Eaton Increases Dividend 10 Percent To $.43 Per Share

CLEVELAND--As announced today in the company’s fourth quarter 2006 earnings news release, the Board of Directors of diversified industrial manufacturer Eaton Corporation has declared a first quarter dividend of $.43 per share, representing a 10 percent increase over the previous quarterly dividend of $.39 per share. This is the third dividend increase in the past 13 months.

The dividend is payable on February 23, 2007 to shareholders of record at the close of business on February 5, 2007. Eaton has paid dividends on common shares every year since 1923.

Eaton Corporation is a diversified industrial manufacturer with 2006 sales of $12.4 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 60,000 employees and sells products to customers in more than 125 countries. For more information, visit www.eaton.com.