Textron Financial Sells $120 Million Media Finance Portfolio To Foothill Capital Corporation and Wells Fargo Bank, N.A

Business Wire, Dec 27, 2002

Business Editors

PROVIDENCE, R.I.--(BUSINESS WIRE)--Dec. 27, 2002

Consistent with its strategy to divest non-core assets, Textron Financial, a unit of Textron Inc. (NYSE:TXT), today announced that it has sold certain loans in its Media Finance portfolio to Foothill Capital Corporation and Wells Fargo Bank, N.A., both units of Wells Fargo and Company (NYSE: WFC). The sale includes approximately $120 million in loans. Terms of the transaction were not disclosed.

The Media Finance division provides loans to small and middle-market businesses in the radio, TV, cable TV, outdoor advertising and publishing industries.

"This sale is part of our strategy to dispose of certain assets to allow Textron Financial to focus on our core businesses and improve our overall profitability," said Jay Carter, Textron Financial president and chief operating officer.

Textron Financial is a diversified commercial finance company with $9.5 billion of managed and serviced finance receivables. It has core finance businesses in Aircraft Finance, Asset-based Lending, Distribution Finance, Golf Finance, Resort Finance and Structured Capital. Textron Financial also provides financing programs for products manufactured by its parent company, Textron Inc. Additional information about the company is available at www.textronfinancial.com.

Textron Inc. is a $12 billion multi-industry company with more than 51,000 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.

Forward-looking Information: Certain statements in this release and other oral and written statements made by Textron from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. 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 the following: (a) the extent to which Textron is able to achieve savings from its restructuring plans, (b) changes in worldwide economic and political conditions that impact interest and foreign exchange rates, (c) the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers, (d) government funding and program approvals affecting products being developed or sold under government programs, (e) cost and delivery performance under various program and development contracts, (f) the adequacy of cost estimates for various customer care programs including servicing warranties, (g) successful implementation of supply chain and other cost reduction programs, (h) the timing of certifications of new aircraft products, (i) the occurrence of further downturns in customer markets to which Textron products are sold or supplied, (j) Textron's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers, (k) the availability and cost of insurance, (l) pension plan income falling below current forecasts, (m) Textron Financial's ability to maintain credit quality, control costs and sell or liquidate certain assets; and (n) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.