Eaton Announces Licensing Agreement with Lotus Engineering

    SOUTHFIELD, Mich.--July 11, 2003--Diversified industrial manufacturer Eaton Corporation today announced that it has signed a licensing agreement with Lotus Engineering to develop the British company's 'Active Valve Train' (AVT(TM)) system for production.
    Lotus' excellence in powertrain research and development is being combined with Eaton's leadership in producing and selling valvetrain technologies to vehicle producers around the world. The companies will collaborate closely in the development of Lotus' current AVT(TM) research system to meet the cost, packaging and performance demands of a production system.
    An undisclosed major European vehicle producer has already signed an agreement to acquire the AVT(TM) system for one of its platforms. Eaton and Lotus note that the system has great potential across a wide range of light and heavy-duty automotive sectors. The companies hope to have vehicles demonstrating Lotus AVT(TM) technology within two years and to have systems in production and available for delivery by 2008.
    "Eaton's Automotive segment produces products focused on fuel economy, the environment, and targeted safety systems. Our collaboration with Lotus means we can get to market quickly with one of the most exciting developments in valvetrain technology for many years," said Stephen Buente, Eaton senior vice president and group executive -- Automotive. "Between Lotus and Eaton there is the right mix of experience and know-how to make the AVT(TM) system a world-leading technology that is attractive to vehicle producers the world over."

    Eaton, the world's largest producer of superchargers and engine valves, is a leading provider of automotive engine air management and fuel economy systems. Eaton's automotive business also supplies market-leading locking differentials, mirror controls, and transmission control modules for improved performance and fuel economy. For more information about Eaton's automotive products and businesses, visit www.automotive.eaton.com.
    Eaton Corporation is a global diversified industrial manufacturer with 2002 sales of $7.2 billion that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and fuel economy; and intelligent systems for fuel economy and safety in trucks. Eaton has 51,000 employees and sells products in more than 50 countries. For more information, visit www.eaton.com.