Madison Heights, Michigan, August 26, 2005 -- McNaughton-McKay Electric Company is pleased to announce the acquisition of Southfield, Michigan based Phoenix Automation Group. Phoenix Automation Group has consistently been a top distributor of DVT Machine Vision products in the region and brings the specialty sales and support functions of machine vision to McNaughton-McKay. A new division of McNaughton-McKay has been formed and will be called Vision and Traceability Group (VTG).

"There are many tools being offered to manufacturers today that promise to meet unprecedented quality and production objectives. Without the right partner, selection of the right solution, and more importantly, the successful implementation of that solution can be a risky, time-consuming, and expensive endeavor. Historically, our customers have come to rely on McNaughton-McKay as their partner when it comes to leveraging emerging technology, and by combining the strengths of both of these fine companies we will continue that tradition. “The new VTG division will offer Machine Vision based products and solutions to meet the challenges our customers face in the areas of quality, traceability and flexible manufacturing”, said Rick Dahlstrom, Corporate Vice President of Sales and Marketing, McNaughton-McKay Electric Company.

“This acquisition positions McNaughton-McKay as a premiere solutions provider for machine vision and traceability solutions to customers in Eastern Michigan and

Northwest Ohio in a way that could only happen with the combination of both organizations’ incredible strengths,” said William J. Amato, President of Phoenix Automation Group, Inc. and now Director of the Vision and Traceability Group (VTG).

McNaughton-McKay Electric Company, headquartered in Madison Heights, Michigan and founded in 1910, is one of the nation’s largest distributors of electrical products in the Automation, OEM, MRO and Construction arenas. The ISO 9000 certified company employs over 850 people in 23 locations and serves over 10,000 customers in the United States and Germany.

For further information contact:

William J. Amato, Director, VTG 586-255-7272