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Eaton Corp. (39BU)

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Monday 20 August, 2001

Eaton Corp.

Re Contract

Eaton Corp
20 August 2001

Contact       Renald M. Romain (216) 523-4736 
              Peter Parsons (949) 253-2116


CLEVELAND, OH....Diversified industrial manufacturer Eaton Corporation
(NYSE:ETN) said today its Aerospace business unit has entered into a memorandum
of understanding contract award with Sikorsky Aircraft to provide the fluid
power components for the complete hydraulic system of the U.S. Army's new RAH-66
Comanche helicopter. The engineering and manufacturing development (EMD) phase
contract award represents more than $8 million, and the total program potential
for Eaton exceeds $250 million over the next 25 years.

The RAH-66 Comanche is the world's most advanced helicopter and the cornerstone
of the Army's objective aviation modernization plan. The new helicopter has a
cruising speed of 185 miles per hour, and a dash speed of 197 miles per hour. It
is also highly maneuverable, with the ability to execute snap turns in 4.5
seconds and fly sideways and backwards at up to 70 mph.

The advanced aircraft will incorporate a number of Eaton fluid power components
including two 3000 psi pump reservoir modules, one System III reservoir module,
one heat exchanger, one starter pump and two cartridge vane motors per aircraft.

During the EMD phase from 2001 through 2006, 13 fully equipped aircraft will be
built and flight tested. Full production of the advanced helicopter is scheduled
to begin in 2007 and last through 2025. Current requirements call for more than
1,200 helicopters to be produced for the Army.

In the aerospace industry, Eaton is a leading supplier of hydraulic,
electro-hydraulic pump and generator products and integrated systems; electric
motors; aircraft flap and slat systems; fluid conveyance products and systems;
nose wheel steering systems; integrated control systems; cockpit controls; power
and load management systems; pressure sensors and fluid debris monitoring
products and systems. Eaton's Aerospace business unit serves commercial and
military aviation, aerospace, military weapons, marine and off-road markets

Eaton Corporation is a global $8 billion diversified industrial manufacturer
that is a leader in fluid power systems; electrical power quality, distribution
and control; automotive engine air management and fuel economy; and intelligent
truck systems for fuel economy and safety. Eaton's 54,000 employees work in 29
countries on six continents. For more information, visit

This news release contains a forward-looking statement concerning the potential
for significant future RAH-66 business. That statement should be used with
caution. It is subject to various risks and uncertainties, some of which are
outside the control of the company. Important factors which could cause actual
results to differ materially from those indicated by the forward-looking
statement include continued funding of the program over the 25-year period of
the contract. We do not assume any obligation to update this forward-looking


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