Company Information

Moving and Improving.........October 2006

RE: Andrew Carrothers appointed as LVCA Plant Manager, Brian Palmeter appointed PDS Manager, Eaton Electrical, Canadian Operations

I am very pleased to announce the following organizational changes:

Andrew Carrothers has been appointed to the position of Low Voltage Control Assemblies Plant Manager, Airdrie/Calgary, AB within the Canadian Operations of PCSO.

Andrew has successfully completed several progressive assignments within Eaton Electrical, Canadian Operations, including Industrial / OEM Marketing Manager. Most recently, he led the creation and implementation of the Consolidated Transaction Center (CTC organization).

In addition to his plant management responsibilities, Andrew's vast marketing experience will help us accelerate our Alberta Oil and Gas growth initiative.

Andrew holds a Bachelor of Science in Electrical Engineering and a Masters of Business Administration in Finance. He is a registered Professional Engineer in Ontario and Alberta. Andrew will be located in the Calgary / Airdrie area.

Brian Palmeter has been appointed Product Delivery System Manager for Eaton Electrical, Canadian Operations. In this capacity, Brian will be responsible for the Consolidated Transaction Center organization. In addition to the CTC, Brian will utilize his operations / lean experience to drive process improvements throughout the entire product delivery system, with specific focus on the linkages between sales, CTC and manufacturing.

Brian has recently completed a successful assignment as Plant Manager in the Airdrie facility. Previously, he has held several leadership positions within operations as well as assignments in marketing and supply chain. He will relocate to the Burlington area.

These changes will improve our collaborative efforts by injecting a plant perspective into the CTC organization and a CTC perspective into the plant environment. Collaboration is critical to our product delivery system performance and will help maintain our focus on being the most admired company in our markets.

These organizational changes are effective October 1, 2006. Andrew and Brian will continue to report to me.

Please join me in congratulating Andrew and Brian on their new assignments.

Steve Boccadoro
General Manager
Eaton Electrical, Canadian Operations




RE: Industrial Marketing Reorganization

In order to effectively implement our strategy focused on growing control sales in the Machinery OEM and Project Construction market segments, we are announcing the following reorganization of the Industrial Marketing Team. Lorne Gould, Product Manager, will have responsibility for the Power Control, Logic and Sensor product lines. Lorne and his team are focused on growing sales of both open and enclosed , NEMA or IEC products in the OEM and Project Construction market.

Reporting to Lorne are:

• Vlad Gagachev - Power Control Product Specialist
• Mario Javier - In a new role for Mario, he will be responsible for the Logic and Sensor products reporting to Lorne.
• Denis Poirier - Enclosed Control Team Leader
• Eric Posma - Enclosed Control Product Specialist

Doug Young, Product Manager will be responsible for Adjustable Frequency Drives including the micro, standard and enclosed products.

Reporting to Doug is:

Jeff Estey - In a new role for Jeff, he will be supporting the VFD product line as a product specialist reporting to Doug.

Eric Tate, Technology Application Engineer (T.A.E.) Team Leader, will be responsible for the T.A.E Team as well as the marketing responsibility for Operator Interface products.

Reporting to Eric are:

• Konrad Heyer, T.A.E. South Western Ontario
• Darrell Ouellette, T.A.E. Prairies
• Marc Croteau, T.A.E. Eastern Canada
• Ann Sykes, T.A.E. Support Specialist

Mike Nugent and Alain De Serres continue in their current roles and responsibilities.

The following changes, effective immediately will support our effort to harmonize strategy and better utilize resources allowing us to capitalize on market opportunities.

Perry D'Ortenzio
Industrial Marketing Manager




RE: MARKETING, Eaton Electrical, Canadian Operations

I am very pleased to announce the appointment of Douglas Young to the position of Product Manager - Adjustable Frequency Drives, effective September 5. Doug's primary responsibility will be to manage the content, mix and price of the drives product line including product development and marketing support plans to meet the strategic and financial objectives. Doug will be based out of our Burlington headquarters and will report directly to the Industrial Marketing Manager.

An Electronics graduate from St. Lawrence College in Kingston, Doug has broad VFD industry experience beginning his career with Relcon Inc. and has held positions with Siemens Electric Ltd., Eurotherm Drives and most recently Teco-Westinghouse Motors Inc.

Doug's professional experience will be a valued asset as we aggressively grow our Adjustable Frequency Drives business.

Please join me in welcoming Doug to Eaton and wishing him succes in his new assignment.

Perry D'Ortenzio
Industrial Marketing Manager




RE: MARKETING, Eaton Electrical, Canadian Operations

I am very pleased to announce the appointment of Tony Arthur to the position of Technical Sales Support Manager, effective September 18th, 2006. Tony's primary responsibility will be to manage the creation and dissemination of technical sales and application tools and to provide technical product support for Eaton's Power Quality solutions.

Productivity and energy costs are critical to maintaining our standard of living in Canada and are a significant market opportunity for Eaton Electrical. The Technical Sales Support Manager will focus on providing the training and expertise to support the selling effort.

Tony's broad experience with automation products, PLC's and communications systems and his skill as an instructor are key assets to succeed in this newly created position.

Tony is a Certified Engineering Technologist and a graduate of the Saskatchewan Institute of Applied Science and Technology (SIAST).

Please join me in welcoming Tony to this challenging and important assignment.

Derek J. Wall, P.Eng.,
Manager, Distribution Components