Economic Summit 2003 Outlook Lloyd Fig Newton Vice

Economic Summit 2003 Outlook Lloyd (Fig) Newton Vice President Pratt & Whitney Military Engines Business Development & International Programs January 3, 2003 Hartford Hilton

UTC Corporation

77 Years of History

Pratt & Whitney: Generations of Power y ar Milit Commercial Spa ce

The Power of One

Aerospace Employment in Connecticut 50, 000 25, 000 0 1996 1997 1998 1999 2000 2001

Aerospace Wages in Connecticut $61, 000 $60, 000 $45, 000 $30, 000 $0 AEROSPACE CONNECTICUT AVERAGE & WAGE AVIATION

Aerospace Employment Top 10

Aerospace Employment Growth

Defense Spending Billions of Dollars $378* $355 $290 $318 $267 *President submitted to Congress

Effects on P&W Today The Future F 100 —F-15/F-16 Fighters F 117 for C-17—solid future F 117—C-17 Cargo Transport F 119 for F/A-22 Raptor—operational in 2 years J 52—A-6 Electronic Warfare F 135 for JSF—solid R&D, P&W leadership, milestones TF 33—B-52, KC-135 Bomber and Tanker F 100 for F-15/F-16—continues to be important as F/A-22 and JSF come on line

Global Focus: Key to our Future United States Italy Belgium Netherlands Norway Denmark Great Britain Israel Egypt Australia Pakistan Japan • A-4 Customers • F-111 Customers Argentina • F-16 Customers • C-17 Customers • F-14 Customers Korea Singapore Saudi Arabia • F-15 Customers • EA-6 B Customers Thailand Indonesia Taiwan Portugal Venezuela Jordan Greece

Business Outlook—Manufacturing

P&W Turbine Blades. . . Amazing Facts Near-Sonic Velocity Air Flow 6+ Years 400 hp Per Blade 40, 000 lbs. Tension >1000°F Over Metal Melt Temperature

Pratt & Whitney Here Today. . . Here to Stay