Eaton Reorganizes Cutler-Hammer Business.

Business Editors

CLEVELAND--(BUSINESS WIRE)--Oct. 23, 2000

Eaton Corporation (NYSE:ETN) announced today a new structure for its Cutler-Hammer electrical and electronic products business that will enable it to respond faster to customer requirements with both innovative product solutions and services, effective January 1, 2001.

Eaton will adopt a market segment structure for it's Cutler-Hammer product operations, sales and support organizations to accelerate customer responsiveness.

According to Randy Carson, senior vice president and group executive, Eaton Corporation: "Eaton's Cutler-Hammer business has experienced strong growth in market share and profitability this year. Orders are up 10 percent from last year. Our focus on emerging customer requirements in the specific market segments we serve has been a major factor in our success. We are adjusting our organization now to further accelerate the speed with which we can respond to our customers with the innovative solutions and complete services they expect from us. Our new structure will make us faster and more responsive."

There are three major components to the organizational changes that were announced:

Eaton's fast-growing Cutler-Hammer Engineering Services and Systems (CHESS) will be consolidated with the Cutler-Hammer Global Sales and Customer Service organizations, and will report to Bill VanArsdale, operations vice president. "Aligning sales, service and support in a single organization enables us to provide a total value package for customers," said Carson.

The Cutler-Hammer North America Field Sales organization will be organized into nine regional territories, each with a targeted focus on industrial and electrical construction market segments. Kevin McLean will serve as vice president, North American sales.

Lastly, today's Cutler-Hammer product operations will be organized into six segment-focused business divisions. By aligning sales along segment lines and then combining engineering, manufacturing, marketing, and product line management under specific segment-focused leaders, Cutler-Hammer will be better able to meet targeted growth objectives and customer needs more quickly.

In accordance with these strategic changes, Jerry Whitaker, operations vice president, Power and Control Systems Operations, announced the following appointments:

-- Rich Stinson is appointed vice president and general manager, Power
Distribution Assemblies Division;

-- Jim McGill is appointed vice president and general manager, Industrial
Control Division;

-- Joe Carlin is appointed vice president and general manager, Light Commercial
and Construction Division.

Frank Navratil, operations vice president, Electrical Distribution Products Operations announced the following appointments:

-- Dave Tallman is appointed vice president and general manager,

Residential Products Division;

-- Dan Hartnett is appointed general manager, Power Quality

Division;

-- Mike Bungo is appointed vice president and general manager,

Electrical Components Division.

Eaton Corporation (NYSE:ETN), headquartered in Cleveland, OH, is an $8.4 billion diversified industrial company with 64,000 employees and 200 manufacturing sites in 24 countries. Eaton's Cutler-Hammer business is a leader in electrical power distribution and control equipment and services, supported by a worldwide network of advanced engineering resources. The Internet address for Eaton is http://www.eaton.com.