Date: January 5, 2007

Eaton Announces Acquisition Of Power Products Ltd.’s Power Protection Business

CLEVELAND … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) announced today it has agreed to acquire the Power Protection Business of Power Products Ltd., a Prague-based distributor and service provider of Powerware® and other uninterruptible power systems, for $1.6 million. The transaction, expected to close in the first quarter, is subject to regulatory approvals and other customary closing conditions.

The Power Protection Business of Power Products Ltd. had 2006 sales of $3.2 million. The business employs 13 people in offices in Prague and Brno, Czech Republic; and Bratislava, Slovak Republic.

“The acquisition of PPL’s Power Protection Business will strengthen our power quality systems offerings by providing access to established channel structures and customers in the Czech Republic and Slovak markets,” said Randy Carson, Eaton senior vice president and president – Electrical Group.

In the electrical industry, Eaton is a global leader in electrical control, power distribution, and industrial automation products and services. Through advanced product development, world class manufacturing methods and global engineering services and support, Eaton provides customer-driven solutions under brand names such as Cutler-Hammer®, Powerware®, Durant®, Heinemann®, Holec®, and MEM®, which globally serve the changing needs of the industrial, utility, light commercial, residential, and OEM markets. For more information, visit Eaton’s Electrical Group website at www.eatonelectrical.com.

Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 60,000 employees and sells products to customers in more than 125 countries.

Contact: Kelly Jasko
(216) 523-5304
kellymjasko@eaton.com