ITW Reports 10 Percent Growth in Operating Revenues for Three Months Ended November 30, 2006; Base Revenues Increase 2 Percent for Three Month Period; Company Lowers Forecast for Fourth Quarter

GLENVIEW, Ill., Dec. 15, 2006 -- Illinois Tool Works Inc. today reported an operating revenue increase of 10 percent for the three months ended November 30, 2006. Operating revenues for the three month period consisted of 2 percent growth from base revenues, a 7 percent increase from acquisitions and a 1 percent contribution from translation and other items. While base revenue growth benefited from strong demand from a broad array of international end markets, a number of North American end markets continued to show signs of moderation or decline for the three month period.

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 November 30, 2006 versus prior year period)

    *Engineered Products/North America:       +  1%
    *Engineered Products/International:       +  6%
    *Specialty Systems/North America:         + 11%
    *Specialty Systems/International:         + 23%

After two months of lower than expected base revenue growth in the 2006 fourth quarter and anticipated continuing weakness in North America end markets in December, the Company is decreasing its forecasted earnings range to $0.72 to $0.74 from the prior range of $0.77 to $0.81. As a result, the Company's full-year forecasted earnings range is now $2.96 to $2.98 compared to the prior range of $3.01 to $3.05. Base revenues now are expected to grow in a range of 1.8 percent to 2.4 percent for the fourth quarter and 3.7 percent to 3.8 percent for the full year. The previous base revenue ranges were 3.1 percent to 5.1 percent for the fourth quarter and 4.0 percent to 4.6 percent for the full year. The midpoint of these newly forecasted ranges would represent earnings growth of 3 percent in the fourth quarter and 14 percent for the full-year.

The statements regarding future end market activity as well as 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 fourth 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 third 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.