Date: September 7, 2007

Eaton Announces Changes In Financial Reporting Structure

CLEVELAND … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) announced today that it will realign its financial reporting structure, increasing the number of business segments reported from four to six, to reflect Eaton’s growth and changing mix of businesses. The change will take effect on January 1, 2008, and will be reflected in the reporting of Eaton’s first quarter 2008 financial results.

The new segmentation will consist of the following:

• The Electrical Group will have two business segments: the Power Distribution segment and the Power Quality segment.

• The Fluid Power Group will have two business segments: the Aerospace segment and the Hydraulics segment, which will also include the results of the Filtration business.

• The Truck and Automotive Groups will continue as individual business segments.

“This realignment of our business segments will reinforce Eaton’s continued global growth and changing mix of businesses,” said Alexander M. Cutler, Eaton chairman and chief executive officer. “We believe this expanded reporting format will allow investors and the public to understand in greater detail the performance of our businesses and will further spotlight our broad geographic and industry balance.”

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.

Contact: Kelly Jasko
(216) 523-5304
kellymjasko@eaton.com