We report the first observation of the processes e(+)e(-) -> Upsilon(1S, 2S)eta at root s = 10.866 GeV, with significance exceeding 10 sigma for both processes. The measured Born cross sections are sigma(e(+)e(-) -> Upsilon(2S)eta) = 2.07 +/- 0.21 +/- 0.19 pb, and sigma(e(+)e(-) -> Upsilon(1S)eta) = 0.42 +/- 0.08 +/- 0.04 pb.
We also set the upper limit on the cross section of the process e(+)e(-) -> Upsilon(1S)eta to be sigma(e(+)e(-) -> Upsilon(1S)eta') < 0.037 pb at 90% C.L. The results are obtained with the data sample collected with the Belle detector at the KEKB asymmetric-energy e(+)e(-) collider in the energy range from 10.63 to 11.02 GeV.