Defense Dept. `Green Lights' Bell's H-1 Upgrade Program.

Business Editors

FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 23, 2003

Bell Helicopter's H-1 Upgrade Program received a major boost today with a big "thumbs up" from the Defense Acquisition Board (DAB). The H-1 Upgrade is a multi-billion dollar program to remanufacture the US Marine Corps fleet of 180 AH-1W SuperCobra and 100 UH-1N Huey utility helicopters to an advanced configuration featuring common engines and flight dynamics. The decision specifically gives the approval for Bell to remanufacture six UH-1N and three AH-1W helicopters to the UH-1Y and AH-1Z standard during FY04. A second LRIP (Low Rate Initial Production) lot, currently scheduled to be another six Hueys and three SuperCobras, should enter production in FY05.

Upon completion, the AH-1W will become the AH-1Z and the UH-1N will become the UH-1Y. Currently three AH-1Z SuperCobras and two UH-1Y helicopters are in flight text at the Naval Air Station, Patuxent River, Md. So far the AH-1Z fleet has achieved approximately 900 flight hours with a top airspeed of 220 knots. The two UH-1Y helicopters have accumulated approximately 500 flight hours with a top speed of 196 knots.

"We couldn't be more delighted," exclaimed Bell CEO Mike Redenbaugh, who acknowledged "the DAB's decision to proceed with the program is a recognition of the great work of hundreds of Bell employees both here in Texas and at Patuxent River working on the H-1 side-by-side with the Marines."

The H-1 upgrades include an enormous amount of commonality between the two aircraft including engines (GE-T700 engines), four blade all composite, hingeless, bearingless main rotor system and tail rotor, identical drive trains, hydraulics and electrical distribution systems. By utilizing common systems the cost of the logistics support process for the two helicopters will be dramatically reduced and will allow for vastly improved shipboard operability. Far less critical shipboard space will be needed to store spare parts and support equipment to support the two helicopters comprising the H-1 Upgrade Program.

The H-1 Upgrade Program will result in 280 essentially new aircraft for the US Marine Corps to operate beyond 2020. These will be "zero-time" airframes remanufactured with the latest technology, enabling a U.S. Government approved 10,000 hour life-span. The H-1 Upgrade Program increases the speed, range, maneuverability and lift capability of both aircraft. The savings in maintenance staffing and training, ground handling and support equipment, and spare parts inventories equates to billions of dollars over the life of the program.

Current advanced technology will provide the H-1 Fleet with increased battlefield survivability and greater mission success with fewer combat losses. In addition the crashworthiness of both the UH-1Y and the AH-1Z will be improved.

Bell is a subsidiary of Textron Inc., (NYSE:TXT) an $11 billion multi-industry company with 49,000 employees in 40 countries. The company leverages its global network of businesses to provide customers with innovative solutions and services in industries such as aircraft, fastening systems, industrial products and components and finance. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.