Textron Sells OmniQuip's Snorkel Product Line to Elwood Holdings, LLC

    PROVIDENCE, R.I.--Dec. 27, 2002--Textron Inc. today announced that it has sold the Snorkel product line of its OmniQuip business unit as well as the OmniQuip Textron Inc. holding company to Elwood Holdings, LLC. Terms were not disclosed.
    The Snorkel line includes aerial work platforms and boom lifts for industrial uses such as maintenance and construction. The Snorkel product line had revenues of approximately $37 million during 2002. OmniQuip ceased US production of its Snorkel product line earlier this year.
    This transaction will create a tax benefit of approximately $50 million related to the goodwill write-off of OmniQuip Textron Inc. taken in the third quarter of 2001, at which time only a portion of the tax benefit was realized.
    Textron is retaining the SKY TRAK and Lull telescopic material handler products line as well as the rights to the OmniQuip name. Revenues for the remaining product lines were approximately $220 million during 2002.
    Last year, Textron sold OmniQuip's SCAT TRAK product line of skid steer loaders. These sales are part of Textron's strategy to divest non-core assets to create a simpler, more focused network of strong businesses in attractive industries.
    Textron Inc. is a $12 billion multi-industry company with more than 51,000 employees in 40 countries. The company leverages its global network of businesses to provide customers with innovative solutions and services in industries such as aircraft, fastening systems, industrial products and components and finance. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.

    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 achieve savings from its restructuring plans, (b) changes in worldwide economic and political conditions that impact interest and foreign exchange rates, (c) the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers, (d) government funding and program approvals affecting products being developed or sold under government programs, (e) cost and delivery performance under various program and development contracts, (f) the adequacy of cost estimates for various customer care programs including servicing warranties, (g) successful implementation of supply chain and other cost reduction programs, (h) the timing of certifications of new aircraft products, (i) the occurrence of further downturns in customer markets to which Textron products are sold or supplied, (j) Textron's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers, (k) the availability and cost of insurance, (l) pension plan income falling below current forecasts, (m) Textron Financial's ability to maintain credit quality and control costs; and (n) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.