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Eaton Determines Ratio for Distribution of Axcelis Shares

11 December 2000

Eaton Determines Ratio for Distribution of Axcelis Shares

    CLEVELAND--Dec. 8, 2000--Eaton Corporation today said it has determined the ratio for the distribution of shares in Axcelis Technologies, Inc. , scheduled for 5 p.m. EST, December 29, 2000.
    The distribution will be 1.179023 shares of Axcelis for each outstanding share of Eaton common stock. For purposes of calculating the distribution ratio, Eaton had 67,847,807 shares outstanding as of the record date, December 6, 2000.
    In October, the Eaton board of directors declared a stock dividend of all of the company's Axcelis common stock to Eaton shareholders of record as of 5 p.m. EST on December 6, 2000. The distribution, which will complete the spin-off of Axcelis from Eaton, will give Eaton shareholders approximately 82 percent of the outstanding Axcelis common shares.
    In addition to receiving whole shares of Axcelis, Eaton shareholders will receive cash payments for fractional shares. Eaton had previously announced that it had received a ruling from the Internal Revenue Service that this stock distribution to shareholders qualifies as tax-free for U. S. federal income tax purposes. Cash received in lieu of fractional shares will be taxable.