In a surprise decision, John McCain has named 44-year-old Alaska Gov. Sarah Palin as his vice-presidential running mate.

McCain made the announcement in Dayton, Ohio on Friday, calling it a hard-working city that deserved a vice president who would "stand on your side and not in your way."

He said he has spent months searching for the right candidate and described Palin as "someone with strong principals, a fighting spirit and deep compassion."

He said the little known governor and mother of five -- whom many media organizations are scrambling to learn about -- grew up in a working-class family, was a member of a union and is married to a union member and "understands the problems and hopes of working people."

"She knows where she comes from and she knows who she works for. She stands up for what's right and she doesn't let anyone tell her when to sit down," McCain said to thousands of cheering supporters. 

"She's exactly who I need, she's exactly who this country needs to help me fight the same old Washington politics of me first and country second. My friends and fellow Americans I am very pleased and very priviledged to introduce to you the next vice president of the United States, Gov. Sarah Palin of the great state of Alaska."

Palin, a self-described former "hockey mom" introduced her husband Todd, a commercial fisherman, and four of her five children, including her youngest, a three-month-old. Her eldest son, who recently enlisted in the U.S. military and will be deployed to Iraq on Sept. 11, was not at the announcement.

She said she knew she had been chosen from a short list of qualified contenders.

"To have been chosen brings a great challenge. I know it will demand the best that I have to give and I promise nothing less," Palin said.

The governor who has made her name in Alaska by fighting corruption and standing up to powerful oil interests vowed to continue to stand up for what she believes in.

"It's always safest in politics to avoid risk, to sort of go along, status quo. But I didn't get into politics to do the safe things. A ship in harbour is safe, but that's not what it was built for," Palin said to raucous applause. 

The former city councillor who went on to become mayor of her hometown in Alaska, was a dark horse contender for the job. She appears to have been chosen in a bid to help the McCain camp bring disaffected Hillary Clinton supporters into the Republican fold.

Palin was selected over other front-runner candidates for vice president, including Minnesota Gov. Tim Pawlenty, Massachusetts Gov. Mitt Romney, former Pennsylvania Gov. Tom Ridge and Democrat-turned-independent Connecticut Sen. Joe Lieberman.

McCain is expected to appear with Palin at two or more rallies in Ohio, Pennsylvania and Missouri ahead of the Republican National Convention which begins Monday in St. Paul, Minn.

McCain's announcement of his running mate came on his 72nd birthday, and one day after his Democratic opponent Barack Obama brought 84,000 people to their feet with his powerful message of change.

Obama 

After hearing of McCain's choice of running mate, Democratic nominee Barack Obama congratulated Palin.

He told reporters in Pennsylvania while he hasn't met her, Palin seems like "a compelling person" with a "terrific" personal story.

His comments followed remarks from his own campaign criticizing the Alaska governor. An Obama spokesman called Palin the former mayor of a town of 9,000 with zero foreign policy experience.

The campaign later issued a release that softened their response, calling the choice of Palin "another encouraging sign that old barriers are falling in our politics," and an "admirable person."

McCain's announcement came the day after Obama accepted his party's nomination and stole headlines away from the Democratic campaign.