Eaton Corporation Introduces Its First Commercially Available Hybrid Power System In China With Beiqi Foton Bus Company And Guangzhou Yiqi Bus: (The following news release was also issued by Eaton in China on Jan. 14)

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Diversified industrial manufacturer Eaton Corporation (NYSE: ETN) this month formally introduced its first commercially-available hybrid power system in China with Beiqi Foton Bus Company, deploying the hybrid system in 30 city buses for Guangzhou Yiqi Bus.

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It is our intention to expand the use of hybrid power in our bus fleet to take greater advantage of this reliable clean energy source.

    Eaton is a leading provider of diesel-electric hybrid power systems in the United States for truck and bus applications and is also pioneering hydraulic hybrid power systems technologies for use in refuse trucks, delivery vehicles, buses and other applications.

Beiqi Foton Bus Company and Eaton delivered the 30 hybrid diesel-electric transit buses to Guangzhou Yiqi Bus on January 11 during a ceremony hosted by the U.S. Department of Commerce as part of its Clean Energy Trade Mission to China and India. The 30 buses will be deployed to carry passengers in the city, with an expected fuel savings of up to 27 percent, along with similar reductions in particulate and nitrogen oxide (NOx) emissions.

"We are pleased to provide Eaton's hybrid power system technology in working with Beiqi Foton to meet the needs of Guangzhou Yiqi Bus," said James W. McGill, Eaton vice president - Asia/Pacific. "Innovative Eaton technologies such as our hybrid power systems are generating improved fuel economy and significant environmental benefits. We look forward to supplying more of these systems to serve the growing Chinese market."

Kevin Beaty, leader of the hybrid power business unit in Eaton's Truck Group, said delivery of the 30 hybrid powered buses is "a significant milestone for Eaton in placement of hybrid power in China. Vehicle makers, fleets and users in China are working hard to reduce pollution and greenhouse gases in their cities, and we are excited about being involved," Beaty said. "This is one of those opportunities where 'growth' and 'green' can succeed together."

Guangzhou Yiqi operates approximately half of the transit buses in Guangzhou, a city of 12 million people in China's Guangdong province. Beiqi Foton Bus, one of China's leading commercial vehicle makers, first brought Eaton's hybrid power system to China in two prototype buses that were developed and deployed for testing in 2006.

"Guangzhou Yiqi Bus is making great strides to save energy and reduce greenhouse gases and emissions. We are very excited to cooperate with Beiqi Foton and Eaton Corporation to introduce hybrid power technology to Guangzhou city," said Cheung Wai Hung, chairman of Guangzhou Yiqi. "It is our intention to expand the use of hybrid power in our bus fleet to take greater advantage of this reliable clean energy source."

Wang Jin Yu, president of Beiqi Foton Bus, said, "Beiqi Foton is actively following government policies and regulations to reduce greenhouse gases and emissions. Beiqi Foton is cooperating with Eaton Corporation and Guangzhou Yiqi Bus to promote Hybrid technology in city buses and plans more extensive development in this area. Beiqi Foton also hopes that all industries and society will work together to build a greener and more environmentally friendly society in the future."

"U.S. clean-energy companies can help China and India meet their enormous energy demands while deploying technology that benefits the environment," said David Bohigian, Assistant Secretary, U.S. Department of Commerce, commenting on the 18 U.S. companies, including Eaton, participating in the trade mission.

Among a wide range of Eaton products that enable customers to grow efficiently and responsibly, Eaton hybrid power systems have earned the company recognition as a global leader in alternative power for commercial vehicles. Eaton is developing both hybrid electric and hybrid hydraulic technologies for a variety of commercial vehicle applications. Both hybrid technologies use dual power sources to capture and store regenerative energy, as well as providing traction power to reduce fuel consumption and exhaust emissions. Eaton's hybrid electric technology is being used in the United States by companies such as FedEx, UPS, Coca-Cola and Pepsi Cola, and in Europe by DAF Trucks and Daimler Trucks. Eaton plans to commercialize its parallel hybrid hydraulic technology, called the Eaton HLA(R) system, in 2008 in refuse trucks, and other applications will follow. Eaton is also working with the U.S. EPA and other partners to develop a series hybrid hydraulic drivetrain that has demonstrated 50-70% better fuel economy in a package delivery vehicle.

Eaton Corporation is a diversified industrial manufacturer with 2006 sales of $12.4 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 63,000 employees and sells products to customers in more than 140 countries. For more information, visit http://www.eaton.com.

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