Date: July 9, 2007

Eaton Awarded Hydraulic Power Generation System

On Embraer’s Phenom 300 Light Jet

IRVINE, Calif. … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) has been selected by Brazilian aircraft manufacturer Embraer to provide the hydraulic power generation system for its Phenom 300 light jet program. The value of the award is estimated at $20 million over the ten-year life of the program.

The award includes the design, development and manufacture of the aircraft’s hydraulic power generation system.

The Phenom 300 jet will accommodate up to nine occupants. Its range with six occupants will be 1,800 nautical miles (3,334 km or 2,071miles) with NBAA IFR reserves, 35 minutes and 100 nm alternate. The aircraft is capable of flying at 45,000 feet at a maximum operating speed of Mach 0.78 and is also designed for short field takeoffs.

In the aerospace industry, Eaton is a leading supplier of hydraulic, electro-hydraulic pump and generator products and integrated systems; fuel systems; electric motors; aircraft flap and slat systems; fluid conveyance products and systems; nose wheel steering systems; integrated control systems; cockpit controls; power and load management systems; pressure sensors and fluid debris monitoring products and systems. Eaton serves commercial and military aviation, aerospace, military weapons, marine and off-road markets worldwide.

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 62,000 employees and sells products to customers in more than 125 countries.

This news release contains forward-looking statements concerning the revenues expected from the Embraer Phenom 300 light jet program. These statements are subject to various risks and uncertainties, some of which are outside the company’s control. The following factors could cause actual results to differ materially from those forward-looking statements: reductions in customer orders, changes in governmental priorities, unanticipated technological problems or substantial changes in the economic or financial conditions in the United States and Brazil. We do not assume any obligation to update these forward-looking statements.

Contact: Peter Parsons
(949) 253-2116
peterparsons@eaton.com