International Trade Commission Judge Rules That ZF and ArvinMeritor Transmissions Infringe Eaton Patent

CLEVELAND--Jan. 7, 2005--Diversified industrial manufacturer Eaton Corporation has been informed that a U.S. International Trade Commission (ITC) judge today issued a decision in Eaton's favor in an unfair import proceeding brought by Eaton against ZF Friedrichshafen AG (ZF), Arvin Meritor, Inc. and ZFMeritor LLC (ZFM). The judge determined that automated truck transmissions manufactured and marketed by ZF, ArvinMeritor and ZFM infringe an Eaton transmission patent and are therefore being unlawfully imported into the United States. As a result, the judge has recommended that the ITC issue both an order prohibiting future importation of ZF FreedomLine transmission systems and components into the United States and a cease-and-desist order halting the sale of these products in the United States.

"We are pleased with the judge's decision, " said James E. Sweetnam, senior vice president and group executive of Eaton's truck business. "Eaton is committed to developing industry-leading technologies for our customers. In order to protect our investments, we will continue to vigorously defend our patents against infringement by any other companies, as we have done in this case."

Eaton filed a complaint with the ITC in December, 2003 claiming that ZF, ArvinMeritor and ZFM are infringing Eaton automated transmission patents through importation of ZF automated transmissions and components.

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, powertrain solutions and specialty controls for performance, fuel economy and safety; and intelligent truck drivetrain systems for safety and fuel economy. Eaton has 55,000 employees and sells products to customers in more than 100 countries. For more information, visit www.eaton.com.