Document QJogxEeJNgzzXYY9bRr1yzNM6

Information about Cooper's foreign currency forward exchange contracts m excess of $5 million at December 31, 2000 is presented below The contracts matured during 2001 The notional amount is used to calculate the contractual payments exchanged under the contracts The notional amount represents the U S dollar equivalent U S Dollar Functional Currency Buy Pounds Sterling / Sell U S Dollars Notional amount Average contract rate Buy Euros / Sell U S Dollars Notional amount Average contract rate 2001 (in millions, where applicable) $ 17 6 1 476 $ 11 9 09020 The following transactions were implemented to partially align Cooper's interest rate exposure profile with its short term interest rate expectations m an economically efficient manner that is consistent with its tax position During 2001, Cooper sold at a premium U S Treasury securities due November 2002 Cooper obtained these securities pursuant to a repurchase agreement containing provisions that limit Cooper's interest rate exposure under this agreement to a maximum cost of $7 0 million The repurchase agreement will be settled immediately prior to the maturity of the securities Settlement of this transaction will not require any financing by Cooper and this transaction does not create an asset or liability, other than as described above The face amount of the securities was $10 billion Also during 2001, Cooper purchased at a discount Federal Home Loan Mortgage Corporation Notes due February 2003 and immediately transferred these notes pursuant to a securities loan agreement Subsequently, Cooper eliminated any potential cost under the securities loan agreement and realized a gam of approximately $19 million The securities loan agreement will be settled immediately prior to the maturity of the notes Settlement of this transaction will not require any financing by Cooper and this transaction does not create a liability The face amount of the notes was $480 million In 1999 Cooper entered mto a similar executory contract Upon settlement of the contract in 2000, Cooper realized a $7 3 million cost, its maximum exposure under the 1999 executory contract See Note 16 of the Notes to Consolidated Financial Statements for additional information regardmg the fair value of Cooper's financial instruments Euro Conversion On January 1, 2002, the introduction of the single European currency, the euro, was completed with the launch of euro bank notes and coins as legal currency within twelve of the fifteen member states of the European Union Businesses m participating countries will conduct transactions m the euro and must convert their financial records and reports to be euro based Cooper estimates that approximately 8% of its 2001 revenues, 7% of its 2000 revenues and 10% of its 1999 revenues came from countries that adopted the euro Cooper has assessed its information technology systems and the risk to its busmess of the euro conversion and does not expect the conversion will have a material effect on its results of operations 23