Eaton and Hitachi Sign Vehicle Collision Warning Systems Technology Agreement.

CLEVELAND--(BUSINESS WIRE)--Dec. 7, 1998--Eaton Corporation (NYSE:ETN) today said that its Eaton VORAD subsidiary has signed an agreement with Hitachi, Ltd. of Tokyo to speed development of electronics technology and increase the geographic marketing of vehicle collision warning systems.

Eaton VORAD currently sells the only commercially available collision warning system to the U. S. heavy truck market.

Under terms of the agreement, the two companies will jointly develop micro-electronics for a next-generation automotive adaptive cruise control system that is expected to increase performance, reduce weight and lower product costs.

"This agreement has the potential to permit a significant leap forward in the development of collision warning systems for trucks and automobiles," said Christopher L. Royan, President of Eaton VORAD. "The combination of Eaton VORAD's proven over the road system, combined with Hitachi's ongoing development of radar-based micro-electronics, will speed the day when we see some form of collision warning system on the family car."

Hitachi has taken major strides in the development of milliwave radar systems for intelligent transportation systems, including development of electronic micro chips to operate those systems, according to Royan.

Eaton VORAD, an operating subsidiary of Eaton Corporation, is a world leader in the development of radar-based collision warning systems and adaptive cruise control systems for vehicles. In 1994 the company introduced the first commercially available product for the U.S. heavy truck market. Since that time the company has sold more than 10,000 systems that have amassed more than 600 million miles of road service.

Because of the extended over the road experience, Eaton VORAD has been able to study the safety effects of collision warning systems, and the results have been dramatic, according to Royan. "A recently completed study of Eaton VORAD-equipped heavy trucks that had accumulated more than 190 million miles of service disclosed that accidents were reduced from 1.2 per million miles to 0.3, and accident rates for individual truck fleets were reduced by as much as 73 percent. We believe the potential exists to show similarly dramatic reductions in accidents involving passenger cars," Royan said.

The Eaton VORAD system utilizes on-board radar to alert drivers to hazards that cause accidents, such as stopped or slow-moving vehicles ahead, following too closely, and vehicles positioned in a driver's "blind spot". The system can "see" through fog, dust, rain or snow.

In June, 1998, the company began production of a monopulse radar system with adaptive cruise control for medium- and heavy-duty trucks. The new radar system can track up to 20 vehicles at one time, even those traveling in adjacent lanes. It is also capable of tracking vehicles around curves, and with enhanced side sensors can detect vehicles in the driver's "blind spot". The cruise control feature automatically slows down or speeds up the vehicle, based on traffic conditions.

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 drivetrain systems, engine components, hydraulic products, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 51,000 employees and 155 manufacturing sites in 25 countries around the world. Sales for 1997 were $7.6 billion. The Internet address for Eaton is: http://www.eaton.com/.