The following news release was issued by Eaton in China.

GUANGZHOU … Diversified industrial manufacturer Eaton Corporation announced today that it has signed a memorandum of understanding with South China University of Technology (SCUT) to sponsor its research programs as well as foster Eaton’s technology advancement.

Eaton will collaborate with SCUT on the research and development of mechanical, electrical and, most importantly, transportation engineering, which focuses on Eaton’s industry-leading hybrid power systems for commercial vehicles.

“We are very pleased to work with SCUT in these critical areas of innovation. With the combination of Eaton’s industry-leading experience and the invaluable expertise of this top university, we are confident that this collaboration will yield the technological breakthroughs that will benefit China and Eaton customers around the world,” said Yannis P. Tsavalas, senior vice president and chief technology officer of Eaton.

As part of the new partnership, Eaton, SCUT and Guangzhou Yiqi Bus Company have launched a joint research program on oil consumption and emission test of hybrid buses on the road of Guangzhou. Eaton formally introduced its first commercially available electric hybrid power system in China earlier this year with Guangzhou Yiqi Bus. The delivery of nearly 240 city buses will be the largest placement of hybrid powered buses in China once deployed.

Under the research agreement, SCUT will take major responsibility for performance testing of Eaton’s hybrid power system to improve its capability. Eaton will provide funding for the research and technical assistance for maintenance of the hybrid system, while Guangzhou Yiqi will provide buses, drivers and maintenance technical staff for the research project.

The new agreement with SCUT adds a new dimension to Eaton’s portfolio of ongoing academic cooperation announced during 2007 with Zhejiang University, Huazhong University of Science and Technology, and Xi’an Jiaotong University, as well as two new partnerships with Shanghai Jiaotong University and Harbin Institute of Technology announced recently.

Yannis said: “Eaton is not only committed to expanding our research and development initiatives locally, but also, by way of our academic funding and knowledge sharing partnerships, we hope to improve the research and development capabilities of the partners and improve local education as well.”

Among a wide range of Eaton products that enable customers to grow efficiently and responsibly, Eaton hybrid power systems have earned the company recognition as a global leader in alternative power for commercial vehicles. In fact, Eaton is the only hybrid system developer that has both hybrid electric and hybrid hydraulic systems for commercial vehicles in real world use since 2000. Eaton’s hybrid power technology decreases emissions dramatically by up to 90% and fuel consumption by over 40%. Other Eaton technologies that help customers conserve energy and manage power include advanced lighting control systems for commercial buildings, uninterruptible electrical power systems for data centers, high-pressure hydraulics for the aerospace industry, and fuel-efficient automotive superchargers.

Eaton Corporation is a diversified industrial manufacturer with 2007 sales of $13.0 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; hydraulics, fuel and pneumatic systems for commercial and military aircraft; 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 79,000 employees and sells products to customers in more than 150 countries.

Contacts:

Vivian Xiao – China (8621) 6387 9988 ext. 634

Hilary Spittle – U.S. (216) 523-5352

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