Governor Granholm Sees How Eaton Takes a Village to Build a Hybrid

KALAMAZOO, Mich.--(Business Wire)--
In visiting the Charleston Township offices of diversified industrial
manufacturer Eaton Corporation today, Michigan Governor Jennifer Granholm saw
how the company has created a village to raise what has now become a family of
commercial hybrid vehicles.

Granholm`s visit to the facility was prompted by news in early August of Eaton`s
significant role in a grant award of $45.4 million from the American
Reinvestment and Recovery Act toward the development of a fleet of almost 400
plug-in hybrid-electric work trucks to be deployed to utility and municipal
fleets across the country. The governor visited with employees on Eaton`s
campus, toured the facility and took a Eaton hybrid powered Ford F-550 utility
bucket truck for a short drive.

The governor saw first-hand the company`s Hybrid Village - an innovation
incubator facility set apart from the rest of Eaton`s campus that was created in
2002 - where the people and elements of a successful business come together to
develop, manufacture and market hybrid power systems for commercial vehicles.
She also learned about Eaton`s other electrical and industrial power management
offerings the company provides cities and states as part of the nation`s
economic stimulus program.

"Michigan is the leader among states in the development of Hybrid commercial
vehicles that will lessen our dependence on foreign oil as well as reduce
greenhouse gas emissions," Granholm said. "We will continue to be a leader in
helping to commercialize the next generation of vehicle technology. By working
with technology leaders like Eaton to attract funding and future customers, we
can spark new economic activity and new jobs that are vital to our future."

"Governor Granholm`s goals toward growing Michigan`s green economy fit perfectly
with Eaton`s sustainability commitment and power management offerings," said
Joseph P. Palchak, president, Eaton`s Vehicle Group. "We appreciate her interest
in our business and we`re working hard to be a positive force toward Michigan`s
economic resurgence."

Last week U.S. Representative Sander Levin visited Eaton`s hybrid innovation
center in Southfield, Mich., and highlighted legislation that will extend the
heavy-duty hybrid tax credit for five years and double the credit amounts. The
proposed legislation would cover between 20 and 50 percent of the incremental
cost of heavy duty hybrid systems, supporting faster commercialization of these
energy-saving technologies. According to the Hybrid Truck Users Forum,
incentives at these levels are expected to increase U.S. heavy and medium duty
hybrid industry sales to 10,000 by 2014, up from today`s industry volume of less
than 2,000.

Eaton Corporation is a diversified power management company with 2008 sales of
$15.4 billion. Eaton is a global technology leader in electrical components and
systems for power quality, distribution and control; hydraulics components,
systems and services for industrial and mobile equipment; aerospace fuel,
hydraulics and pneumatic systems for commercial and military use; and truck and
automotive drivetrain and powertrain systems for performance, fuel economy and
safety. Eaton has approximately 70,000 employees and sells products to customers
in more than 150 countries. For more information, visit www.eaton.com.

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Eaton Corporation
Hybrid Power Systems
Galesburg, MI 49053
Jim Parks, (248) 226-7191
jamesparks@eaton.com

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