Esterline Reiterates Full-Year Guidance Despite Ongoing Talks With Canadian Government R&D Panel

BELLEVUE, WA, Aug 05 (MARKET WIRE) --
Esterline Corporation (NYSE: ESL) (www.esterline.com), a leading
specialty manufacturer serving aerospace/defense markets, today reported
that terms-and-conditions discussions with the Canadian government
regarding a research and development investment proposal and related
claim under a government assistance program have been deferred through
Parliament's summer recess.

Robert W. Cremin, Esterline CEO, referring to Bombardier's widely reported
launch of its new C-Series family of single-aisle jets, said, "The flurry
of activity surrounding this recent announcement, and Bombardier's related
negotiations with Canada over launch investment, influenced the timing of
Esterline's discussions with Industry Canada's Industrial Technologies
Office's SADI* committee." Cremin said, "...our talks regarding the
proposal are now targeted for September."

Given the change in the timing, Cremin said third quarter earnings per
share, "...should be in the $.55 to $.60 range." More importantly, Cremin
reiterated Esterline's previous full-year earnings per share guidance
range of $3.45 to $3.55, indicating comfort with the upper end of that
range. He said, "...indicators are pointing up for Esterline as our
operations continue to perform ahead of our expectations."

As Esterline previously reported, the level of contributions received from
government agencies, including Industry Canada, affects the company's net
R&D expense. In 2007, the Canadian government amended its technology
contribution program. Esterline, in turn, presented a proposal under the
new plan for funding support of technology programs currently under way.

A conference call is scheduled for later today at 5 p.m. EDT (2 p.m. PDT).
Listeners may access the conference call live over the Internet at
www.esterline.com. The company's regularly scheduled third quarter
conference call will take place on Thursday, August 28, at 5 p.m. EDT (2
p.m. PDT).

* Industry Canada is the Canadian Federal Ministry that manages the
Strategic Aerospace Defense Initiative, or SADI
http://ito.ic.gc.ca/epic/site/ito-oti.nsf/en/h_00022e.html

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.

Contact:
Brian Keogh
425/453-9400

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