Date: March 27, 2007

U.S. Department Of Commerce Undersecretary Frank Lavin Tours Foton Hybrid City Bus Equipped With Eaton Hybrid Power System During Beijing visit

BEIJING, China … Diversified industrial manufacturer Eaton Corporation said that United States Department of Commerce Undersecretary Frank Lavin received a briefing from Eaton officials and then took a tour of an Eaton-powered hybrid electric city bus on March 28 during his visit today in Beijing.

The hybrid bus is one of the two prototype hybrid city buses jointly developed by Beiqi Foton Motor Corporation and Eaton. The buses are being field tested in major Chinese cities with a goal of winning as many new orders as possible for the clean bus competition for the 2008 Beijing Olympic Games and 2010 Shanghai World Expo.

The two Foton buses employ an Eaton hybrid power system comprised of an Eaton automated transmission system, advanced motor/generator, high-power battery pack and system controller, mated to a Cummins ISBe 5.9L Euro III engine. Eaton utilizes a parallel hybrid system architecture, which maintains conventional mechanical drivetrain architecture, but adds the ability to augment engine torque with electrical horsepower.

The first bus, at 11.4 meters in length and 15,500 kg GVW, was built in January 2006, and went into prototype testing in March. The second bus, at 12 meters and 17,800 kg GVW was built in June 2006 and field tested in August. The two buses have accumulated significant mileage without hybrid powertrain reliability issues.

Official testing conducted by the China National Bus Quality Certification and Testing Center show that the two hybrid buses can reduce fuel consumption by 21 percent and 37 percent respectively compared with equivalent conventional diesel buses over the standard Chinese city bus cycle. The same testing shows reductions in pollution-causing emissions of 21 percent and 37 well.

Eaton formed its Hybrid Business Unit in March 2000, and has emerged as a leader in the development of hybrid power systems for commercial vehicles. Hybrid systems built by Eaton are powering package delivery vehicles being built for FedEx Express and UPS in North America.

Additionally, 24 vehicles in 14 public utility fleets around the U.S. are using Eaton’s hybrid power system. These applications are delivering significant fuel economy gains and pollution reductions, while providing near-silent auxiliary power while working at a job site.

In 2005, Eaton was selected to provide hybrid power systems for two prototype buses to be built by Beijing Bus Branch Company, part of Beiqi Foton Motor Co., Ltd. This project is the first hybrid-powered city bus project for Eaton and the first hybrid power project for Eaton outside North America.

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 59,000 employees and sells products to customers in more than 125 countries.

Beiqi Foton Motor Co., Ltd., established in 1996, has quickly grown into one of China's largest producers in the commercial vehicle industry, and the leading maker of light-duty trucks. Foton's product line includes trucks with payload under 35 tons, light bus, SUV, pickup truck, medium and large buses. With 28,000 employees, Foton produced more than 343,679 vehicles in 2006.

Contact: Don Alles
(269) 342 3311