ITW Reports 10 Percent Growth in Operating Revenues for Three Months Ended May 31, 2005; Base Revenues Increase 3 Percent for Three Month Period; Company Lowers Second Quarter and Full-Year Earnings Forecasts As End Markets Show Slower Growth

GLENVIEW, Ill., June 15 -- Illinois Tool Works Inc. today reported an operating revenue increase of 10 percent for the three months ended May 3, 20051, 2005. Operating revenues for the three month period consisted of 3 percent growth from base revenues, a 6 percent increase from acquisitions, and a 3 percent contribution from currency translation. Leasing and Investments and intercompany revenues reduced top line growth 2 percent in the most recent three month period. While base revenues grew 3 percent in the period, it represented the fourth consecutive three-month reporting period of decline in base revenues. This sequential weakness reflected continued slowing in a variety of the Company's North American and international end markets, especially market demand for short-cycle engineered products.

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

     (% change for 3 months ended May 31, 2005 versus prior year period)

     *Engineered Products/North America:          + 11%
     *Engineered Products/International:          +  9%
     *Specialty Systems/North America:            +  8%
     *Specialty Systems/International:            +  7%

After two months of actual results and the corresponding slowing in end markets, the Company is lowering its 2005 second quarter earnings range estimate to $1.22 to $1.26 for net income per diluted share. For full-year 2005, the Company also is lowering its earnings range estimate to $4.90 to $5.00 for net income per diluted share. The revised forecast assumes base revenue growth of 3.7 percent for the second quarter and 4.0 percent for the full-year versus prior base revenue forecast increases of 5.7 percent and 5.3 percent, respectively.

The statements regarding the Company's 2005 earnings estimates are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's second quarter and full year forecasts. These statements are subject to certain risks, uncertainties and other factors, which 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 in ITW's Form 10-Q for the 2005 first quarter.

ITW is an $11.7 billion in revenues diversified manufacturer of highly engineered components and industrial systems. The company consists of approximately 650 decentralized operations in 45 countries and employs some 49,000 people.