Eaton Secures Locking Differential Contracts from Hyundai, Kia

SOUTHFIELD, Mich.--April 12, 2004--Diversified industrial manufacturer Eaton Corporation today announced details of some major business wins for its locking differential products in the Korean market, amounting to some $150 million of business over the next six years.

The locking differentials will be used on the new Porter truck and Starex models of Hyundai Motors, the Bongo3 Truck of Kia Motors, and on certain future sport utility vehicles of both companies. The introduction dates are phased over the next two years.

Stephen Buente, senior vice president and group executive, Automotive, said: "Eaton has manufactured limited slip differentials in Korea for the local market and for export since 1993. We are delighted that Hyundai and Kia are now adopting our locking differential products, in which Eaton has clear worldwide leadership. Eaton's locking differentials provide outstanding traction control in difficult driving conditions by locking the rear axle if one wheel starts to slip. They are also available on many North American light trucks and sport utility vehicles, and have proved to be a very popular option."

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 diversified industrial manufacturer with 2003 sales of $8.1 billion. Eaton is a global leader in fluid power systems and services for industrial, mobile and aircraft equipment; electrical systems and components for power quality, distribution and control; automotive engine air management systems and powertrain controls for fuel economy; and intelligent drivetrain systems for fuel economy and safety in trucks. Eaton has 51,000 employees and sells products to customers in more than 100 countries. For more information, visit www.eaton.com.