SPX Corporation Erisa Litigation

In the Class Action Complaint filed April 23, 2004, and in subsequent pleadings, Plaintiff alleges that Defendants breached their fiduciary duties and otherwise violated ERISA, by causing the Plan to purchase and hold shares of SPX common stock in the SPX Stock Fund (which is composed of SPX common stock and some cash) at a time when, according to Plaintiff, the SPX Stock Fund was an unsuitable and imprudent investment for the Plan. Plaintiff further alleges that Defendants violated ERISA by misrepresenting to Plaintiff and Plan participants the financial status of SPX and, consequently, the true value of the SPX Stock Fund. Defendants were also alleged to have: (1) encouraged excessive Plan investment in the SPX Stock Fund; (2) failed to properly monitor the fiduciaries administering the Plan; and (3) failed to avoid conflicts of interest. Plaintiff sought to recover from the Defendants losses to the Plan, and, indirectly, to the Plan’s participants and beneficiaries caused by Defendants’ alleged conduct.

On July 25, 2005, Defendants moved to dismiss the Complaint. SPX and the other defendants deny all allegations of wrongdoing and contend they have substantial defenses in this lawsuit but are entering into this Settlement for the purpose of avoiding the expense and uncertainty of litigation.

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