BELLEVUE, WA--(Marketwire - December 11, 2008) - Esterline Corporation (NYSE: ESL) (www.esterline.com), a leading specialty manufacturer serving aerospace/defense markets, today reported fiscal 2008 fourth quarter and full-year results for the period ended October 31, 2008. Net income from continuing operations for the quarter was a record $41.4 million, or $1.38 per diluted share, on sales of $404.4 million. For the same period last year, income from continuing operations was $20.5 million, or $.76 per diluted share, on sales of $355.7 million. (Continuing operations exclude results from Esterline's Muirhead Aerospace subsidiary, divested on November 3, 2008.)

For the full year ended October 31, 2008, Esterline reported net earnings from continuing operations of $113.5 million, or $3.80 per diluted share, on sales of $1.48 billion, compared with net earnings from continuing operations of $87.8 million, or $3.34 per diluted share, on $1.21 billion in sales in 2007. Full year 2007 results included an after-tax gain of $26.2 million, or $1.00 per diluted share, due to an insurance recovery.

Robert W. Cremin, Esterline CEO, said, "...with strong organic growth we recorded another solid year, benefiting from improved performance across the board in each of our three operating segments." Cremin said that top-line organic growth was 14% and 17% respectively for the fourth quarter and full year, when compared to same-period 2007 results. He pointed out that fourth quarter earnings were bolstered by the recently strengthening U.S. dollar. Noting that aerospace pricing is primarily denominated in U.S. dollars, Cremin said that with "...nearly half of our manufacturing operations outside the U.S. -- most notably in Canada, France and the U.K. -- the headwind we faced for most of the year has shifted in our favor."

Fourth quarter 2008 research, development and engineering (R&D) expense totaled $18.7 million, or 4.6% of sales, compared with $19.9 million, or 5.6% of sales, in the same quarter a year ago. Full-year 2008 R&D totaled $86.8 million, or 5.9% of sales, compared with $66.9 million, or 5.5% of sales, last year. Cremin noted that the recent downward trend reflects "...a return to more normalized R&D investment following several years of successful efforts to secure Tier 1 positions on a number of major programs that will fly for decades to come." He added that, "...for the hundreds of active aircraft platforms flying today, our total dollar content per aircraft is growing steadily due to our constant technology advancements, new products and market share gains."

Cremin also noted the company's cash generating capability, pointing out that Esterline retired approximately $64 million in term loans and other debt during the year.

Backlog at fiscal year end was $1.1 billion, ahead of last year by nearly 14%. Orders received in the fourth quarter totaled $469.4 million -- up 31% on both a year-over-year and sequential basis. Cremin said he was optimistic about the company's prospects, and estimated full-year 2009 earnings per share from continuing operations to be in the range of $3.70 to $3.90.

Cremin said, "...our core strategy positions us to perform well no matter where we are in a cycle." He pointed to Esterline's diverse product mix, balanced global market position, and underlying entrepreneurial culture as "...key underpinnings of achieving success during difficult market conditions."

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 including its most recent Annual Report on Form 10-K.

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

                              Three months ended      Fiscal year ended
                              Oct 31,     Oct 26,     Oct 31,     Oct 26,
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------
Segment Sales
  Avionics & Controls       $  173,459 $   151,611  $  611,467  $  461,990
  Sensors & Systems             89,987      84,363     384,180     316,485
  Advanced Materials           140,904     119,721     487,525     428,558
                            ----------  ----------  ----------  ----------

Net Sales                      404,350     355,695   1,483,172   1,207,033

Cost of Sales                  263,989     242,595     992,853     833,977
                            ----------  ----------  ----------  ----------
                               140,361     113,100     490,319     373,056
Expenses
  Selling, general and
   administrative               61,200      58,594     239,282     199,825
  Research, development and
   engineering                  18,660      19,883      86,798      66,891
                            ----------  ----------  ----------  ----------
  Total Expenses                79,860      78,477     326,080     266,716

Other
  Other expense                     --          --          86          24
  Insurance recovery                --        (153)         --     (37,467)
                            ----------  ----------  ----------  ----------
  Total Other                       --        (153)         86     (37,443)
                            ----------  ----------  ----------  ----------

Operating Earnings From
 Continuing Operations          60,501      34,776     164,153     143,783

  Interest income               (1,077)     (1,209)     (4,374)     (3,095)
  Interest expense               7,405      10,257      29,922      35,300
  Gain on derivative
   financial instrument             --          --      (1,850)         --
  Loss on extinguishment of
   debt                             --       1,100          --       1,100
                            ----------  ----------  ----------  ----------
Other Expense, Net               6,328      10,148      23,698      33,305
                            ----------  ----------  ----------  ----------

Income From Continuing
 Operations
 Before Income Taxes            54,173      24,628     140,455     110,478
Income Tax Expense              12,582       4,123      26,563      22,563
                            ----------  ----------  ----------  ----------
Income From Continuing
 Operations
 Before Minority Interest       41,591      20,505     113,892      87,915
Minority Interest                 (154)        (36)       (383)       (153)
                            ----------  ----------  ----------  ----------

Income From Continuing
 Operations                     41,437      20,469     113,509      87,762

Income From Discontinued
 Operations, Net of Tax          2,445         419       7,024       4,522
                            ----------  ----------  ----------  ----------


Net Earnings                $   43,882  $   20,888  $  120,533  $   92,284
                            ==========  ==========  ==========  ==========

Earnings Per Share - Basic:
  Continuing Operations     $     1.40  $      .77  $     3.85  $     3.40
  Discontinued Operations          .08         .02         .23         .17
                            ----------  ----------  ----------  ----------

Earnings Per Share - Basic  $     1.48  $      .79  $     4.08  $     3.57
                            ==========  ==========  ==========  ==========

Earnings Per Share - Diluted:
  Continuing Operations     $     1.38  $      .76  $     3.80  $     3.34
  Discontinued Operations          .08         .02         .23         .18
                            ----------  ----------  ----------  ----------

Earnings Per Share -
 Diluted                    $     1.46  $      .78  $     4.03  $     3.52
                            ==========  ==========  ==========  ==========

Weighted Average Number
 of Shares
 Outstanding-Basic              29,635      26,484      29,507      25,824

Weighted Average Number
 of Shares
 Outstanding-Diluted            29,955      26,940      29,908      26,252




Consolidated Balance Sheet (unaudited)
In thousands                              Oct 31,     Oct 26,
                                           2008        2007
                                       -----------  -----------
Assets
Current Assets
  Cash and cash equivalents            $   160,645  $   147,069
  Accounts receivable, net                 297,506      262,087
  Inventories                              261,973      258,176
  Income tax refundable                      5,567       11,580
  Deferred income tax benefits              30,463       37,830
  Prepaid expenses                          13,040       13,256
  Other current assets                         897           --
                                       -----------  -----------
     Total Current Assets                  770,091      729,998

Property, Plant and Equipment, Net         204,462      217,421

Other Non-Current Assets
  Goodwill                                 576,861      656,865
  Intangibles, net                         290,440      365,317
  Debt issuance costs, net                   7,587        9,192
  Deferred income tax benefits              50,040       43,670
  Other assets                               9,601       27,843
                                       -----------  -----------
                                       $ 1,909,082  $ 2,050,306
                                       ===========  ===========
Liabilities and Shareholders' Equity
Current Liabilities
  Accounts payable                     $    89,807  $    90,257
  Accrued liabilities                      210,422      187,596
  Credit facilities                          5,171        8,634
  Current maturities of long-term debt       8,388       12,166
  Federal and foreign income taxes           4,442       11,247
                                       -----------  -----------
     Total Current Liabilities             318,230      309,900

Long-Term Liabilities
  Long-term debt, net of current
   maturities                              388,248      455,002
  Deferred income taxes                     87,699      123,758
  Other liabilities                         85,767       36,852

Commitments and Contingencies                   --           --
Minority Interest                            2,797        2,968

Shareholders' Equity                     1,026,341    1,121,826
                                       -----------  -----------
                                       $ 1,909,082  $ 2,050,306
                                       ===========  ===========