Rockwell Collins announces changes to pension plans

CEDAR RAPIDS, Iowa (August 07, 2003) - Rockwell Collins, Inc. (NYSE: COL) announced today that its U.S. qualified and non-qualified defined benefit pension plans were amended to no longer accrue benefits for salary increases and service rendered after September 30, 2006. Effective October 1, 2006 the company will expand its existing defined contribution savings plan to include an additional company contribution. This amendment will affect all of the company's domestic pension plans covering salaried and hourly employees not covered by collective bargaining agreements.

The company is also planning to make an additional $200 million contribution to the defined benefit pension plans this calendar year which were under funded by approximately $800 million at June 30, 2003.

If the company had not taken these actions, pension expense for fiscal year 2004 would have increased to approximately $83 million from $20 million in fiscal year 2003. As a result of the changes to the pension plans and the $200 million contribution, pension expense will be reduced to approximately $32 million for fiscal year 2004, assuming a 6% discount rate and an 8.75% return on plan assets.

This press release contains statements (including certain projections and business forecasts) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to changes in the discount rate, investment return on plan assets being different than our assumed rate of return, actuarial gains and losses resulting from actual experience being different from our demographic assumptions, including retirement age, mortality, turnover, and rate of salary increases, cash available to fund the defined benefit pension plans as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof and the company assumes no obligation to update any forward-looking statement.

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