ITW Reports 11 Percent Growth in Operating Revenues for Three Months Ended February 29, 2004; Base Business Revenues Total 3 Percent for Three Month Period; Company Revises Forecasts Upward for 2004 First Quarter and Full Year

GLENVIEW, Ill., March 15 -- Illinois Tool Works Inc. today reported an operating revenue increase of 11 percent for the three months ended February 29, 2004. Operating revenues for the three month period consisted of 3 percent growth from base business, 4 percent growth from acquisitions, and a 6 percent contribution from currency translation. The growth in revenues in the three month period was offset by a combined 2 percent decline in Leasing and Investments as well as intercompany revenues. Base business revenues for the three month period improved as the Company's diversified end markets, particularly in North America, showed strength in February.

On a manufacturing segment basis, the Company's three month moving average percentage change for operating revenues, comprised of base business and acquisitions, is provided below.

   (% change for 3 months ended February 2004 versus prior year period)
                                       February
   *Engineered Products/North America:  +  5%
   *Engineered Products/International:  +  6%
   *Specialty Systems/North America:    + 12%
   *Specialty Systems/International:    +  5%

After two months of actual results in the 2004 first quarter, the Company is narrowing and moving its range upward to 80 cents to 84 cents for income per diluted share for continuing operations. For full-year 2004, the Company is revising its range upward to $3.70 to $4.00 for income per diluted share from continuing operations. The improvement in the Company's first quarter and full-year forecasts is based on improving end market activity in North America and the related impact on base revenues. In addition, the impact of translation continues to be a strong contributor to income growth.

The statements regarding the Company's 2004 earnings estimates are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's first quarter and full year forecasts. These statements are subject to certain risks, uncertainties and other factors, which could cause actual results to differ materially for those anticipated. Important factors that could cause actual results to differ materially from the Company's expectations are set forth in ITW's Form 10-K for full-year 2003.

ITW is a $10.0 billion diversified manufacturer of highly engineered components and industrial systems. The company consists of approximately 625 decentralized operations in 44 countries and employs some 47,500 people.