AAI and Carter Aviation Technologies Enter Exclusive Licensing Agreement for Slowed Rotor/Compound Technology.

Agreement Accelerates Development of High-Performance, High-Value Unmanned Aircraft for Broader Range of Missions

HUNT VALLEY, Md. -- AAI Corporation, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT) company, announced today that it has entered into a licensing agreement with Carter Aviation Technologies LLC, giving AAI exclusive access to Carter's Slowed Rotor/Compound (SR/C) technology for all unmanned aircraft applications. AAI will provide guidance, support and resources to Carter for continued development and maturation of its SR/C technology, after which AAI intends to develop unmanned aircraft variants for several applications.

Carter's SR/C technology is a fixed- and rotary-wing hybrid that uses multiple proprietary approaches to deliver high speed, long endurance and vertical/short takeoff and landing capability at low cost. These features are well suited for unmanned aircraft that serve multiple mission roles. With runway-independent capability, expeditionary operations typically reserved for conventional vertical-lift platforms can be executed without the cost and performance penalties inherent in those traditional vertical takeoff and landing platforms.

Leveraging SR/C technology and the civil four-place primary aircraft components, Carter and AAI are evaluating an unmanned aircraft design employing a turbine engine. At 7,250 pounds gross weight and with 4,750 pounds of useful load, the SR/C unmanned aircraft is expected to deliver 3,000 pounds of cargo to a range of over 1,300 nautical miles at speeds up to 250 knots. Configured for multi-role missions, the SR/C unmanned aircraft is expected to deliver endurance in excess of 24 hours, making it ideally suited for intelligence, surveillance and reconnaissance; signals intelligence; electronics intelligence; strike; electronic warfare and other mission profiles. In addition, its design would combine this level of performance within an expeditionary, runway-independent vehicle.

This 40-year exclusive agreement leverages AAI's decades of experience designing, developing, manufacturing, fielding and servicing a diverse fleet of unmanned aircraft and innovative, interoperable command-and-control technologies. Its highly successful Shadow([R]) Tactical Unmanned Aircraft System has accumulated more than 450,000 flight hours among customers including the U.S. Army, Marine Corps, Army National Guard and Army Special Forces. AAI's Aerosonde([R]) fleet of small unmanned aircraft systems are lightweight and offer long endurance, mission flexibility and an expeditionary footprint. AAI's One System([R]) Ground Control Station and One System Remote Video Terminal deliver reliable, comprehensive command, control and data dissemination for unmanned platforms and seamless manned/unmanned teaming.

"Carter Aviation Technologies and AAI Corporation are experts in their respective domains, and SR/C offers the best qualities of fixed- and rotary-wing technologies in a single aircraft -- high-speed cruise with runway independence at an affordable cost," says Senior Vice President and General Manager Ellen Lord of AAI. "This combination of expertise and innovative technologies will enable us to extend the superior performance and great value our customers have come to expect from AAI's unmanned aircraft systems to new applications."

About AAI

AAI Corporation designs, produces, and supports aerospace and defense systems through its direct and indirect wholly owned subsidiaries, AAI Services Corporation, Aerosonde Pty Ltd, ESL Defence Limited, and Symtx, Inc. Its high-technology products and services include unmanned aircraft systems, training and simulation systems, automated aerospace test and maintenance equipment, armament systems, aviation ground support equipment, and logistical, engineering, and supply chain services. AAI Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at www.aaicorp.com.

About Textron Systems

Textron Systems Corporation has been providing innovative solutions to the defense, homeland security and aerospace communities for more than 50 years. Known for its unmanned aircraft systems, advanced marine craft, armored vehicles, intelligent battlefield and surveillance systems, intelligence software solutions, precision smart weapons, piston engines, test and training systems, and total life cycle sustainment services, Textron Systems includes AAI Corporation, Lycoming Engines, Overwatch, Textron Defense Systems and Textron Marine & Land Systems. Textron Systems Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at www.textronsystems.com.

About Textron Inc.

Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, 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, and Textron Systems. More information is available at www.textron.com.

AAI and Shadow are registered trademarks of AAI Corporation. Aerosonde is a registered trademark of Aerosonde Pty Ltd. One System is a registered trademark of the U.S. Army.

Forward-looking Information: Certain statements in this press release are forward-looking statements and 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 but not limited to the following: (a) changes in worldwide economic and political conditions that impact demand for our products, interest rates and foreign exchange rates; (b) changing priorities or reductions in the U.S. Government defense budget, including those related to Operation Iraqi Freedom, Operation Enduring Freedom and the Overseas Contingency Operations; (c) our ability to perform as anticipated and to control costs under contracts with the U.S. Government; (d) legislative or regulatory actions impacting defense operations; (e) the timing of new product launches and certifications of new products; (f) the efficacy of research and development investments to develop new products (g) the launching of significant new products or programs which could result in unanticipated expenses; and (h) performance issues with key suppliers, subcontractors and business partners.