Textron Names Millman Executive-in-Charge of Lycoming; Details Comprehensive Program for Engine Recalls

Business Wire, Oct 23, 2002

Business Editors

PROVIDENCE, R.I.--(BUSINESS WIRE)--Oct. 23, 2002

Textron Inc. (NYSE: TXT) today announced that Richard Millman, president of Textron Systems Corporation and a highly experienced aerospace executive, has assumed the additional responsibility of executive-in-charge of Textron's Lycoming business unit. Lycoming is the leading manufacturer of piston engines for general aviation aircraft. Millman's appointment is part of a broad-based program to address the issues surrounding recalls currently affecting certain Lycoming engines. Working with Lycoming President Michael Wolf, Millman will oversee all aspects of Lycoming's response to this situation.

"Flight safety is of paramount importance to Lycoming, and Dick Millman knows as much about aerospace design and manufacturing processes as anyone in this business. He is the right leader to take on this critically important assignment on behalf of our customers," said Russ Meyer, president of Textron's Aircraft Sector.

Millman brings a wealth of management and technological experience from his nearly 40-year career in aviation, defense and aerospace businesses at Textron Inc., AVCO Corporation and Mitre Corporation. He is experienced in the direct supply of components and systems to the aviation industry as well as critical control systems for the Space Shuttle, Peacekeeper and other demanding programs. He holds a Bachelor's degree in Electrical Engineering from the Massachusetts Institute of Technology and a Master's degree in Electrical Engineering from Columbia University.

"Flight safety is our top priority," said Millman. "We also are intensely focused on getting pilots and their aircraft back in the air as quickly as possible. Our action plans continue to be fully coordinated with the Federal Aviation Administration (FAA)."

Lycoming discovered metallurgical flaws in crankshafts and crankshaft bolts in certain of its engines. Working closely with the FAA, Lycoming has issued several service bulletins informing customers of the recalls and the plans to replace the affected parts.

Millman's appointment is one element of a comprehensive response to the issues surrounding the recalls:

Enhanced Quality Systems and Procedures

-- Lycoming has initiated a two-fold program to ensure reliability of crankshafts going forward: 1) enhanced process control, and 2) more comprehensive testing. Lycoming is working with the crankshaft supplier under close FAA oversight to improve the crankshaft manufacturing and production processes, including new press forging, new heating techniques, temperature control and temperature monitoring processes. Lycoming is also conducting 100% Scanning Electron Microscope analysis of the crankshafts before installation in the engine.

-- Further improvements include additional reporting and inspection procedures as well as an increase in the number of quality assurance personnel by more than 60 percent. In addition, Lycoming added a director of supplier control, moved the quality assurance function to report directly to the president, and is bolstering its metallurgical staff.

Unprecedented Customer Care Program

-- Lycoming has initiated one of the most extensive Customer Care

programs in general aviation history, earmarking $37 million

to fund these efforts. In addition to repairing and replacing

parts, the program includes alternative transportation;

optional weekly flat-fee payment to defray incidental costs;

remote hangar fees; and an additional 12 month engine warranty

from the date the engine is returned to service.

-- Once new crankshafts are available, 30 FAA-certified overhaul

facilities around the world, including Lycoming's factory and

service center, will ramp up to handle 20-30 engines a day.

Lycoming's factory will have an assembly line devoted to this

project and a staging area that will be dedicated to both

engine inspection and parts flow coordination. Lycoming will

install new crankshafts, bearings and consumables, and will

replace any part that does not meet the company's standards.

Once off the line, each engine will be thoroughly tested.

Lycoming's goal is to complete the program by early in the

second quarter of 2003.

Strengthened Management and Additional Resources

-- In addition to Millman's appointment, Textron has also

provided expertise in inspection, metallurgy, Textron Six

Sigma, program management and other related disciplines.

Lycoming customers who would like more information on the recalls and the Customer Care program are encouraged to visit www.lycoming.textron.com or to call: 800-258-3279.

Lycoming is an operating division of Textron's Avco Corporation subsidiary. 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, industrial components and finance. Textron is known around the world for our 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.