Rockwell Collins, China Eastern Airlines Announce Strategic Agreement; Companies Create Joint Venture; China Eastern Airlines Selects

CEDAR RAPIDS, Iowa (September 30, 2002) - Rockwell Collins International Inc., a subsidiary of Rockwell Collins Inc. (NYSE: COL), and China Eastern Airlines (CEA) have agreed to form a joint venture to provide full repair and maintenance services for commercial air transport avionics and in-flight entertainment (IFE) equipment throughout China.

The joint venture company will be known as Collins Aviation Maintenance Services Shanghai Limited (CAMSS). CAMSS will offer maintenance, repair and overhaul of avionics and IFE equipment manufactured by Rockwell Collins as well as by other original equipment manufacturers and will become operational following its receipt of a required business license.

"This is an exciting day for both Rockwell Collins and China Eastern Airlines. The companies have a strong relationship based on trust and cooperation that will be a strong foundation for the future," stated Harry Gregory, vice president and general manager of Collins Aviation Services. "We enthusiastically look forward to working together in our joint venture to contribute to the operational success of CEA and to grow future business in the People's Republic of China."

"This joint venture for Rockwell Collins and China Eastern Airlines is a milestone for the strategic relationship between both parties. CAMSS will be a center of excellence for the repair and overhaul of avionics and IFE equipment utilizing the best of both companies' experience, superior performance and expertise," said Lin Shao Yong, president of China Eastern Airlines. "Rockwell Collins was selected based upon its outstanding quality of service, turn-around times and engineering capabilities in the aviation industry."

In a separate agreement, China Eastern Airlines selected Rockwell Collins avionics and Programmable Audio and Video Entertainment System (PAVESTM) IFE system for 20 Airbus A320 aircraft. As one of three major airlines in China, CEA has more than 80 aircraft in its worldwide fleet and will increase this fleet size to over 150 aircraft through its planned merger with China Northwest Airlines and China Yunnan Airlines. In addition, CEA has plans to introduce 20 additional A320, 10 737NG and five A340-600 aircraft over the next five years, showing sustainable growth in the air transport industry.

Collins Aviation Services (CAS) has a global network of more than 60 locations that provide repair and overhaul of avionics equipment and IFE equipment. Additional capabilities include repair, on-board services, service parts, training and technical information services.

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