Rockwell Collins Reports Second Quarter Fiscal Year 2008 Earnings Per Share of $1.03 on Sales of $1.186 Billion; Fiscal Year 2008 Earnings Per Share Guidance Range Increased to $3.95 to $4.05

Business Wire, April 24, 2008

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Note: The company operates on a 52/53 week fiscal year with quarterly reporting periods ending on the Friday closest to the last calendar day of the quarter. For ease of presentation, March 31 and September 30 are utilized consistently throughout this press release to represent the period end date.

(1) The $3 million favorable restructuring adjustment in the second quarter of fiscal year 2007 was principally due to lower than expected employee separation costs related to the business realignment and facility rationalization actions announced in the fourth quarter of fiscal year 2006.

(2) The company's effective income tax rate for the second quarter of fiscal year 2008 was 27.6% compared to 33.3% for the second quarter of fiscal year 2007. The lower effective income tax rate in the current year second quarter was primarily due to the recognition of an approximate 7 percentage point discrete tax benefit related to the resolution of certain tax matters partially offset by the recognition of lower research and development tax credits due to the December 31, 2007 expiration of Federal Research and Development Tax Credit legislation.

(3) The company's effective income tax rate for the first six months of fiscal year 2008 was 30.6% compared to 30.1% for the same period a year ago. The effective income tax rate for the first six months of fiscal year 2008 includes an approximate 3.5 percentage point benefit related to the favorable resolution of certain tax matters in the second quarter, partially offset by the recognition of lower research and development tax credits. The effective income tax rate for the first six months of fiscal year 2007 includes an approximate 3 percentage point benefit related to the first quarter retroactive recognition of research and development tax credits attributable to the period from January 1, 2006 to September 30, 2006 as legislation was enacted during the first quarter of fiscal year 2007 that extended the availability of R&D Tax Credits from January 1, 2006 through December 31, 2007.

The following tables summarize the sales of Commercial Systems and Government Systems by product category as well as Commercial Systems' sales by type of product or service for the three and six months ended March 31, 2008 and 2007 (unaudited, in millions):

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