Date: June 22, 2006

KALAMAZOO, MI. - Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced it is working on an innovative technology that could enable it to enter the diesel exhaust aftertreatment business. This technology utilizes a unique combination of exhaust-cleansing technologies that tests indicate will be more efficient and cost-effective than many competing systems.

Having proven the functionality and benefits of its system in development and testing over the last three years, Eaton has now installed a prototype system for testing in a Heavy Duty U.S. Truck.

Vishal Singh, marketing and business development manager for new technologies at Eaton’s Truck business unit, announced that Eaton’s aftertreatment system will be ready to meet the most strict diesel emissions requirements in the world – the 2010 U.S. Environmental Protection Agency (EPA) emissions requirements – with a unique combination of Fuel Reformer Catalyst with doser, Selective Catalytic Reduction Catalyst (SCR) and Lean NOx Trap (LNT) developed over the last few years at the Eaton Innovation Center in Southfield, MI.

“This is not a ‘me too’ technology”, said Singh, as he explained Eaton’s approach. “We have proposed a novel aftertreatment system that combines a fuel dosing unit, fuel reformer catalyst, a LNT catalyst, and a SCR catalyst in series to scrub NOx from the system. While most SCR systems being proposed today use urea as a means of carrying the ammonia needed to catalyze the NOx, Eaton’s system generates its own on-board ammonia. The result is a cost-effective system that meets EPA requirements and eliminates the need for urea distribution and infrastructure or on-board urea tanks.”

The fuel reformer generates an optimal mixture of reformate gases to improve LNT regeneration efficiency. During “lean” exhaust conditions, the LNT stores NOx. During rich exhaust conditions (LNT regeneration), the LNT converts stored NOx to nitrogen and produces ammonia. This ammonia is stored by the downstream SCR catalyst and is used to convert remaining NOx that slips past the LNT. NOx reduction takes place in two stages once by the LNT and second time by the SCR catalyst

“Essentially, Eaton has taken two NOx-reducing technologies, packaged them in a system that allows them to work together, and taken advantage of a naturally occurring chemical reaction to eliminate a major cost and logistics hurdle that exists for urea-based systems”, continued Singh.

Singh stressed that much work remains to be done in the next three and a half years to bring this technology to market in time to meet EPA 2010 emissions regulations. Eaton is presenting its system design at the Euro 5&6 Conference in Amsterdam, Netherlands on June 28, and at the 2006 Diesel Engine-Efficiency and Emissions Research (DEER) Conference on August 20-24, 2006, in Detroit, MICH. (The DEER Conference has been the U.S. Department of Energy's (DOE) primary mechanism for the public exchange of state-of-the-art clean diesel research and development.) Eaton’s new aftertreatment system will be on display at the IAA Nutzfahrzeugue exposition in Hanover, Germany, September 21-28. Eaton will also present papers, presentation and display at the SAE Commercial Vehicle Engineering Congress & Exhibition, October 31 – November 1 in Chicago, ILL. In the meantime, Eaton continues to work with global engine manufacturers and truck makers to identify opportunities for aftertreatment modeling, installation and testing. More extensive vehicle testing will begin in the third quarter of 2006.

“We don’t invest this high level of resources into a brand-new technology unless we think we truly have a powerful value proposition for our customer”, continued Singh, “and we don’t enter into any new technology area unless we can demonstrate to our leadership, our stockholders and our customers that we intend to be a leader in that area. That’s our goal, and we’re confident in our approach, our value and our expected outcomes.”

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.