Cessna Aircraft Enters Acquisition Discussions with Columbia Aircraft

September 24, 2007
Wichita, KS and Bend, OR - September 24, 2007 - Cessna Aircraft Company, the world's leading manufacturer of general aviation aircraft and a subsidiary of Textron Inc. (NYSE: TXT), said today it has signed a Letter of Intent (LOI) with Columbia Aircraft Manufacturing Corporation to acquire selected assets and certain liabilities of the Bend, Oregon-based aircraft manufacturer.

According to Cessna Chairman, President and CEO Jack J. Pelton, “Columbia's unique capability in the high-end single-engine piston market makes it a perfect complement to our Next Generation Piston product line and could provide our customers with the option of an outstanding low-wing, high-performance piston airplane. We believe the combination of this superb product line and Cessna's world class support structure and brand will be unbeatable.”

Columbia today filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

“We have explored many options over the past months,” said Columbia Chief Restructuring Officer Carl Young. “This path enables the Company to manage its present cash flow and liabilities while pursuing a plan that enables us to continue operating until a final sale can be completed.”

Columbia submitted a motion with the Bankruptcy Court seeking approval of the sale to Cessna and establishing bidding procedures that enable other interested bidders to submit offers and bid at an auction to be held in November. The sale to Cessna is contingent upon the approval of the Bankruptcy Court and the satisfaction of the closing conditions set forth in the LOI, including the execution of a definitive purchase agreement with Cessna.

“The sale of Columbia Aircraft Manufacturing assets to Cessna offers the best avenue to maximize value for all of Columbia's stakeholders and existing and future customers. Cessna is excited about the prospect of adding the Columbia products to its product line and will provide additional capabilities, world-class processes and financial strength to effectively serve existing Columbia customers and grow the business. Under the agreement reached with Cessna all product warranty and service issues will continue to be honored post-acquisition and customers should expect an enhanced customer experience once the deal closes,” Young said.

Young emphasized that the bankruptcy filing was deemed necessary to enable the Company to continue its operations including manufacturing and delivering of new aircraft and uninterrupted support of the installed customer through parts, warranty and technical assistance.

Columbia Aircraft Manufacturing Corporation employs approximately 440 people and last year reported annual revenue of $ 90 million. The company manufactures a variety of all-composite aircraft, including the Columbia 400 – arguably the worlds fastest certified piston-single. The Columbia 350, 350i, 350SL and 350SLX are normally aspirated, four-place aircraft with a cruise speed of 191 knots. The Columbia 400, 400i, 400SL and 400SLX are intercooled, twin-turbocharged, four-place aircraft certified to FL250 with a cruise speed of 235 knots. In addition to providing legendary performance, both models are renowned for their high level of standard equipment and quality and safety features, including dual electrical systems, dual wing spars and Utility Category certification.

Based on unit sales, Cessna Aircraft Company is the world's largest manufacturer of general aviation airplanes. In 2006, Cessna delivered 1,239 aircraft, including 307 Citation business jets, and reported revenues of about $4.2 billion and a backlog of $8.5 billion. Since the company was originally established in 1927, some 190,000 Cessna airplanes have been delivered to nearly every country in the world. The global fleet of more than 5,000 Citations is the largest fleet of business jets in the world. More information about Cessna Aircraft Company is available at www.cessna.com.

Textron Inc. is an $11 billion multi-industry company operating in 32 countries with approximately 40,000 employees. 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 Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Fluid & Power, Textron Systems and Textron Financial Corporation. More information is available at www.textron.com.

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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