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Textron Forms E-Commerce Partnership With Safeguard Scientifics

10 January 2000

Textron Forms E-Commerce Partnership With Safeguard Scientifics; Strategic Alliance will Keep Textron at the Forefront of Internet Technology

    PROVIDENCE, R.I.--Jan. 10, 2000--As part of a continuing company-wide initiative to further accelerate and support its e-commerce activities, Textron Inc. today announced an agreement in principle to form a strategic alliance with Safeguard Scientifics , an internet holding and operating company with a network of 250 internet-related technology companies. Under the arrangement, Textron will invest $100 million for 727,273 shares of Safeguard common stock and will work with Safeguard partner companies to develop and execute its global e-commerce strategies.
    Safeguard's extensive network of internet-related technology companies, led by aligne and Cambridge Technology Partners, will assist Textron in the implementation of e-commerce capabilities that range from online procurement, sales and distribution to web-enabled applications and other leading e-commerce solutions. Under the arrangement, Textron will have preferred access to Safeguard's partner companies' products and services and will work with Safeguard's network to develop next-generation technologies and solutions. The alliance will also provide Safeguard immediate access to Textron's array of market-leading aircraft, automotive, industrial and commercial finance businesses.
    "This alliance will give us access to the most advanced and emerging e-business solutions, enabling us to accelerate the process of identifying and implementing the best technological solutions for our business needs," said Textron Chairman and Chief Executive Officer Lewis B. Campbell. "As a multi-industry company with a common operating and management focus, Textron is able to maximize its diversity and drive its e-commerce strategy throughout the enterprise. By accessing and leveraging the broad technological expertise of Safeguard's partner network, Textron is making e-progress at e-speed."
    "Our partnership with Textron underscores the value of a strategic relationship with Safeguard and recognizes the value inherent in our partner network," said Pete Musser, Safeguard's Chairman and CEO. "We welcome Textron into the Safeguard family and are committed to providing a team of experts from our partner companies who will quickly develop and implement multi-faceted, strategic e-commerce initiatives that will help Textron realize its full potential in its rapidly changing global markets."
    Textron Chief Information Officer Kenneth Bohlen added, "Through this alliance with Safeguard, Textron will further accelerate its e-business development by integrating capabilities such as collaborative commerce, web-based procurement, electronic global talent pool management and advanced applications building."
    This strategic alliance was initiated by Greenhill & Co., LLC, who acted as exclusive financial advisor to Textron.

    Safeguard (www.safeguard.com) is a business-to-business Internet-centric holding and operating company, which incubates, acquires, operates and manages B2B companies engaged in e-commerce, e-communications, and e-business software and services. Safeguard also participates in several private equity funds, which has helped to expand the Safeguard network to 250 Internet-related companies. Safeguard generally acquires ownership interests in companies that allow it to have a significant influence over their direction and management over the long-term. Safeguard also seeks to maximize shareholder value through its Safeguard Subscription Program, which allows shareholders to participate in the IPOs of Safeguard's partner companies. Safeguard's partner network encompasses 40 directly held partner companies, including Internet Capital Group, US Interactive, Pac-West Telecomm, eMerge Interactive, 4anything.com, Opus 360, Sanchez, DocuCorp, USDATA, OAO Technology Solutions, CompuCom, Tangram and ChromaVision among others, and 210 indirectly held partner companies through its private equity funds, creating one of the largest support networks available to both entrepreneurs and companies.

    Textron Inc. (www.textron.com) is an $11.5 billion, global, multi-industry company with market-leading businesses in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 65,000 employees and major manufacturing facilities in 27 countries. Textron is among Fortune magazine's "Global Most Admired Companies."