MASSA, ITALY … Diversified industrial manufacturer Eaton Corporation today announced a final decision to close its automotive plant in Massa, Italy. The closure is expected to be completed by the end of 2008.

“We realize and regret that this will affect the lives of many people and we are committed to focus on the affected employees and provide all the appropriate support to assist them in this time of need,” said Nanda Kumar, vice president and general manager - Valve Actuation Division. “This decision is in no way is a reflection on the community and the dedicated and hard working people in Massa. We operate in a global business environment that is intensively competitive and cost sensitive and driven by new technology and we cannot make up for the continuing decline in orders at the facility and are forced to make this difficult decision.”

All 350 employees at the facility will receive appropriate severance benefits as agreed by their employee representatives, including outplacement services.

Eaton Corporation is a diversified power management company with 2007 sales of $13 billion. Eaton is a global technology leader in electrical systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has 82,000 employees and sells products to customers in more than 150 countries. For more information, visit www.eaton.com.