Axcelis Announces Dividend Distribution Of Shares

Eaton Corp. (Cleveland, OH) and Axcelis Technologies Inc. (Beverly, MA) announced that the Eaton board of directors has declared a dividend distribution of Axcelis shares. The dividend will be distributed on December 29, 2000, to Eaton shareholders of record as of 5 p.m., Eastern Standard Time on December 6, 2000. Eaton currently holds 79,994,900 shares, or approximately 82 percent, of the outstanding common stock in Axcelis. The Axcelis shares will be distributed to Eaton shareholders of record in the amount of approximately 1.15 shares of Axcelis for each Eaton share. The final ratio will be based on the actual number of Eaton shares outstanding on the record date. On October 20, 2000, Eaton had 69,856,828 million shares outstanding.Eaton shareholders will receive whole shares of Axcelis, and cash payments for fractional shares. On October 13, 2000, Eaton received a ruling from the Internal Revenue Service that this stock distribution to shareholders qualifies as tax-free for US federal income-tax purposes. Cash received in lieu of fractional shares will be taxable.