H-1 Program Achieves Milestones

July 17, 2006

Farnborough Air Show - July, 17 2006 - Bell Helicopter, a Textron Inc. (NYSE: TXT) company, recently noted that in an H-1 program update several milestones were being met. Last month the Navy Acquisition Board authorized Low Rate Initial Production (LRIP) Lot III for 7 UH-1Y's. The H-1 program consists of both the AH-1Z attack helicopter and the UH-1Y utility helicopter.

Currently there are 12 aircraft on the assembly line at Bell's Amarillo facility with 2 Cobra's (AH-1Z) and 3 Yankee's (UH-1Y) in final assembly. The Navy is scheduled to receive 4 aircraft in 2006 with the numbers increasing progressively through 2009 when 15 will be delivered.

Michael Redenbaugh, CEO of Bell stated, "We are pleased with the progress on the H-1 program and the value it provides for the war fighter. The unique benefits of the highly integrated Attack and Utility Aircraft, with a substantial increased performance will validate the Marines vision with this weapons system."

With the EMD phase 99% completed and 4 helicopters in OPEVAL, Bell sees the positive results from the manufacturing focus it has placed on this program. Redenbaugh says, "Our focus remains on supporting a successful Operational Evaluation, increasing the rate of production and driving down costs."

As originally conceived the H-1 program creates two helicopters with considerable commonality. The AH-1Z and the UH-1Y share common tail boom, engines, rotor system, drive train, avionics architecture, software, controls and displays for over 84% identical components. This should drive down maintenance while improving reliability for a cost savings of over $3B over the 30 year program.

Both aircraft will provide dramatic increases in range, payload and speed and simplified training for pilots and maintenance personnel.

Bell Helicopter is an industry-leading producer of commercial and military, manned and unmanned vertical lift aircraft and the pioneer of the revolutionary tilt rotor aircraft. Globally recognized for world-class customer service, innovation and superior quality, Bell's global workforce serves customers flying Bell aircraft in more than 120 countries.

Textron Inc. is a $10 billion multi-industry company operating in 33 countries with approximately 37,000 employees in continuing operations. The company leverages its global network of aircraft, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.

Forward-looking Information: This release contains forward-looking statements regarding a U.S. Government program awarded to Bell Helicopter. These forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: [a] Textron's ability to perform as anticipated and to control costs under contracts with the U.S. Government; [b] the U.S. Government's ability to unilaterally modify or terminate its contracts with Textron for the Government's convenience or for Textron's failure to perform, to change applicable procurement and accounting policies, and, under certain circumstances, to suspend or debar Textron as a contractor eligible to receive future contract awards; and [c] changes in national or international funding priorities and government policies on the export and import of military and commercial products.

Connect with Textron IR

Eric Salander, Vice President, Investor Relations
(401) 457-2288
Cameron Vollmuth, Manager,
Investor Relations (401) 457-2288

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