Eaton Corp. Names Lead Logistics Provider in Europe

Penske Logistics to supply transportation management services, comprehensive supply chain redesign program for industrial manufacturer

Cleveland, OH — February 14, 2006 — Today, Eaton Corp. announced that it selected Penske Logistics to serve as its lead logistics provider in Europe. While financial terms of the deal were undisclosed, the new contract builds upon a well-established relationship between the two companies in the United States.

Eaton Corp. is a diversified industrial manufacturer with 2005 sales of $11.1 billion. The firm has 59,000 employees and sells products to customers in more than 125 countries.

"Penske Logistics was selected by Eaton Corp. based on its strategic planning and supply chain management expertise in Europe, and our focus on long-term solutions that drive down costs," explained Erik van Egmond, managing director of Penske Logistics Europe. "We are particularly excited to work with Eaton on this project due to its diversified industrial base and dynamic supply chain needs."

Under the new agreement, Penske Logistics will provide transportation management services, which includes the management and procurement of transportation, followed by a comprehensive supply chain redesign program for Eaton's European manufacturing operations, which span 13 countries.

Eaton's European Supply Chain Director, Les Ball, said, "We are delighted to work with Penske, a partner who will provide us with supply chain insights and help us reduce our total operational cost."

Mario Hegewald, Eaton's global logistics director, added, "This program with Penske will be one of our key strategic projects for 2006 as we develop our footprint in Europe. The first step will be for Penske to implement their transportation management system and the day-to-day handling of Eaton's inbound and outbound flows. Penske will optimize and redesign the transport network by combining shipments with other Penske customers."

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