Textron Continues Move Into Data-Signal-Voice Test Equipment Market with Acquisition of Two Industry Leaders

    PROVIDENCE, R.I.--July 18, 2001--Advancing its strategy to expand in the growing telecommunications test and measurement equipment market, Textron Inc. today announced it has acquired Industrial Technology, Inc., based in Mineral Wells, TX, and Opto-Electronics Inc., based in Oakville, Ontario. The companies will become part of Tempo, a unit of Textron that develops tools and technologies to install, test and measure the performance of copper and fiber-optic networks. Terms of the transaction were not disclosed. Textron has acquired eight companies in the telecommunications test equipment industry during the past three years.
    "The worldwide market for these products is estimated to be over $7 billion and is predicted to grow at a double-digit pace for the next decade. Supporting Textron's overall portfolio strategy, we will continue to increase our share of this attractive market through strong organic growth coupled with strategic acquisitions such as these," said Textron Chairman and Chief Executive Officer Lewis Campbell.
    "Growth in telecom and datacom test equipment continues to outperform the overall telecom sector and is a significant long-term growth opportunity. Demand in the `last mile' part of the telecommunications network, in particular, is being driven by end users' need for high speed internet access and improved capabilities. Industrial Technology and Opto-Electronics are leaders in this technology and target this end of the market with superior products and services," said Tempo President Scott Hall.
    Industrial Technology manufactures the leading Throwmaster(R) test set which permits the transfer of telephone service from one cable to another without interruption of service. It also designs, manufactures and markets digital signal identifiers and tone probes, cable fault locators, and a unique line of electronic marking and locator equipment. Projected 2001 sales for Industrial Technology are $20 million with double-digit growth expected going forward.
    Opto-Electronics produces unrivaled high-speed fiber-optic test instruments for the telecommunications, aerospace and defense industries. Products include high-resolution picosecond (one trillionth of a second) Optical Time Domain Reflectometers (OTDRs), fiber-optic systems, pulsed lasers and photodetectors. Opto-Electronics also offers various services including training, consultation and calibration of equipment. Projected 2001 sales are $5 million.
    "By integrating Industrial Technology and Opto-Electronics into Tempo we are adding additional capabilities to our comprehensive portfolio of valuable, time- and labor-saving products serving a broad range of customers. Both businesses bring unique technology and product lines which will benefit from Tempo's worldwide sales and marketing capabilities," said Hall.
    Tempo (www.tempo.textron.com) integrates a number of strategic, market-leading acquisitions made by Textron in the telecom/datacomm market over the past three years. Tempo provides customer-focused products and expertise for communications installation, testing and maintenance. International customers include datacommunications and telecommunications service providers, manufacturers, cable television companies, distributors and contractors. Tempo brands include Chesilvale, Datacom, Greenlee Data/Signal/Voice, IMAP, Progressive, RIFOCS, and Tempo.
    Textron Inc. (www.textron.com) is a $13 billion, global, multi-industry company with market-leading businesses in Aircraft, Automotive, Industrial Products, Fastening Systems and Finance. Textron has a workforce of 70,000 employees and major manufacturing facilities in 30 countries. Textron is among Fortune magazine's "Global Most Admired Companies" and Industry Week magazine's "Best Managed Companies."

    Forward-looking Information: Certain statements in this release and other oral and written statements made by Textron from time to time, are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent to which Textron is able to implement and complete its restructuring plan (b) the extent to which Textron is able to successfully integrate recent acquisitions, (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates, (d) the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers, (e) government funding and program approvals affecting products being developed or sold under government programs, (f) successful implementation of supply chain and e-procurement strategies, (g) the timing of certifications of new aircraft products, (h) the occurrence of a severe downturn in the economies in which Textron operates that could reduce demand for its products (i) the level of consumer demand for the vehicle models for which Textron supplies parts to automotive original equipment manufacturers ("OEMs"), (j) Textron's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by OEM customers, and (k) Textron Financial's ability to maintain credit quality and control costs when entering new markets.