Date

June 12, 2008

Green Products Earn Eaton Key Sustainability Award in China

The following news release was issued by Eaton in China.

SHANGHAI … Diversified industrial manufacturer Eaton Corporation today announced that it has been honored by China WTO Tribune magazine for its achievements in providing sustainable products and services in China.

The national publication launched the '”Golden Bee CSR China Roll' sustainability awards program to recognize and reward those domestic and foreign businesses at the forefront of sustainability best practices in China. The evaluation process has been supported by international organizations including AccountAbility, Sino-German CSR Project, CSR Europe and Society for Human Resources Management in the U.S.

A total of 60 companies, including Eaton, Sony, Novartis, Pepsi, Lenovo and Haier, were listed in the '”Golden Bee CSR China Roll' for their strong leadership in corporate sustainability. In addition, Eaton was honored with a special “Sustainable Product & Service Award” for its efforts to deliver products and services that are energy efficient and environmentally responsive.

“We’re honored that Eaton’s sustainability and corporate responsibility leadership has been recognized in China,” said James W. McGill, Eaton president ─ Asia/Pacific. “Sustainability is at the heart of Eaton’s practices and products. We help our customers use electrical, fluid and mechanical power more efficiently and responsibly. In China, we are helping to create a cleaner, safer environment with our green products such as our hybrid power systems now in use in transit buses in the city of Guangzhou. “

Last month, Eaton, together with Guangzhou Armada Development Corporation and Guangzhou Yiqi Bus, announced that 207 Eaton diesel-electric hybrid power systems will be installed in new buses in Guangzhou. This purchase adds to the initial installation of 30 Eaton hybrid-powered buses announced in January. Once deployed, this will be the largest single placement of hybrid-powered buses anywhere in China.

McGill noted that Eaton’s businesses – Electrical, Aerospace, Hydraulics, Truck and Automotive – are all developing products and processes that protect the environment, conserve energy, reduce emissions and manage resources.

China WTO Tribune commented on the award for Eaton: “All of Eaton’s business groups are developing products which help the environment. For example, Eaton's solution reduced the volume and size of the Airbus 380 entire hydraulic system and slimmed down the aircraft by a full metric ton, saving fuel and reducing emissions. Up to 10 Eaton UPS systems in a data center can help save RMB1.4 million each year, providing 20% more power for additional computing and reducing CO2 emission by 1.8 tons. The bus equipped with Eaton's hybrid power system can save RMB90,000 per year in fuel cost and significantly reduce emission.”

Many other Eaton products protect the environment as well. Eaton’s MV switchgear designs use environmentally friendly choices for insulation, avoiding sulfur hexafluoride (SF6), an extremely harmful greenhouse gas, 20,000 times more potent than carbon dioxide (CO2). Eaton’s hydraulic systems help keep wind turbine turning – and generating clean, renewable energy – in the harshest environments. Both products have already been supplied to the Chinese customers.

The awards were announced at the third Golden Bee International CSR Forum in Beijing, which saw domestic and international CSR experts come together to discuss new CSR development trends in China and abroad. McGill spoke at the forum on the topic of sustainable growth.

China WTO Tribune magazine and partners such as AccountAbility, an international professional institute in CSR research and benchmarking, reviewed 200 companies by questionnaire and 187 case studies, and evaluated them in different categories to select the “Golden Bee Honor Roll. ”.

China WTO Tribune magazine reports on the integration of the Chinese economy into the global economy after China’s accession into the WTO. Supported by the Ministry of Commerce, the magazine founded the Chinese corporate social responsibility development center and has organized a series of CSR seminars and research studies to promote best practices in corporate sustainability in China.

Eaton began operations in China in 1993 through a joint venture agreement to manufacture steering control units and hydraulic motors. Since then, its presence has grown significantly in the region through acquisitions, joint ventures and wholly-owned subsidiaries. In China today, Eaton has 27 operations with more than 11,000 employees.

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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