Date: January 11, 2007

SOUTHFIELD, MICH … Diversified industrial manufacturer Eaton Corporation announced the opening of a new valve actuation operations in Shanghai, China today. The operations are located at Shanghai Eaton Engine Components Company, Ltd. (SEECO) and will produce lash adjusters and roller rocker arm assemblies that will help automotive and engine manufacturers to meet China’s new environmental and fuel economy targets.

“We’re excited about the opportunity to provide finished Type II products in China and the necessary technical and engineering support to help our customers meet the fast-changing needs of the market,” said Joseph P. Palchak, Eaton vice president and president - Engine Air Management Operations, Automotive Group.

Eaton is the world’s leading engine valve manufacturer. It has 25 engine valve and valve actuation facilities worldwide that serve more than 140 automotive and heavy duty engine manufacturers globally. The SEECO facility, where the new operations are located, currently manufactures valvetrain products for Shanghai Volkswagen, Shanghai General Motors, FAW-Volkswagen, Shenyang Aerospace Mitsubishi, Guanzhou Dongfeng Honda, Changan Suzuki, Changan Ford and Jiangling Motors.

This new facility will focus on producing Type II valvetrain products. Type II is the nomenclature description of the valvetrain used with overhead cam engine designs.

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. For more information, visit www.eaton.com.

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