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Residential and Light Commercial Products to Receive Increased Distribution in Western Region

Johnson Controls, Inc., the global leader in building efficiency, is pleased to announce a distribution agreement with US Airconditioning Distributors, Inc., to enhance the independent distribution of residential and light-commercial products to dealers in Southern California, Arizona, Utah, Idaho and certain parts of Nevada. Distribution will begin at the end of September 2007.

"This new agreement reaffirms our commitment to the independent distributors and dealers of our York(R) branded residential and light commercial products," said C. David Myers, president of the building efficiency business of Johnson Controls.

US Airconditioning, headquartered in the Los Angeles area, is one of the world's largest privately owned HVAC distributors. The company provides HVAC products for both residential and commercial customers, including equipment, parts and supplies.

The change means US Airconditioning is terminating its distributor relationship with Carrier Corporation in the affected territories. US Airconditioning is committed to continue serving all existing product lines throughout this transition. No immediate changes in US Airconditioning's current distribution strategy or dealer network are planned for any of the regions in transition. Johnson Controls is committed to independent distribution for its residential and light commercial products and has no changes planned currently for the other territories of its distribution network.

"We are excited to announce this strategic relationship with US Airconditioning because it accelerates and strengthens our presence and reach in the Western region, and delivers on our commitment to serve the broad HVAC market," Myers said. "US Airconditioning has a strong and committed dealer network built on its reputation for excellent service and delivery. Because of their innovative ability to expand those relationships, they have become the clear leader in the markets they serve."

"We analyzed the options very carefully and did not make this decision lightly," said John Staples, president of US Airconditioning. "Ultimately our goal is to provide our dealers with the best possible service and grow our business. We found that Johnson Controls shares our vision and is committed to truly partner with us to deliver for our dealers."

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