Eaton Awarded Two Additional Packages On Embraer's Phenom 100 Very Light Jet.

IRVINE, Calif. -- Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) has been selected by Embraer, a Brazilian aircraft manufacturer, to provide two additional packages for its Phenom 100 very light jet program. The value of the additional contract award is estimated at $45 million, bringing the total value of Eaton's seven Phenom 100 contract awards to approximately $120 million over the life of the program.

The two new packages include the design, development and manufacture of the aircraft's secondary power distribution units and cockpit control panels. The five prior awards included the hydraulic power generation package; the aircraft's flap system and landing gear control hydraulic components; and cockpit controls, consisting of the throttle control quadrant, landing gear control lever and flap selector control lever. Eaton is also pursuing additional packages on the Phenom 100 and Embraer's Phenom 300 light jet development programs.

The range of the Embraer Phenom 100 with four occupants on board will be 1,160 nautical miles using instrument flight rules (IFR) or 1,320 nautical miles using visual flight rules (VFR). It will be designed for a short takeoff distance, operate at a maximum speed of Mach 0.7 and have a certified ceiling height of 41,000 feet.

The Embraer Phenom 300 jet will accommodate up to nine occupants. Its range with six occupants on board will be 1,800 nautical miles using instrument flight rules (IFR). The aircraft is capable of flying at 45,000 feet with a maximum operating speed of Mach 0.78 and is also designed for short field takeoff.

In the aerospace industry, Eaton is a leading supplier of hydraulic and electro-hydraulic pump and generator products and integrated systems; electric motors; aircraft flap and slat systems; fluid conveyance products and systems; nose wheel steering systems; integrated control systems; cockpit controls; power and load management systems; pressure sensors and fluid debris monitoring products and systems. Eaton serves commercial and military aviation, aerospace, military weapons, marine and off-road markets worldwide.

Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 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 60,000 employees and sells products to customers in more than 125 countries. For more information, visit www.eaton.com.

This news release contains forward-looking statements concerning the revenues expected from the Embraer Phenom 100 very light jet program and Phenom 300 light jet. These statements are subject to various risks and uncertainties, some of which are outside Eaton's control. The following factors could cause actual results to differ materially from those forward-looking statements: reductions in customer orders, changes in governmental priorities, unanticipated technological problems or substantial changes in the economic or financial conditions in the United States and Brazil. We do not assume any obligation to update these forward-looking statements.