Woodward Announces Dividend Increase

    ROCKFORD, Ill.--Jan. 22, 2003--Woodward Governor Company announced today that its Board of Directors has approved an annualized cash dividend of $0.96 per share, payable to shareholders on a quarterly basis beginning in March 2003. This represents a 3.23 percent increase over the 2002 dividend of $0.93 per share.
    "Woodward has consistently paid dividends over the past 63 years to provide additional value to our shareholders," said John A. Halbrook, Woodward's Chairman and Chief Executive Officer. "This increase is a clear signal of the Company's ongoing financial strength and solid growth prospects."

    About Woodward

    Headquartered in Rockford, Illinois, Woodward has over 3,300 employees serving global markets from locations worldwide. Woodward designs, manufactures and services energy control systems and components for aircraft and industrial engines, turbines and other power equipment. The Company's products and services are used in the aerospace, power generation, oil and gas processing, and transportation markets, which include rail, marine and many light and heavy industrial applications. Visit our Web site at www.woodward.com.

    The statements in this release concerning the company's future sales, earnings, dividends, business performance, prospects, and the economy in general reflect current expectations and are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from projections or any other forward-looking statement and we have no obligation to update our forward-looking statements. Factors that could affect performance and could cause actual results to differ materially from projections and forward-looking statements are described in Woodward's Annual Report and Form 10-K for the year ended September 30, 2002, and Form 10-Q for the quarterly period ended December 31, 2002 (expected to be available by mid-February, 2003).