Eaton share of new joint strike fighter contract to approach $1 billion


CLEVELAND, OHIO… Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today said that its role as a Tier 1 fluid power systems provider to the Lockheed Martin Joint Strike Fighter (JSF) program is expected to generate nearly $1 billion in revenues for the company over the life of the contract.

Eaton's Aerospace business unit, based in Irvine, California, was selected by Lockheed Martin to provide the primary fluid power system for the revolutionary aircraft. The company will have responsibility for the total design, development and integration of the 4000 pounds per square inch (psi) utility hydraulic power system, utility actuation and control valve sub-system, and weapon bay door hydraulic motor.

Alexander M. Cutler, Eaton Chairman and Chief Executive Officer, said, "This award represents a major win for Eaton, and is a validation of our research and development efforts in the area of high pressure fluid power systems for aircraft. Combined with our previously announced contract award on the Airbus A380 for $200 million, as well as a number of other awards, we have now booked nearly $2 billion in future aerospace industry sales within the past six months."

Eaton leads the aerospace industry in the development of superior performing high-pressure hydraulics systems that are lighter and smaller than competing versions, thereby allowing airframe manufacturers more design and build flexibility.

Eaton's Aerospace Vice President, Steven K. Eisenberg, said, "We provide customers with total solutions, not just components. We have a unique ability to design and integrate higher pressure hydraulic power generation systems, which enables the Lockheed Martin JSF team to deliver a weapon system that is affordable, lethal, survivable and supportable at levels previously unimaginable to military aircraft production programs. This 21st century stealthy, supersonic multi-role fighter will be the hallmark for tactical military aircraft for the next 30 years."

The JSF hydraulic system involves Eaton facilities in Jackson, Mississippi, Jackson, Michigan, Los Angeles and Bedhampton, UK. Key components include Vickers? brand 4000 psi hydraulic pumps, motors and motor pumps, reservoirs, manifolds and accumulators, Sterer? brand control valves, and Aeroquip? brand hoses, fittings and quick disconnect couplings. In addition, plants in Glenolden, Pennsylvania and Bethel, Connecticut are involved in supplying the LiftFan? lubricating system.

The Eaton JSF 4000 psi hydraulic power system was designed and developed to meet and exceed all dynamic operation requirements during various aircraft flight phases, including emergency conditions. The program represents the second higher pressure hydraulic power generation system recently awarded to Eaton. Earlier this month, the company won the world's first 5000 psi commercial hydraulic power generation system for the world's largest passenger aircraft, the Airbus A380.

Three versions of the Lockheed Martin JSF are planned. The conventional takeoff and landing (CTOL) variant is designed for the U.S. Air Force. The carrier variant (CV) will be built for the U.S. Navy. The short takeoff/vertical landing (STOVL) version will be built for the U.S. Marine Corps. The United Kingdom is evaluating both the STOVL and CV variants. The first test aircraft is scheduled to fly in 2005 and the first operational JSF will be delivered in 2008. Current plans call for a total of 3,002 aircraft to be built over the life of the program.

Eaton Corporation is a global $8 billion diversified industrial manufacturer that is a leader in fluid power systems, electrical power quality, distribution and control, automotive engine air management and fuel economy, and intelligent truck systems for fuel economy and safety. Eaton has 51,000 employees and sells products in more than 50 countries.

This news release contains forward-looking statements concerning the revenues expected from the JSF program and from other aerospace bookings. These statements are subject to various risks and uncertainties, some of which are outside the company's control. The following factors could cause actual results to differ materially from those forward-looking statements: governmental priorities, unanticipated technological problems or further substantial deterioration of economic and financial conditions in the United States. We do not assume any obligation to update these forward-looking statements.


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Renald Romain