Textron and GEC Divisions Awarded $1.5 Billion Dollar Program to Manufacture Ultralightweight Field Howitzer.

NEW ORLEANS--(BUSINESS WIRE)-- March 17, 1997--Textron Marine & Land Systems (TM&LS) and Vickers Shipbuilding and Engineering Limited (VSEL), today announced the receipt of a Department of the Navy contract for Engineering, Manufacturing and Development Phase (EMD) and options for initial production of the Ultralightweight Field Howitzer. The value of today's contract is $39.6M, plus production options valued at $110M for a total contract value of $150.8M. The total program value could ultimately exceed $1.5 billion.

TM&LS President John J. Kelly said, "During this collaboration, Textron Marine & Land Systems and VSEL have developed a special relationship. We are pleased that our teamwork has led to a contract that will continue this association. This program has brought to TM&LS employees future stability. When in production, it is expected to secure 225 New Orleans jobs for the next decade. I would also like to thank members of the Louisiana Congressional delegation, especially Representative Bob Livingston, Senator John Breaux and Representative Bill Jefferson, for their interest and support for this major defense program," Kelly said. "Not only will the economy of Louisiana benefit from this contract award, but, more important, our young Marines and Soldiers will receive a modern, reliable, durable, highly mobile weapon system with which to enter the 21st century."

The Ultralightweight Field Howitzer (UFH) will replace the twenty-five year old M-198 155mm towed howitzer currently used by the U.S. Marine Corps and the U.S. Army. This new weapon will provide close and deep fire support and interdiction fire as a direct support weapon for the Marine Corps. The Army's Airborne, Air Assault and Light Forces will use the UFH as a general support weapon.

Under the terms of the contract, there will be a three year funded EMD, during which TM&LS, as the prime contractor, will assure production, delivery and support of eight lightweight 155mm towed howitzers for further government testing. After completing the EMD, it is expected that full-scale production will be initiated for more than 190 units. The total United States Marine Corps and Army requirement is expected to exceed 1,300 units.

Production of the first Ultralightweight Field Howitzer will begin immediately. Delivery of the first EMD gun is scheduled for September of 1998 with deliveries of the remaining seven ending in May of 1999. Fielding of full production models to the Marine Corps will commence in the year 2000. Textron Marine & Land Systems will manufacture the full production guns at their main manufacturing facility located in New Orleans, LA.

The UFH is the world's first 155mm howitzer weighing under 9,000 pounds and the first to be constructed principally of titanium alloy, which is key to maintaining structural strength while meeting a strict light weight requirement. The UFH is air transportable by medium lift or heavy lift helicopters, the V-22 tilt-rotor aircraft, and all U.S. Air Force transport aircraft. The UFH offers greater ground mobility and improved reaction times compared to the 16,000 pound M198 Howitzer it will replace. It also offers significant advantages in the areas of automatic breech opening, automatic primer feed, crew ergonomics, stability and safety.

The UFH is compatible with all U.S. standard and developmental 155mm munitions and propelling charges. Maximum range using unassisted projectiles is 15 miles (24.7 kilometers) and with assisted projectiles of 18 miles (30 kilometers). The UFH is a fully proven and tested weapon system and was selected over two other competitors following intense developmental testing and an operational assessment.

In addition to filling U.S. requirements, this contract forms the basis for a cooperative program between the U.S. Government and the British Ministry of Defense, which has a requirement for a rapidly deployable howitzer. Because of the shift in focus to highly mobile, lighter forces, many allied nations are expected to have a strong interest in this premiere, lightweight artillery system.

Vickers Shipbuilding & Engineering Limited, a member of the United Kingdom's GEC plc group of companies, is a world leader in both marine and land systems with emphasis on the design and construction of modern highly sophisticated nuclear submarines, surface ships, and large caliber cannon artillery weapon systems including the towed 155mm FH-70, the newly fielded AS90 self-propelled 155mm howitzer and the UFH.

A U.S. leader in the design and construction of advanced technology air cushion vehicles, surface effect ships, high performance search and rescue vessels, combat vehicles, turrets and advanced suspension systems, Textron Marine & Land Systems, Division of Textron Inc., serves both military and commercial interests domestically and internationally. TM&LS is headquartered in New Orleans, LA. TM&LS has products operating in over 35 countries and maintains a significant commitment to independent research and development.

Textron Inc. (NYSE: TXT) is a $9.3 billion, global, multi-industry company with market-leading operations in Aircraft, Automotive, Industrial and Finance.

CONTACT: Textron Inc.

Susan Gillette

401/457-2354