ITW Reports Flat Operating Revenues for Three Months Ended July 31, 2001

    GLENVIEW, Ill., Aug. 16 Illinois Tool Works Inc.
today reported flat operating revenues for the three months ended
July 31, 2001.  Operating revenues consisted of 8 percent growth from
acquisitions, offset by a 6 percent decline from base businesses and a
2 percent decrease due to the impact of currency translation.  The revenue
performance for the three-month period was directly attributable to the weak
North American economy and its impact on a wide variety of the company's North
American end markets, including automotive, general industrial and
construction.

    On a manufacturing segment basis, the company's three month moving average
percentage change for revenues is provided below.

    (% change for 3 months ended July 31, 2001 versus prior year periods)
                                                 July

          *Engineered Products/North America:    - 7%
          *Engineered Products/International:    +12%
          *Specialty Systems/North America:      + 8%
          *Specialty Systems/International:      + 3%
          *Consumer Products:                    -11%

    The Company continues to forecast that diluted earnings per share is
expected to be in the range of 65 cents to 75 cents for the 2001 third quarter
and $2.75 to $2.95 for full year 2001.

    Statements regarding the Company's 2001 earnings estimates and future
trends in end markets are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.  These statements are
subject to certain risks, uncertainties, and other factors that could cause
actual results to differ materially from those anticipated.  Important factors
that could cause actual results to differ materially from the Company's
expectations are set forth on page 26 of ITW's 2000 Annual Report to
Shareholders.