ITW Reports 10 Percent Growth in Operating Revenues for Three Months Ended July 31, 2006; Base Revenues Increase 4 Percent for Three Month Period

GLENVIEW, Ill., Aug. 16, 2006 -- Illinois Tool Works Inc. today reported an operating revenue increase of 10 percent for the three months ended July 31, 2006. Operating revenues for the three month period consisted of 4 percent growth from base revenues and a 7 percent increase from acquisitions. Intercompany revenues lowered revenues 1 percent in the period. Base revenue growth benefited from both North American and international end market demand.

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 July 31, 2006 versus prior year period)

    *Engineered Products/North America:            +   13%
    *Engineered Products/International:            +    6%
    *Specialty Systems/North America:              +   12%
    *Specialty Systems/International:              +   11%

After one month of actual results, the Company continues to forecast a third quarter earnings range of $0.78 to $0.82. For full-year 2006, the Company also continues to forecast an earnings range of $3.03 to $3.11. Both forecasted earnings ranges reflect ITW's two-for-one stock split which was effective in May of this year. For the third quarter, base revenues are expected to grow in a range of 4.0 percent to 6.0 percent. For the full-year, base revenues are forecasted to grow in a range of 4.7 percent to 5.7 percent.

The statements regarding the Company's 2006 earnings and revenue growth estimates are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's third 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 second quarter of 2006.

ITW is a $12.8 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.