ITW Reports 7 Percent Growth in Operating Revenues for Three Months Ended February 28, 2006; Base Revenues Increase 5 Percent for Three Month Period; Company Raises First Quarter and Full-Year Earnings Guidance

GLENVIEW, Ill., March 15 -- Illinois Tool Works Inc. today reported an operating revenue increase of 7 percent for the three months ended February 28, 2006. Operating revenues for the three month period consisted of 5 percent growth from base revenues and a 6 percent increase from acquisitions. Currency translation and intercompany sales lowered revenues 4 percent in the period. Strong demand from North American end markets, particularly those served by the Company's Specialty Systems business units, continued to drive base revenue growth.

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 February 28, 2006 versus prior year period)

       *Engineered Products/North America:          +  9%
       *Engineered Products/International:          +  4%
       *Specialty Systems/North America:            +  15%
       *Specialty Systems/International:            +  12%

After two months of actual results, the Company has experienced much stronger base revenue growth and operating margin performance than originally anticipated. As a result, the Company is now raising its 2006 first quarter forecasted range of earnings to $1.23 to $1.27 from the prior forecast of $1.12 to $1.18. For full-year 2006, the Company also is increasing its forecasted range of earnings to $5.76 to $5.94 from the earlier forecast of $5.60 to $5.78. For the first quarter, base revenues are now expected to grow in a range of 4.9% to 5.7%. For the full-year, base revenues are forecasted to grow in a range of 4.2% to 5.6%.

The statements regarding the Company's 2006 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 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-K for 2005.

ITW is a $12.9 billion in revenues diversified manufacturer of highly engineered components and industrial systems and consumables. The company consists of approximately 700 business units in 48 countries and employs some 50,000 people.