Eaton Receives $2.15 Million Contract to Accelerate Development of its Energy-Saving Hydraulic Launch Assist Technology

WARREN, Mich.--April 11, 2005--Diversified industrial manufacturer Eaton Corporation announced today it received a $2.15 million contract from IMPACT Engineering Inc. to accelerate commercial development of Eaton's breakthrough Hydraulic Launch Assist(TM) system technology for a program with the U.S. Army's National Automotive Center.

The program, known as HAMMER (Hydraulic Hybrid, Advanced Materials, & Multi-fuel Engine Research), was established to help reduce fuel consumption in military ground vehicles, and is being funded by the U.S. Department of Defense. The funding will run through 2005, during which time a Class 3 demonstration vehicle will be developed for testing and use on U.S. Army bases.

Eaton's energy-saving HLA(R) regenerative braking system has demonstrated significant benefits in fuel economy, emissions and brake wear in start-and-stop vehicle applications. Eaton's contract work will focus on designing the third generation HLA system and optimizing the benefits of the HLA technology to the specific vehicle application that the U.S. Army will ultimately evaluate. IMPACT Engineering is leading the program management and is the prime contractor.

Other key partners involved in this program include: Ford Motor Company, responsible for the design and manufacture of the vehicle; MKP Engineering, responsible for structural analysis; and the University of Toledo, responsible for hydraulics research.

"Eaton's HLA system is representative of the company's commitment to leading-edge technologies that benefit both customers and the environment," said Steven Nash, director of new business ventures for Eaton's Fluid Power group. "We are proud to partner with the Army's National Automotive Center (NAC), which continues its strong commitment to support the development of environmentally-friendly technologies that can create significant benefits in both commercial and military applications. This project represents an important step forward in commercializing this exciting new technology, and we applaud the NAC for helping drive it."

Dennis Wend, executive director for the NAC, said: "The Army has a big interest in fuel-efficient and cost-effective hybrids for both military and commercial applications to reduce fuel transport costs on the battlefield. We are pleased to partner with industry and academia to develop this technology for government as well as commercial benefit."

Eaton's HLA system works by recovering a portion of the energy normally wasted as heat by the vehicle's brakes. This recovered energy is held in the form of pressurized gas in an on-board accumulator until the driver next accelerates the vehicle. The technology is particularly beneficial for commercial and military vehicles with daily routines that include mostly start-and-stop driving.

Fuel savings occur when the stored energy is then used to assist the engine during the initial, high-fuel consumption acceleration of the vehicle. Acceleration can be significantly improved due to the high power density of hydraulics, and the energy transfer is virtually transparent to the driver. Even at low speeds, the HLA system can provide high torque very quickly.

Eaton Corporation is a diversified industrial manufacturer with 2004 sales of $9.8 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 56,000 employees and sells products to customers in more than 125 countries. For more information, visit www.eaton.com.