Textron Defense Systems Awarded $2 M Contract for Clean Lightweight Area Weapon (CLAW) Munition

Wilmington, MA – July 2, 2007 - Textron Defense Systems, an operating unit of Textron Systems, a Textron Inc. (NYSE: TXT) company, announced today that it has been awarded a $2 million Concept Refinement Contract from the U.S. Army Aviation Applied Technology Directorate (AATD), Fort Eustis, Virginia for enhancements to the Clean Lightweight Area Weapon (CLAW) munition. This award follows a series of successful arena tests of the CLAW munition prototype.

The CLAW munition was designed and developed by Textron Defense Systems in Wilmington, Massachusetts under the direction of the Airborne Products & Services (AP&S) business line, and funded through the company’s research and development efforts.

This revolution in air-to-ground weapons can be used to engage and defeat multiple soft targets such as dispersed air defense sites, parked aircraft, and support vehicles over a wide area. A single 64 lb CLAW munition has the footprint and effectiveness of a 1000 lb legacy cluster bomb but with clean battlefield features.

The AATD program focuses on CLAW Product Improvements for arming medium and large tactical unmanned aerial vehicles (UAVs). Its light weight allows it to be carried and delivered from various tactical UAVs such as the MQ-12 Warrior, MQ-5 Hunter, MQ-1 Predator and MQ-9 Reaper. CLAW can be delivered from UAVs from high altitude using Textron Defense Systems’ GPS-guided Universal Aerial Delivery Dispenser (U-ADD) system. Other compatible delivery mechanisms are tactical munitions dispensers, guided rocket artillery, and cruise missiles.

Tom Harrington, Textron Defense Systems’ vice president, Aircraft Products & Services, said, “This program is significant in that it allows us to bring forward to the war fighter a smart solution to the unexploded ordinance (UXO) problem with a product that is both highly effective while also being highly reliable. The CLAW munition gives armed UAVs an added capability which they previously did not have– the ability to defeat multiple targets over a wide area. We expect interest in the manned aircraft market to grow as CLAW matures.”

About Textron Systems

Textron Systems Corporation (“Textron Systems”) provides innovative technology solutions to meet the needs of the defense, homeland security and aerospace communities. The company is known for its precision smart weapons, surveillance systems, complex intelligence and communications systems, aircraft control systems, piston engines, specialty marine craft and armored vehicles. Textron Systems is a wholly-owned subsidiary of Avco Corporation. Avco Corporation is wholly-owned subsidiary of Textron Inc. More information is available at www.textronsystems.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.