Date

September 10, 2008

Eaton’s General Services Administration Contract Renewed for Five Years

PITTSBURGH … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced that its contract with the United States General Services Administration (GSA) has been renewed for an additional five years, with sales anticipated to exceed $100 million.

The GSA is the federal government's primary acquisition agency whose mission is to help other agencies meet their needs for products and services at the best value. In addition, the GSA helps simplify citizen access to government information and services.

“With this contract, federal government agencies now have access to the broadest platform of power quality and electrical products and services,” said Randy Carson, chief executive officer - Eaton’s Electrical Group.

Under the new contract, federal agencies will have access to the comprehensive range of Powerware® uninterruptible power systems, along with Eaton’s full line of distribution switchgear and control products and services. This wide scope of products is complemented by an expanded offering of service capabilities.

“This is a vehicle for federal customers to obtain the products and services they need, when they need them,” Carson noted. The contract eliminates the lengthy spec-bid-buy process and enables any federal agency to quickly and easily obtain and implement the solutions they require. Federal agencies may also work directly with Eaton’s Electrical Group on design-build applications, using the GSA contract as a guide. “We can work together within their budgetary constraints to design and install the solution they desire,” said Carson.

Eaton’s electrical business is a global leader in electrical control, power distribution, uninterruptible power supply and industrial automation products and services. Eaton’s global electrical brands, including Cutler-Hammer®, MGE Office Protection Systems™, Powerware®, Holec®, MEM®, Santak and Moeller, provide customer-driven PowerChain Management® solutions to serve the power system needs of the industrial, institutional, government, utility, commercial, residential, IT, mission critical and OEM markets worldwide.

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 81,000 employees and sells products to customers in more than 150 countries.

This news release contains a forward-looking statement concerning the revenues under the electrical products and services supply contract with the GSA. This statement should be used with caution because it is subject to various risks and uncertainties, some of which are outside the control of the company. Important factors that could cause actual results to differ materially from those indicated by the forward-looking statement include future government funding and unexpected technical difficulties. We do not assume any obligation to update this forward-looking statement.

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Mark Horner
(412) 893-3590


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