Date: January 29, 2007

Eaton Announces Construction Of Second Plant In India, Expansion Of Existing Hydraulics Facility

PUNE, India … Diversified industrial manufacturer Eaton Corporation has begun construction of a medium- and heavy-duty truck transmission and component plant in Ranjangaon, India. The facility will have 60,000 square feet (5,575 square meters) of production space. Completion is scheduled for the end of 2007.

The new plant will house machining, heat-treating and assembly operations, and will employ approximately 120 people. Production will be sold domestically in India and will also serve Eaton’s global truck customers. As a wholly owned entity, Eaton’s India operations will be the first truly independent commercial vehicle (CV) transmission supplier in the India market.

“The Ranjangaon plant marks the important entry of Eaton’s Truck business into India and will be Eaton’s second manufacturing facility in the country,” said Alexander M. Cutler, Eaton chairman and chief executive officer.

Cutler also noted the expansion of its existing hydraulics manufacturing facility in Pune and the significant growth of its electrical operations in Delhi, indicating that “Eaton is satisfying a diverse and expanding mix of customers across the country.”

The expansion of the hydraulics operations in India is part of Eaton’s strategy to become a hydraulics systems leader in the Asia Pacific region. Plans are to increase employment by 250 people and add 40,000 square feet of manufacturing floor space by 2010. The facility is an Eaton Center of Excellence (COE) for gear pumps and is being expanded to commence manufacturing of steering control units and hitch valves.

Eaton’s hydraulics manufacturing facility in Pune has been leveraging its strong manufacturing, design and distribution capabilities to position it as a premier supplier of hydraulic components, delivering complete system solutions for the domestic industry as well as for global opportunities.

“Since 1999, Eaton’s footprint in India has been growing steadily,” said Shriram Parameswaran, president of Eaton’s India operations. “Following the opening of our high-end engineering center in Pune, we have enhanced our presence in India in all business segments and tapped into the diverse opportunities that India offers. While India offers a huge market opportunity in itself, it also serves as a strategic location to enhance Eaton’s global competitiveness.”

In India, Eaton employs approximately 850 people in a Professional Services center, 11 sales offices and at one manufacturing location.

Eaton Corporation’s Fluid Power business is a worldwide leader in the design, manufacture and marketing of a comprehensive line of reliable, high-efficiency hydraulic systems and components for use in mobile, industrial and aerospace applications. Mobile and industrial markets include agriculture, construction, mining, forestry, utility, material handling, machine tools, molding and primary metals.

Eaton’s Truck Group is a global leader in the design, manufacture and marketing of powertrain systems and components for commercial vehicles. Around the world, Eaton offers drivetrain components, systems, safety products and service tools, including manual and automated transmissions, hybrid power systems, clutches, collision warning systems with adaptive cruise control, and mobile resource management solutions.

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.

Contact: Shriram Parameswaran
(020) 27443300