Eaton Corporation Acquires Integrated Partial Discharge Diagnostics, Inc.

CLEVELAND--(BUSINESS WIRE)--July 28, 1998--Eaton Corporation today said it has acquired Minnetonka, Minnesota-based Integrated Partial Discharge Diagnostics, Inc. (IPDD), a technology company involved with the development, manufacture and application of partial discharge technologies related to the electrical equipment industry, for an undisclosed amount. IPDD had 1997 sales of $1.3 million.

IPDD uses partial discharge measurement and analysis technology for on-line diagnostics testing which enables the accurate measurement of insulation deterioration within AC power equipment. This measurement, in turn, allows companies to more accurately predict insulation failure in such electrical equipment as transformers, cables, generators, motors, switchgear, and medium voltage power breakers.

IPDD will become part of Eaton's Cutler-Hammer Engineering Services and Systems business, a support business unit formed seven months ago to deliver state-of-the-art global support to electrical system and industrial automation users.

"IPDD products and people are an excellent synergistic fit with Cutler-Hammer," said David M. Wathen, Senior Vice President-Cutler-Hammer. "Together, we will be able to develop and deliver new technologies and products to serve and support our industrial, institutional and utility customers better, predicting problems before they occur.

"Electrical equipment worldwide is aging," Wathen said, "Much of it is more than 25 years old. Deteriorating insulation is a major problem that causes equipment failure and plant downtime. In combination with Cutler-Hammer's existing capabilities, the technology developed by IPDD will help our customers monitor insulation quality, locate weaknesses, predict timing of potential failures and extend the life of installed electrical equipment."

Zalya Berler, formerly president of IPDD, Inc., has been appointed general manager of the new subsidiary. IPDD will remain in Minnetonka, co-locating with an existing Engineering Services and Systems operation.

Cutler-Hammer, a business unit of Eaton Corporation, had 1997 sales approaching $2 billion. It is a world leader in the development and manufacture of industrial controls and power distribution equipment and advanced industrial automation solutions.

Eaton Corporation is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial and semiconductor markets. Principal products include electrical power distribution and control equipment, truck transmissions and axles, engine components, hydraulic products, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 49,000 employees and 150 manufacturing sites in 25 countries around the world. Sales for 1997 were $7.6 billion.

CONTACT: Eaton Corporation

Renald M. Romain, 216/523-4736

http://www.eaton.com