Q3 Interim Management Statement

Q3 performance
As expected, the Group produced operating profit before exceptional items in the
third quarter ahead of the corresponding period last year despite the continuing
difficult economic climate.

At Invensys Operations Management (IOM), the conversion of its order backlog
and the benefit of cost savings contributed to a profit performance in line with
the third quarter last year. We continued to experience a reduced rate of order
intake in the period mainly due to customer delays. However as in previous
years, we expect this situation to improve in the fourth quarter of our financial
year and we continue to expect IOM to have a significant improvement in
performance for the second half as a whole.

Invensys Rail continues to perform well helped by work on a number of its large
contracts in new markets and produced profits in line with last year.
Invensys Controls improved profitability over the same period last year, with
stabilisation in demand in both North America and Europe resulting in revenue
similar to the same period last year. New product introductions and the
increasing benefits of restructuring contributed to improved operating margins.

Financial position
Operating cash conversion in the quarter was strong with good achievements by
Invensys Operations Management and Invensys Controls offset by an expected
seasonally weak quarter at Invensys Rail. Net cash and deposits at 31
December 2009 was £292 million.

Outlook
Based upon our current views of our markets and exchange rates, we continue
to expect that the Group will achieve an improvement in performance in the
current year.