ETN Eaton Corp New

As announced in today's second quarter 2006 earnings news release, the Board of Directors of diversified industrial manufacturer Eaton Corporation (NYSE:ETN) has declared a third quarter dividend of $.39 per share, representing an 11 percent increase over the previous quarterly dividend of $.35 per share. The dividend is payable on August 25, 2006 to shareholders of record at the close of business on August 7, 2006. Eaton has paid dividends on common shares every year since 1923. In January of this year, Eaton announced a first quarter dividend increase of 13 percent from $.31 to $.35 per share. Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 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.