Date: January 11, 2007

SOUTHFIELD, MICH … Diversified industrial manufacturer Eaton Corporation today announced the opening of a new fuel emissions and safety controls production facility in Shanghai, China that will assemble fuel vent valves for automotive customers in Europe and Asia.

“We’re excited about the possibilities this new facility provides,” said Scott L. King, Eaton vice president and president ─ powertrain specialty controls operations, Automotive Group. “We work closely with manufacturers to develop technology-based solutions for their business needs and this expansion along with its dedicated engineering support will help us to better serve our global customers in the region.”

The new facility is located at Shanghai Eaton Engine Components Company, Ltd. (SEECO) which currently manufactures products for Shanghai Volkswagen, Shanghai General Motors, FAW-Volkswagen, Shenyang Aerospace Mitsubishi, Guanzhou Dongfeng Honda, Changan Suzuki, Changan Ford and Jiangling Motors.

Eaton is a leading manufacturer of fuel vapor recovery valves, fuel filler valves and rollover valves designed to keep fuel from escaping a vehicle during fueling and if it rolls during an accident. The new facility in Shanghai will work closely with the Eaton Fuel Vapor System Technical Center in Ann Arbor, Mich., to design, test and manufacture these high-tech products.

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.