Date: January 21, 2008

SOUTHFIELD, Mich. … Diversified industrial manufacturer Eaton Corporation today announced that it has signed a worldwide licensing and technology agreement with Mitsubishi Motors Corporation to manufacture and sell its advanced torque vectoring system. The system is exclusively available to consumers on the legendary all-wheel-drive Mitsubishi Lancer Evolution, which is appearing at the North American International Auto Show in Detroit.

Many of the world’s most popular automotive enthusiast magazines have credited the system’s Super-Active Yaw Control and Super-Active Center Differential technology with making the Lancer Evolution one of the best-handling sports sedans in the world.

“The rally-racing-inspired Lancer Evolution is highly regarded in the sport compact category and will open up new opportunities for us and our customers,” said Joao Faria, Eaton vice president and president – Powertrain and Specialty Controls Operations. ”We’re excited to explore this growth potential.”

“Torque vectoring” is a general term for technology that varies a vehicle’s drive torque not just between front and rear axles but also between wheels on the same axle. The result is vastly improved handling in almost any condition. Super-Active Yaw Control can be built into vehicle axles and limits the difference in torque applied to the left and right wheels, improving cornering. Super-Active Center Differential optimizes front-to-rear torque, achieving balance between traction and steering response.

Eaton is the world's largest independent producer of torque controlling differentials for vehicle manufacturers, the automotive aftermarket and commercial and military vehicle manufacturers. Eaton is leveraging its expertise in vehicle and traction dynamics to continuously expand its product lineup and reach into new and emerging markets.

Eaton Corporation is a diversified industrial manufacturer with 2007 sales of $13 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 64,000 employees and sells products to customers in more than 140 countries. For more information, visit www.eaton.com.