Eaton to Supply Hybrid Power Systems for Beiqi Foton Motor Co. Buses

BEIJING, China--March 20, 2006--Diversified industrial manufacturer Eaton Corporation has been selected to provide hybrid power systems for two prototype buses to be built by Beiqi Foton AUV Bus Company. The buses will be field tested in major Chinese cities, including Shanghai and Beijing, in 2006. Beiqi Foton said its goal is to win as many new orders as possible for the clean bus competition for the 2008 Beijing Olympic Games and 2010 Shanghai World Expo.

"China plans to utilize world-class technologies to help reduce pollution and improve fuel efficiency for the nation's vehicle fleet, and we're eager to help them," said Ken Davis, Eaton vice president and president - Light and Medium Duty Transmission Division. "Foton is working hard to prove these technologies and win the clean bus competition, and we are proud to work with them in this effort. Eaton is a company committed to growth through breakthrough technologies, and this project exemplifies the innovation that customers have come to expect from us."

The two Foton buses will employ an Eaton hybrid power system comprised of an Eaton automated transmission system, advanced motor/generator, high-power battery pack and system controller, mated to a Cummins ISBe 5.9L Euro III engine. Eaton utilizes a parallel hybrid system architecture, which maintains conventional mechanical drivetrain architecture but adds the ability to augment engine torque with electrical horsepower.

"Foton's AUV HEV bus is a prominent achievement and represents Foton's strong research ability, integration of global resources, and a strategy combining self-innovation and international cooperation," said Mr. Fan Wentang, assistant president of Beiqi Foton Motor and general manger of Beiqi Foton AUV Bus Company. "The drivability, reliability and lower operation cost of AUV bus will be the biggest highlights to attract the bus fleet customers."

The first bus, at 11.4 meters in length and 15,500 kg GVW, was built in January 2006, and went into prototype testing in March. It has accumulated about 3,700 kilometers with no hybrid powertrain reliability issues. It will soon be placed into field testing, and is currently being showcased in a city bus demonstration event in Beijing, March 18-20. The second bus, at 12 meters and 17,800 kg GVW, will be built in May and field tested in August 2006.

Eaton formed its Hybrid Power Systems business unit in March 2000, and has emerged as a leader in the development of hybrid power systems for commercial vehicles. Hybrid systems built by Eaton are powering package delivery vehicles being built for FedEx Express and UPS in North America. Additionally, 24 vehicles in 14 public utility fleets around the U.S. will begin using Eaton's hybrid electric system in 2006. These applications are delivering significant fuel economy gains and pollution reductions. The Beiqi Foton project is the first hybrid-powered city bus project for Eaton and the first hybrid power project for Eaton outside North America.

Beiqi Foton Motor Co., Ltd., established in 1996, has quickly grown into one of China's largest producers in the commercial vehicle industry, and the leading maker of light-duty trucks. Foton's product line includes trucks with payload under 35 tons, light bus, SUV, pickup truck, medium and large buses. With 28,000 employees, Foton produced more than 310,000 vehicles in 2005.

Eaton is establishing a major presence in China and plans to increase annual sales in its Asia/Pacific region to $2.5 billion by 2010. The company has 14 manufacturing plants, three light assembly and distribution facilities, 21 sales offices and more than 3,500 employees in China.

Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 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 59,000 employees and sells products to customers in more than 125 countries. For more information, visit www.eaton.com.