Eaton Selected by Lockheed Martin for F-35 Wing Fluid Distribution Contract Award

    CLEVELAND--Aug. 2, 2002--Diversified industrial manufacturer Eaton Corporation announced today that it has been selected by Lockheed Martin to supply the wing fluid distribution package on the supersonic multi-role fighter, the F-35. The award is for the system design and development (SDD) phase of the program that includes fourteen aircraft over the next two years. At an estimated $200,000 per shipset, this initial contract amounts to $2.8 million. Based on the projected manufacture of 3,000 aircraft for the U.S. military and additional foreign military sales, this award has the potential of generating $1 billion in revenue for Eaton over the life of the program. This contract is Eaton's second major award for the Joint Strike Fighter (JSF) program.
    Alexander M. Cutler, Eaton Chairman and Chief Executive Officer, said, "This second F-35 award for Eaton continues to validate our leadership in the area of high pressure power generation and fluid conveyance systems development. This award, combined with our previously announced contract award for the power generation package on the F-35, represents potentially $2 billion of new aerospace business for Eaton over the life of the program."
    Eaton leads the aerospace industry in the development and fielding of superior high-pressure hydraulic systems that allow airframe manufacturers to reduce component weight and systems volume while increasing overall reliability.
    In the aerospace industry, Eaton is the leading supplier of hydraulic, electro-hydraulic pump and generator products and integrated systems; electric motors; aircraft flap and slat systems; fluid conveyance products and systems; nose wheel steering systems; integrated control systems; cockpit controls; power and load management systems; pressure sensors and fluid debris monitoring products and systems. Eaton's Aerospace business unit serves commercial and military aviation, aerospace, military weapons and marine markets worldwide.
    Eaton Corporation is a global $7.3 billion diversified industrial manufacturer that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and fuel economy; and intelligent truck systems for fuel economy and safety. Eaton has 48,000 employees and sells products in more than 50 countries. For more information, visit www.eaton.com.
    This news release contains forward-looking statements concerning the revenues expected from the F-35 program. These statements are subject to various risks and uncertainties, some of which are outside the company's control. The following factors could cause actual results to differ materially from those forward-looking statements: changes in governmental priorities, unanticipated technological problems or further substantial deterioration of the economic or financial conditions in the United States. We do not assume any obligation to update these forward-looking statements.