Arbitrator Awards $8.5 Million to Western Filters

    CLEVELAND--June 26, 2001--On Friday, June 22, an arbitrator awarded $8.5 million to Western Filters Incorporated in a contractual dispute over supply arrangements with a subsidiary of diversified industrial manufacturer Eaton Corporation .
    The arbitration concluded a federal court action brought in February 1999 against Vickers Incorporated, part of Aeroquip-Vickers Inc., which Eaton acquired in April 1999.
    From an accounting standpoint, the award will be treated as a nonrecurring extraordinary item and will not be included in operating earnings. It therefore has no relevance to the separate news release issued today by Eaton Corporation regarding its financial outlook for the second quarter and full-year, 2001, and is not expected to have any future impact on the company's business.