Esterline Ends Year on High Note

BELLEVUE, WA--(Marketwire - December 6, 2007) - Esterline Corporation (NYSE: ESL) (www.esterline.com), a leading specialty manufacturer serving aerospace/defense markets, today reported fourth quarter (ended October 26) net earnings of $20.9 million, or $.78 per diluted share, on sales of $370.7 million. In the same period last year, net earnings were $18.4 million, or $.71 per diluted share, on $270.3 million sales.

Full-year 2007 net earnings were $92.3 million, or $3.52 per diluted share, on sales of $1.27 billion, compared with net earnings of $55.6 million, or $2.15 per diluted share, on $972.3 million sales last year. Fiscal years 2007 and 2006 included insurance recoveries of $37.5 million and $4.9 million, respectively. Excluding the insurance recoveries, full-year operating earnings were up 24% over last year, and net earnings were up 27%.

Robert W. Cremin, Esterline CEO, said the performance "...capped a transformational year for Esterline. The March acquisition of Canada-based CMC Electronics not only helped boost revenues by more than 30% over last year, it was an important move up the value chain for us." He said that "...adding high technology avionic systems integration capability to our market leading toolkit of component solutions significantly increased the value we bring to our customers."

Cremin said that as the company has expanded its critical mass organically (nearly 15% in 2007) and through strategic acquisitions like CMC, "...we've been able to surge R&D and are now positioned to benefit as these efforts begin to bear fruit." Cremin said that Esterline's R&D spending as a percent of sales peaked in 2007 at 5.6%, compared with 5.4% in 2006. Cremin said he expects 2008 R&D expense to be about 5% of sales. He also explained that although CMC's gross level of R&D spending as recorded under U.S. GAAP will drive the rate higher than Esterline's historical average of about 4%, "...this difference is substantially offset by R&D tax credits."

In mid-October 2007, the company issued 3.45 million shares of common stock. Cremin said that the "...proceeds from the stock offering along with strong cash generation enabled us to pay down a significant portion of our outstanding debt and repositioned Esterline's balance sheet to pre-CMC ratios." In 2007, the company generated EBITDA* of $203 million, an increase of 49% from 2006, and cash flow from operations of $122 million. The company closed the year with debt of $476 million, a debt-to-EBITDA coverage ratio of 2.3 times and a debt-to-equity ratio of 42%. Cremin said, "...these metrics provide us with optimal flexibility to take advantage of changes in capital markets."

Cremin said he anticipates another solid year ahead for Esterline, and provided a 2008 EPS guidance range of $3.00 to $3.20 per share. He said, "...excluding the insurance effect on 2007 EPS, the mid-point of our 2008 guidance is a respectable 23% improvement over last year." He said the company's order books are strong and backlog at year-end was $985 million compared with $654 million last year. He pointed to robust industry fundamentals saying, "...whether you're talking commercial or military aviation, it's hard to find a platform that Esterline is not on, and our content per aircraft is increasing rapidly."

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will," or the negative of such terms, or other comparable terminology. These forward-looking statements are only predictions based on the current intent and expectations of the management of Esterline, are not guarantees of future performance or actions, and involve risks and uncertainties that are difficult to predict and may cause Esterline's or its industry's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Esterline's actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements due to risks detailed in Esterline's public filings with the Securities and Exchange Commission.

* EBITDA for fiscal 2007 of $202,937,000 equals operating earnings of $147,977,000 plus depreciation and amortization of $54,960,000. EBITDA is a measurement not calculated in accordance with GAAP. We define EBITDA as operating earnings plus depreciation and amortization (excluding amortization of debt issuance costs). We do not intend EBITDA to represent cash flows from operations or any other items calculated in accordance with GAAP, or as an indicator of Esterline's operating performance. Our definition of EBITDA may not be comparable with EBITDA as defined by other companies. We believe EBITDA is commonly used by financial analysts and others in the aerospace and defense industries and thus provides useful information to investors. Our management and certain financial creditors use EBITDA as one measure of our leverage capacity and debt servicing ability, and is shown here with respect to Esterline for comparative purposes. EBITDA is not necessarily indicative of amounts that may be available for discretionary uses by us.

Esterline Reports Fourth Quarter Earnings

ESTERLINE TECHNOLOGIES CORPORATION
Consolidated Statement of Operations
In thousands, except per share amounts


                                 Three months ended    Fiscal year ended
                                 Oct 26,    Oct 27,    Oct 26,    Oct 27,
                                   2007      2006       2007       2006
                                ---------  ---------  ---------  ---------
                               (unaudited)(unaudited)(unaudited)
Segment Sales
   Avionics & Controls          $ 149,189  $  77,514  $ 454,520  $ 283,011
   Sensors & Systems              101,745     91,938    383,477    333,257
   Advanced Materials             119,721    100,821    428,558    356,007
                                ---------  ---------  ---------  ---------
Net Sales                         370,655    270,273  1,266,555    972,275

Cost of Sales                     253,203    188,372    876,030    671,419
                                ---------  ---------  ---------  ---------
                                  117,452     81,901    390,525    300,856
Expenses
   Selling, general and
    administrative                 61,223     40,415    209,460    159,624
   Research, development and
    engineering                    20,946     14,860     70,531     52,612
                                ---------  ---------  ---------  ---------
   Total Expenses                  82,169     55,275    279,991    212,236

Other
   Other (income) expense              --        (45)        24       (490)
   Insurance recovery                (153)    (4,104)   (37,467)    (4,890)
                                ---------  ---------  ---------  ---------
   Total Other                       (153)    (4,149)   (37,443)    (5,380)
                                ---------  ---------  ---------  ---------

Operating Earnings                 35,436     30,775    147,977     94,000

   Interest income                 (1,271)      (392)    (3,381)    (2,642)
   Interest expense                10,260      5,409     35,302     21,290
   Loss on extinguishment of debt   1,100         --      1,100      2,156
                                ---------  ---------  ---------  ---------
Other Expense, Net                 10,089      5,017     33,021     20,804
                                ---------  ---------  ---------  ---------

Income Before Income Taxes         25,347     25,758    114,956     73,196
Income Tax Expense                  4,423      7,277     22,519     16,716
                                ---------  ---------  ---------  ---------
Income Before Minority Interest    20,924     18,481     92,437     56,480
Minority Interest                     (36)      (112)      (153)      (865)
                                ---------  ---------  ---------  ---------

Net Earnings                    $  20,888  $  18,369  $  92,284  $  55,615
                                =========  =========  =========  =========

Earnings Per Share:
   Basic                        $     .79  $     .72  $    3.57  $    2.19
   Diluted                      $     .78  $     .71  $    3.52  $    2.15


Weighted Average Number of
 Shares Outstanding--Basic          26,484     25,482     25,824     25,413

Weighted Average Number of
 Shares Outstanding--Diluted        26,940     25,845     26,252     25,818



Esterline Reports Fourth Quarter Earnings

Consolidated Balance Sheet
In thousands                                        Oct 26,      Oct 27,
                                                     2007         2006
                                                  -----------  -----------
                                                  (unaudited)
Assets
Current Assets
   Cash and cash equivalents                      $   147,069  $    42,638
   Cash in escrow                                          --        4,409
   Accounts receivable, net                           262,087      191,737
   Inventories                                        258,176      185,846
   Income tax refundable                               11,580        6,231
   Deferred income tax benefits                        37,830       27,932
   Prepaid expenses                                    13,256        9,545
                                                  -----------  -----------
      Total Current Assets                            729,998      468,338

Property, Plant and Equipment, Net                    217,421      170,442

Other Non-Current Assets
   Goodwill                                           656,865      366,155
   Intangibles, net                                   365,317      241,657
   Debt issuance costs, net                             9,192        4,469
   Deferred income tax benefits                        43,670       14,790
   Other assets                                        29,715       24,600
                                                  -----------  -----------
                                                  $ 2,052,178  $ 1,290,451
                                                  ===========  ===========

Liabilities and Shareholders' Equity
Current Liabilities
   Accounts payable                               $    90,257  $    62,693
   Accrued liabilities                                186,761      121,419
   Credit facilities                                    8,634        8,075
   Current maturities of long-term debt                12,166        5,538
   Federal and foreign income taxes                    11,247        2,874
                                                  -----------  -----------
      Total Current Liabilities                       309,065      200,599

Long-Term Liabilities
   Long-term debt, net of current maturities          455,002      282,307
   Deferred income taxes                              123,758       72,349
   Other liabilities                                   39,559       23,629

Commitments and Contingencies                              --           --
Minority Interest                                       2,968        3,578

Shareholders' Equity                                1,121,826      707,989
                                                  -----------  -----------
                                                  $ 2,052,178  $ 1,290,451
                                                  ===========  ===========

Contact Information: Contact: Brian Keogh 425/453-9400