications serving industrial markets throughout the Americas, Europe and
Asia. The company's products are offered under such established brand names as
Enerpac, Gardner

StockMaster News for: APPLIED POWER INC (APW)                        Page 3 of 3

     Bender, Power-Packer, Power Gear and Barry Controls.

     About APW

     Contact:  Applied Power Inc.
               Susan Hrobar
               262/523-7775

               or

               Sard Verbinnen & Co.
               Andrew Merrill/Kimberly Polan
               212/687-8080