Date: January 29, 2007

PUNE, India ... Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) is continuing to enhance its presence in India through a new and expanded Pune-based, Professional Services Center. The center will include engineering support, research, product development, financial shared services and other Information Technology-enabled services.

“Eaton’s goal is to be a $2.5 billion business in the Asia Pacific region in 2010, and a key part of that growth will be in India,” said Alexander M. Cutler, Eaton chairman and chief executive officer. “With the significant growth in the Asia Pacific region and particularly in India, there are many unique opportunities for us to participate in the development of the infrastructure, manufacturing and power industries.”

Since its inception in 2003 and with an initial focus on the Fluid Power business, the engineering center at the Pune campus has grown in scope and size to more than 400 employees. The team now performs a full range of high-end engineering and development work for all of Eaton’s business segments. It has become an integral part of Eaton’s global engineering workforce, emerging as a major product engineering, design and development center for Eaton’s global customers.

“We are excited to be expanding the scope of our Professional Services Center to tap into this wealth of knowledge,” said Shriram Parameswaran, president of Eaton’s India operations. “By 2010, our employment in the Center has the potential to more than triple in the number of employees.”

“Eaton is focused on enhancing its presence in India in all business segments and on tapping into the diverse opportunities that India offers,” said Parameswaran. “India certainly offers a huge market opportunity in itself, but it also serves as a strategic location to enhance Eaton’s global competitiveness.”

In order to provide for growth and the new teams, create the best-in-class infrastructure and to attract talent, the Professional Services team will move to a new location at the Eon Free Zone, Kharadi, Pune, India.

Eaton Corporation is a diversified industrial manufacturer with 2006 sales of $12.4 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.