Tyco Electronics Reports Strong Third Quarter Results

- Net Sales Increased 19 Percent to $3.9 Billion; Organic Sales Growth of 11 Percent

- Earnings Per Share (EPS) From Continuing Operations of $0.66 on a GAAP Basis; Adjusted EPS of $0.70, an Increase of 43 Percent Over Prior Year

- Income From Operations of $537 Million; Adjusted Operating Income of $560 Million, an Increase of 22 Percent

- Company Now Expects 2008 Adjusted EPS From Continuing Operations of $2.63 to $2.65, an Increase of 23 Percent to 24 Percent Over Prior Year

- Board of Directors Authorizes a $750 Million Increase to Share Repurchase Program, Bringing Total Authorization to $2.0 Billion

PRNewswire-FirstCall
PEMBROKE, Bermuda
(BSX:TEL)
Jul 30, 2008

PEMBROKE, Bermuda, July 30 /PRNewswire-FirstCall/ -- Tyco Electronics Ltd. (NYSE: TEL)(BSX: TEL) today reported net sales of $3.9 billion for the fiscal third quarter ended June 27, 2008, an increase of 19 percent over the prior- year period. Excluding currency effects, organic sales growth was 11 percent. GAAP diluted earnings per share (EPS) from continuing operations were $0.66 for the quarter, compared to a loss of $1.88 in the prior-year period. Included in EPS from continuing operations were $0.04 of net charges -- comprised of $0.02 per share of restructuring costs and a $0.02 per share charge related to the company's portion of a Tyco International securities litigation settlement. This compares to $2.37 per share of charges in the prior-year quarter. Adjusted EPS from continuing operations were $0.70 in the quarter, an increase of 43 percent over last year's adjusted EPS of $0.49.

"Since we became an independent company one year ago, we've delivered four quarters of solid results," said Tyco Electronics Chief Executive Officer Tom Lynch. "In the third quarter, we continued to benefit from the breadth of our business, which enabled us to grow 11 percent organically. This growth, coupled with improved operating leverage in our Electronic Components segment and a favorable sales mix in our Undersea and Wireless segments, resulted in a 22 percent increase in operating income."

Organic Sales Growth, Adjusted Operating Income, Adjusted EPS, Adjusted Operating Margin and Free Cash Flow are all non-GAAP financial measures and are described at the end of this press release. For a reconciliation of these non-GAAP measures, see the attached tables. All dollar amounts are pre-tax and stated in millions. All comparisons are to the quarter ended June 29, 2007 unless otherwise indicated.

  ($ in millions)       June 27, 2008   June 29, 2007   $ Change   % Change

  Net Sales                  $3,908         $3,292        $616         19%
  Operating Income/
   (Loss)                      $537          $(507)     $1,044         NM
  Restructuring-Related
   Costs                       $(16)          $(25)
  Other Items, Net              $(7)         $(941)
  Adjusted Operating
   Income                      $560           $459        $101         22%
  Operating Margin            13.7%             NM
  Adjusted Operating Margin   14.3%          13.9%

GAAP operating income was $537 million, compared to an operating loss of $507 million in the prior-year period. The operating margin on a GAAP basis was 13.7 percent. Included in the current quarter operating income was a $7 million net charge related to the company's portion of a Tyco International securities litigation settlement and $16 million of restructuring costs. Included in prior-year operating income were $25 million of restructuring costs, $50 million of separation-related costs and $891 million of costs related to the company's share of Tyco International's securities class action litigation settlement. Excluding these items in both periods, adjusted operating income was $560 million compared to $459 million a year ago, an increase of 22 percent. The adjusted operating margin was 14.3 percent, compared to 13.9 percent a year ago, primarily reflecting the benefit of higher sales volumes, productivity improvements in the Electronic Components segment, and a favorable sales mix in the Undersea Telecommunications and Wireless Systems segments.

CASH FLOW

Free cash flow was $283 million in the quarter, a decrease of 13 percent from the prior-year quarter. Higher income levels compared to the prior-year quarter were more than offset by a decrease in deferred revenue and the timing of interest payments.

OTHER ITEMS

-- During the quarter, Tyco Electronics announced that it entered into a definitive agreement to sell its Radio Frequency Components and Subsystem business for $425 million in cash. On July 28, Tyco Electronics signed a definitive agreement to sell its automotive radar sensors business for $42 million in cash. The results of both businesses were previously reported as discontinued operations.

-- Tyco Electronics' Board of Directors has authorized a $750 million increase in the company's share repurchase program. This brings the total share repurchase program authorization to $2.0 billion.

ORDERS

Total company orders grew 28 percent compared to the prior year. On an organic basis, excluding the effects of currency translation, orders grew 20 percent and the book-to-bill ratio was 1.07. Excluding the company's Undersea Telecommunications and Wireless Systems segments, which are project-oriented businesses with uneven order patterns, orders grew 13 percent overall and 5 percent organically in the quarter, and the book-to-bill ratio was 1.00.

FISCAL 2008 OUTLOOK

The company now expects adjusted EPS from continuing operations of $2.63 to $2.65 for the full fiscal year 2008, compared to $2.14 in the prior year -- an increase of 23 to 24 percent. This compares to the company's prior outlook of $2.60 to $2.66 per share. The company continues to expect restructuring- related costs of approximately $130 million ($0.17 per share) for the full year. The company further expects full-year sales growth of 14 to 16 percent with organic sales growth of 7 to 9 percent. This outlook assumes stable foreign exchange rates and raw material prices for the remainder of the fiscal year and excludes the one-time $1.15 per share benefit related to the company's tax sharing agreement from the adoption of FIN 48.

For the fourth quarter of fiscal 2008, the company expects sales growth of 6 to 8 percent over prior-year sales of $3.5 billion, with organic sales growth of 1 to 2 percent. The company further expects diluted EPS from continuing operations of $0.56 to $0.58, which includes restructuring costs of approximately $0.09 per share. Adjusted EPS from continuing operations are expected to be $0.65 to $0.67, an increase of 12 to 16 percent over the prior- year quarter. This outlook assumes a 35 percent tax rate and Other Income of approximately $10 to $15 million.

"In the fourth quarter, we again expect double-digit EPS growth and solid cash flow," Lynch said. "Our organic growth outlook reflects some recent softening of order rates in the automotive and telecom service provider markets. We continue to expect solid growth in the majority of our industrial and infrastructure businesses."

SEGMENT RESULTS

Tyco Electronics is comprised of four reporting segments: Electronic Components, Network Solutions, Undersea Telecommunications and Wireless Systems.

Electronic Components

The Electronic Components segment is one of the world's largest suppliers of passive electronic components, including connectors and interconnect systems, relays, switches, circuit protection devices, touchscreens, sensors, and wire and cable.

  ($ in millions)               June 27, June 29,   $       %     Organic
                                  2008    2007    Change  Change   Growth

  Net Sales                      $2,930  $2,551    $379      15%     6%
  Operating Income                 $417    $314    $103      33%
  Restructuring-Related Costs      $(11)   $(18)
  Other Items                        $0    $(20)
  Adjusted Operating Income        $428    $352     $76      22%
  Operating Margin                 14.2%   12.3%
  Adjusted Operating Margin        14.6%   13.8%

Sales in the segment grew 15 percent year over year, or 6 percent organically. On an organic basis, strong growth in industrial (+23 percent), communications (+10 percent), automotive (+7 percent) and aerospace and defense (+7 percent) markets was partially offset by lower growth in the appliance (+2 percent) market and sales declines in the computer (-2 percent) and consumer electronics (-6 percent) markets. In automotive, growth of 12 percent in markets outside North America more than offset an 18 percent decline in North America.

Operating income increased by $103 million and adjusted operating income grew $76 million. The adjusted operating margin increased due to higher volumes and productivity improvements, which more than offset increased raw material costs. Restructuring costs in the quarter were $11 million, compared to $18 million of restructuring and $20 million of separation-related costs in the prior-year quarter.

Network Solutions

The Network Solutions segment is one of the world's largest suppliers of infrastructure components and systems for the communication service provider, building networks and energy markets.

  ($ in millions)          June 27,   June 29,     $       %      Organic
                             2008       2007    Change   Change    Growth

  Net Sales                  $573       $500     $73      15%        6%
  Operating Income            $66        $72     $(6)     (8)%
  Restructuring-Related
   Costs                      $(4)       $(4)
  Other Items                  $0        $(3)
  Adjusted Operating Income   $70        $79     $(9)    (11)%
  Operating Margin           11.5%      14.4%
  Adjusted Operating Margin  12.2%      15.8%

Segment sales grew 15 percent compared to the prior-year quarter, or 6 percent organically. On an organic basis, sales to the building networks and energy markets grew 15 percent and 5 percent respectively. Sales to the communication service provider market were essentially flat, with strong growth in North America offset by the continuation of slower network investment by certain European telecommunications carriers.

Operating income decreased by $6 million and adjusted operating income decreased by $9 million. The decrease in the adjusted operating margin primarily relates to a lower-margin sales mix and lower productivity levels. Restructuring costs in the quarter were $4 million, compared to $4 million of restructuring and $3 million of separation-related costs in the prior-year quarter.

Undersea Telecommunications

The company's Undersea Telecommunications segment is a world leader in developing, manufacturing, installing and maintaining the world's most advanced fiber optic undersea networks.

  ($ in millions)             June 27, June 29,    $        %      Organic
                                2008     2007    Change   Change    Growth

  Net Sales                     $278     $154     $124     81%        81%
  Operating Income               $39      $16      $23    144%
  Restructuring-Related Costs    $(1)     $(2)
  Other Items                     $0      $(1)
  Adjusted Operating Income      $40      $19      $21    111%
  Operating Margin              14.0%    10.4%
  Adjusted Operating Margin     14.4%    12.3%

Sales in the segment grew 81 percent organically versus the prior year, due to continued investment in undersea fiber optic network capacity, primarily in emerging markets. Adjusted operating income increased $21 million and the adjusted operating margin increased to 14.4 percent, driven by higher volumes and a favorable project mix. Restructuring-related costs in the quarter were $1 million, compared to $2 million of restructuring and $1 million of separation-related costs in the prior-year quarter.

Wireless Systems

The Wireless Systems segment is a leading innovator of wireless technology for critical communications.

  ($ in millions)           June 27, June 29,   $         %      Organic
                              2008     2007   Change    Change    Growth

  Net Sales                   $127      $87    $40       46%        43%
  Operating Income             $22       $7    $15      214%
  Restructuring-Related Costs   $0      $(1)
  Other Items                   $0      $(1)
  Adjusted Operating Income    $22       $9    $13      144%
  Operating Margin            17.3%     8.0%
  Adjusted Operating Margin   17.3%    10.3%

Sales in the segment grew $40 million versus the prior year, primarily due to increased radio sales related to the federally-mandated re-banding efforts of a customer. Adjusted operating income increased $13 million due to higher sales volumes and a favorable sales mix. There were no Other Items in the quarter, compared to $1 million of restructuring and $1 million of separation- related costs in the prior-year quarter.

ABOUT TYCO ELECTRONICS

Tyco Electronics Ltd. is a leading global provider of engineered electronic components, network solutions, undersea telecommunication systems and wireless systems, with 2007 sales of $13.0 billion to customers in more than 150 countries. We design, manufacture and market products for customers in industries from automotive, appliance and aerospace and defense to telecommunications, computers and consumer electronics. With over 7,000 engineers and worldwide manufacturing, sales and customer service capabilities, Tyco Electronics' commitment is our customers' advantage. More information on Tyco Electronics can be found at http://www.tycoelectronics.com/.

CONFERENCE CALL AND WEBCAST

The company will hold a conference call for investors today beginning at 8:30 a.m. EDT. The call can be accessed in three ways:

-- At Tyco Electronics' website: http://investors.tycoelectronics.com/.

-- By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the telephone dial-in number in the United States is (800) 230-1092. The telephone dial-in number for participants outside the United States is (651) 291-0618.

-- An audio replay of the conference call will be available beginning at 10:30 a.m. on July 30, 2008 and ending at 11:59 p.m. on August 6, 2008. The dial-in number for participants in the United States is (800) 475-6701. For participants outside the United States, the replay dial-in number is (320) 365-3844. The replay access code for all callers is 942723.

NON-GAAP MEASURES

"Organic Sales Growth," "Adjusted Operating Income," "Adjusted Earnings Per Share," "Adjusted Operating Margin," and "Free Cash Flow" (FCF) are non- GAAP measures and should not be considered replacements for GAAP results.

"Organic Sales Growth" is a useful measure used by the company to measure the underlying results and trends in the business. The difference between reported net sales growth (the most comparable GAAP measure) and Organic Sales Growth (the non-GAAP measure) consists of the impact from foreign currency, acquisitions and divestitures. Organic Sales Growth is a useful measure of the company's performance because it excludes items that: i) are not completely under management's control, such as the impact of foreign currency exchange; or ii) do not reflect the underlying growth of the company, such as acquisition and divestiture activity. It is also a component of the company's compensation programs. The limitation of this measure is that it excludes items that have an impact on the company's sales. This limitation is best addressed by using organic sales growth in combination with the GAAP numbers. See the accompanying tables to this press release for the reconciliation presenting the components of Organic Sales Growth.

The company has presented its operating income before unusual items including costs related to the separation, legal settlements, restructuring costs and other income or charges ("Adjusted Operating Income"). The company utilizes Adjusted Operating Income to assess segment level core operating performance and to provide insight to management in evaluating segment operating plan execution and underlying market conditions. It is also a significant component in the company's incentive compensation plans. Adjusted Operating Income is a useful measure for investors because it better reflects the company's underlying operating results, trends and the comparability of these results between periods. The difference between Adjusted Operating Income and operating income (the most comparable GAAP measure) consists of the impact of charges related to litigation settlement costs, separation-related costs and restructuring costs and other income or charges that may mask the underlying operating results and/or business trends. The limitation of this measure is that it excludes the financial impact of items that would otherwise either increase or decrease the company's reported operating income. This limitation is best addressed by using Adjusted Operating Income in combination with operating income (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.

The company has presented adjusted diluted earnings per share, which is earnings per share from continuing operations before unusual items, including costs related to the separation, legal settlements, restructuring costs, loss on retirement of debt and other income or charges ("Adjusted Earnings Per Share"). The company presents Adjusted Earnings Per Share because we believe that it is appropriate for investors to consider results excluding these items in addition to our results in accordance with GAAP. We believe such a measure provides a picture of our results that is more comparable among periods since it excludes the impact of unusual items, which may recur occasionally, but tend to be irregular as to timing, thereby making comparisons between periods more difficult. This limitation is best addressed by using Adjusted Earnings Per Share in combination with earnings per share (the most comparable GAAP measure) in order to better understand the amounts, character and impact of any increase or decrease on reported results.

The company has presented its operating margin before unusual items including costs related to the separation, legal settlements, restructuring costs and other income or charges ("Adjusted Operating Margin"). The company presents and forecasts its Adjusted Operating Margin before unusual items to give investors a perspective on the underlying business results. Because the company cannot predict the amount and timing of such items and the associated charges or gains that will be recorded in the company's financial statements, it is difficult to include the impact of those items in the forecast.

"Free Cash Flow" (FCF) is a useful measure of the company's cash generation which is free from any significant existing obligation. The difference between cash flows from operating activities (the most comparable GAAP measure) and FCF (the non-GAAP measure) consists mainly of significant cash outflows that the company believes are useful to identify. FCF permits management and investors to gain insight into the number that management employs to measure cash that is free from any significant existing obligation. The difference reflects the impact from:

  -- net capital expenditures,
  -- voluntary pension contributions, and
  -- cash impact of unusual items.

Net capital expenditures are subtracted because they represent long-term commitments. Voluntary pension contributions are subtracted from the GAAP measure because this activity is driven by economic financing decisions rather than operating activity. The company forecasts its cash flow results excluding any voluntary pension contributions because it has not yet made a determination about the amount and timing of any future such contributions. In addition, the company's forecast excludes the cash impact of unusual items because the company cannot predict the amount and timing of such items.

The limitation associated with using FCF is that it subtracts cash items that are ultimately within management's and the Board of Directors' discretion to direct and that therefore may imply that there is less or more cash that is available for the company's programs than the most comparable GAAP measure. This limitation is best addressed by using FCF in combination with the GAAP cash flow numbers.

FCF as presented herein may not be comparable to similarly-titled measures reported by other companies. The measure should be used in conjunction with other GAAP financial measures. Investors are urged to read the company's financial statements as filed with the Securities and Exchange Commission, as well as the accompanying tables to this press release that show all the elements of the GAAP measures of Cash Flows from Operating Activities, Cash Flows from Investing Activities, Cash Flows from Financing Activities and a reconciliation of the company's total cash and cash equivalents for the period. See the accompanying tables to this press release for a cash flow statement presented in accordance with GAAP and a reconciliation presenting the components of FCF.

FORWARD-LOOKING STATEMENTS

This release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. The forward-looking statements in this release include statements addressing the following subjects: future financial condition and operating results. Economic, business, competitive and/or regulatory factors affecting Tyco Electronics' businesses are examples of factors, among others, that could cause actual results to differ materially from those described in the forward- looking statements. In addition, Tyco Electronics' historical combined financial information is not necessarily representative of the results it would have achieved as an independent, publicly-traded company and may not be a reliable indicator of its future results. Tyco Electronics has no intention and is under no obligation to update or alter (and expressly disclaims any such intention or obligation to do so) its forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. More detailed information about these and other factors is set forth in Tyco Electronics' Annual Report on Form 10-K for the fiscal year ended September 28, 2007, as retrospectively adjusted to reflect the Radio Frequency Components and Subsystem and Automotive Sensors businesses as discontinued operations in the Company's Current Report on Form 8-K filed June 27, 2008, and Quarterly Reports on Form 10-Q for the quarterly periods ended December 28, 2007 and March 28, 2008, as well as in current reports on Form 8-K filed by Tyco Electronics.

                          TYCO ELECTRONICS LTD.
       CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
                               (UNAUDITED)

                                           For the        For the Nine
                                       Quarters Ended     Months Ended
                                      June 27, June 29, June 27, June 29,
                                         2008    2007     2008     2007
                                            (in millions, except per
                                                   share data)

  Net sales                             $3,908   $3,292  $11,128  $9,471
  Cost of sales                          2,911    2,455    8,269   7,015
    Gross income                           997      837    2,859   2,456
  Selling, general, and administrative
   expenses                                437      403    1,257   1,198
  Litigation settlement, net                 7      891       30     891
  Separation costs                           -       25        -      25
  Restructuring and other charges, net      16       25       62      42
    Income (loss) from operations          537     (507)   1,510     300
  Interest income                            6       11       25      40
  Interest expense                         (43)     (57)    (142)   (175)
  Other income (expense)                     1     (232)     606    (232)
    Income (loss) from continuing
     operations before income taxes
     and minority interest                 501     (785)   1,999     (67)
  Income taxes                            (182)    (147)    (508)   (347)
  Minority interest                         (2)      (1)      (4)     (3)
    Income (loss) from continuing
     operations                            317     (933)   1,487    (417)
  Income (loss) from discontinued
   operations, net of income taxes          13     (435)      93    (393)
    Net income (loss)                     $330  $(1,368)  $1,580   $(810)

  Basic earnings (loss) per share:
    Income (loss) from continuing
     operations                          $0.66   $(1.88)   $3.05  $(0.84)
    Income (loss) from discontinued
     operations                           0.03    (0.87)    0.19   (0.79)
    Net income (loss)                    $0.69   $(2.75)   $3.24  $(1.63)

  Diluted earnings (loss) per share:
    Income (loss) from continuing
     operations                          $0.66   $(1.88)   $3.03  $(0.84)
    Income (loss) from discontinued
     operations                           0.02    (0.87)    0.19   (0.79)
    Net income (loss)                    $0.68   $(2.75)   $3.22  $(1.63)

  Weighted-average number of
   shares outstanding:
    Basic                                  478      497      487     497
    Diluted                                482      497      490     497



                          TYCO ELECTRONICS LTD.
            CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

                                                   June 27,    September 28,
                                                     2008            2007
                                            (in millions, except share data)

  Assets
  Current Assets:
    Cash and cash equivalents                         $730            $942
    Accounts receivable, net of allowance
     for doubtful accounts of $49 and
     $57, respectively                               2,872           2,594
    Inventories                                      2,427           2,049
    Class action settlement escrow                       -             928
    Class action settlement receivable                   -           2,064
    Prepaid expenses and other current
     assets                                            563             589
    Deferred income taxes                              238             325
    Assets held for sale                               307             505
      Total current assets                           7,137           9,996
  Property, plant, and equipment, net                3,642           3,412
  Goodwill                                           7,206           7,177
  Intangible assets, net                               513             526
  Deferred income taxes                              1,985           1,397
  Receivable from Tyco International
   Ltd. and Covidien                                 1,269             844
  Other assets                                         362             336
      Total Assets                                 $22,114         $23,688

  Liabilities and Shareholders' Equity
  Current Liabilities:
    Current maturities of long-term debt               $21              $5
    Accounts payable                                 1,573           1,343
    Class action settlement liability                    -           2,992
    Accrued and other current liabilities            1,445           1,417
    Deferred revenue                                   294             181
    Liabilities held for sale                           86             266
      Total current liabilities                      3,419           6,204
  Long-term debt                                     3,171           3,373
  Long-term pension and postretirement
   liabilities                                         648             607
  Deferred income taxes                                271             271
  Income taxes                                       2,337           1,242
  Other liabilities                                    667             599
    Total Liabilities                               10,513          12,296
  Commitments and contingencies
  Minority interest                                     10              15
  Shareholders' equity:
    Preferred shares, $0.20 par
     value, 125,000,000 shares
     authorized; none outstanding                        -               -
    Common shares, $0.20 par value,
     1,000,000,000 shares authorized;
     500,076,677 and 497,467,930 issued,
     respectively                                      100              99
    Capital in excess:
      Share premium                                     61              13
      Contributed surplus                           10,077          10,029
    Accumulated earnings                               928             186
    Treasury stock, at cost, 24,697,757 and
     44,454 shares, respectively                      (870)             (2)
    Accumulated other comprehensive income           1,295           1,052
      Total Shareholders' Equity                    11,591          11,377
      Total Liabilities and Shareholders'
       Equity                                      $22,114         $23,688



                          TYCO ELECTRONICS LTD.
 CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                           For the         For the Nine
                                       Quarters Ended      Months Ended
                                      June 27, June 29,  June 27,  June 29,
                                        2008     2007      2008      2007
                                                  (in millions)

  Cash Flows From Operating Activities:
  Net income (loss)                      $330   $(1,368)  $1,580    $(810)
    (Income) loss from discontinued
     operations, net of income taxes      (13)      435      (93)     393
  Income (loss) from continuing
   operations                             317      (933)   1,487     (417)
  Adjustments to reconcile net cash
   provided by operating activities:
    Class action settlement                 -       891     (936)     891
    Depreciation and amortization         143       130      414      381
    Deferred income taxes                  76        64      203      121
    Tax sharing income                     (1)        -     (606)       -
    Loss on retirement of debt              -       232        -      232
    Other                                  27        40       67       87
    Changes in assets and liabilities,
     net of the effects of acquisitions
     and divestitures:
      Accounts receivable, net            (89)      (71)    (160)     (84)
      Inventories                         (20)       14     (307)    (202)
      Accounts payable                     43        38       77       41
      Accrued and other liabilities        (6)       47      (40)     (26)
      Income taxes                        (17)     (163)       -     (163)
      Deferred revenue                    (32)       33      115       58
      Other                                 3       (24)      60      (45)
        Net cash provided by continuing
         operating activities             444       298      374      874
        Net cash (used in) provided
         by discontinued operating
         activities                       (40)        5      (23)       8
        Net cash provided by operating
         activities                       404       303      351      882
  Cash Flows From Investing Activities:
  Capital expenditures                   (167)     (135)    (450)    (732)
  Proceeds from sale of property,
   plant, and equipment                     6         1       37       32
  Class action settlement escrow            -      (921)     936     (921)
  Proceeds from divestiture of
   discontinued operations, net of cash
   retained by businesses sold              -         -      102      227
  Other                                    (4)       13      (21)      11
        Net cash (used in) provided by
         continuing investing activities (165)   (1,042)     604   (1,383)
        Net cash used in discontinued
         investing activities              (1)       (3)      (5)     (14)
        Net cash (used in) provided by
         investing activities            (166)   (1,045)     599   (1,397)
  Cash Flows From Financing Activities:
  Net increase in commercial paper          1         -      651        -
  Repayment of long-term debt            (400)      (67)  (1,351)     (74)
  Proceeds from long-term debt            400     3,631      500    3,631
  Allocated debt activity                   -    (3,772)       -   (3,743)
  Net transactions with former parent       -     1,379        -    1,139
  Repurchase of common shares            (240)        -     (832)       -
  Payment of common dividends             (69)        -     (205)       -
  Proceeds from exercise of share
   options                                 23         -       51        -
  Transfers to discontinued operations    (11)     (172)     (11)    (181)
  Other                                    (3)      (18)     (12)      (3)
        Net cash (used in) provided by
         continuing financing activities (299)      981   (1,209)     769
        Net cash provided by (used in)
         discontinued financing
         activities                        27        (2)      12       11
        Net cash (used in) provided by
         financing activities            (272)      979   (1,197)     780
  Effect of currency translation on
   cash                                     2        10       19       22
  Net (decrease) increase in cash and
   cash equivalents                       (32)      247     (228)     287
  Less: net decrease (increase) in cash
   and cash equivalents related to
   discontinued operations                 14         -       16       (5)
  Cash and cash equivalents at
   beginning of period                    748       507      942      472
  Cash and cash equivalents at end of
   period                                $730      $754     $730     $754

  Supplemental Cash Flow Information:
  Income taxes paid, net of refunds      $106      $252     $305     $388

  Reconciliation to Free Cash Flow:
  Net cash provided by continuing
   operating activities                  $444      $298     $374     $874
  Capital expenditures, net              (161)     (134)    (413)    (700)
  Class action settlement                   -         -      936        -
  Income tax advance payment                -       163        -      163
  Free cash flow (1)                     $283      $327     $897     $337


  (1) Free cash flow is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                          TYCO ELECTRONICS LTD.
            CONSOLIDATED AND COMBINED SEGMENT DATA (UNAUDITED)

                   For the Quarters Ended      For the Nine Months Ended
                   June 27,      June 29,         June 27,     June 29,
                     2008          2007             2008         2007
                                     ($ in millions)

  Net Sales:
  Electronic
   Components       $2,930        $2,551           $8,330       $7,481
  Network
   Solutions           573           500            1,602        1,375
  Undersea
   Telecommunications  278           154              864          352
  Wireless
   Systems             127            87              332          263
    Total           $3,908        $3,292          $11,128       $9,471

  Income (Loss)
   from Operations:
  Electronic
   Components         $417  14.2%   $314    12.3%  $1,188  14.3%  $992 13.3%
  Network Solutions     66  11.5%     72    14.4%     188  11.7%   185 13.5%
  Undersea
   Telecommunications   39  14.0%     16    10.4%     121  14.0%    19  5.4%
  Wireless Systems      22  17.3%      7     8.0%      43  13.0%    20  7.6%
  Litigation
   settlement, net
   and separation
   costs                (7)         (916)             (30)        (916)
    Total             $537  13.7%  $(507)  -15.4%  $1,510  13.6%  $300  3.2%



                          TYCO ELECTRONICS LTD.
               NET SALES GROWTH RECONCILIATION (UNAUDITED)

                                                                  Percentage
                                                                       of
                                                                   Segment's
                                                                   Total Net
                                 Change in Net Sales for the Quarter  Sales
                                     Ended June 27, 2008 versus      for the
                                   Net Sales for the Quarter         Quarter
                                         Ended June 29, 2007          Ended
                                                Trans-
                                                lation              June 27,
                                    Organic(1)   (2)        Total      2008
                                           ($ in millions)

  Electronic Components (3):
    Automotive                      $70    6.9%  $115    $185   18.3%    41%
    Computer                         (5)  (2.0)    11       6    2.3      9
    Communications                   20    9.9     18      38   18.4      8
    Industrial                       34   23.3     19      53   36.6      7
    Aerospace and Defense            11    7.3     10      21   13.5      6
    Appliance                         2    1.6     10      12    9.2      5
    Consumer Electronics             (3)  (5.5)     4       1    2.1      1
    Other                            27    4.5     36      63   10.5     23
      Total                         156    6.1    223     379   14.9    100
  Network Solutions (3):
    Energy                           11    5.0     23      34   15.3     45
    Communication Service Provider   (1)  (0.7)    10       9    6.3     27
    Building Networks                18   15.2     11      29   24.2     26
    Other                             -    0.2      1       1    7.1      2
      Total                          28    5.7     45      73   14.6    100%
  Undersea Telecommunications       126   81.3     (2)    124   80.5
  Wireless Systems                   38   42.9      2      40   46.0
    Total                          $348   10.6%  $268    $616   18.7%


                                                                  Percentage
                                                                       of
                                                                   Segment's
                                                                   Total Net
                                                                     Sales
                                   Change in Net Sales for the Nine  for the
                                      Months Ended June 27, 2008       Nine
                                versus Net Sales for the Nine Months  Months
                                         Ended June 29, 2007          Ended
                                                 Trans-
                                                 lation             June 27,
                                    Organic(1)    (2)        Total     2008
                                           ($ in millions)

  Electronic Components (3):
    Automotive                      $165    5.6%  $297    $462   15.7%   41%
    Computer                         (34)  (4.4)    30      (4)  (0.5)    9
    Communications                    88   15.2     45     133   22.9     9
    Industrial                        73   17.3     44     117   27.8     6
    Aerospace and Defense             37    8.5     24      61   14.2     6
    Appliance                        (10)  (2.5)    27      17    4.4     5
    Consumer Electronics             (15)  (9.9)     9      (6)  (3.9)    2
    Other                            (20)  (1.1)    89      69    3.9    22
      Total                          284    3.8    565     849   11.3   100
  Network Solutions (3):
    Energy                            37    6.1     64     101   16.4    45
    Communication Service Provider    22    5.8     27      49   12.5    27
    Building Networks                 44   13.4     31      75   22.9    25
    Other                             (3)  (6.2)     5       2    4.7     3
      Total                          100    7.3    127     227   16.5   100%
  Undersea Telecommunications        510  145.2      2     512  145.5
  Wireless Systems                    62   23.7      7      69   26.2
    Total                           $956   10.1%  $701  $1,657   17.5%


  (1) Represents the change in net sales resulting from volume and price
      changes, before consideration of acquisitions, divestitures, and the
      impact of changes in foreign currency exchange rates.   Organic net
      sales growth is a non-GAAP measure.   See description of non-GAAP
      measures in this release.

  (2) Represents the change in net sales resulting from changes in foreign
      currency exchange rates.

  (3) Industry end market information about net sales is presented
      consistently with our internal management reporting and may be
      periodically revised as management deems necessary.



                          TYCO ELECTRONICS LTD.
        ADJUSTED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                   For the Quarter Ended June 27, 2008

                                                    Adjustments
                                               Restructuring
                                                    and            Adjusted
                                                   Other   Other    Results
                                                 Charges,  Items, (Non-GAAP)
                                       U.S. GAAP    Net    Net(1)     (2)
                                        (in millions, except per share data)

  Net sales                               $3,908     $-     $-      $3,908
  Cost of sales                            2,911      -      -       2,911
    Gross income                             997      -      -         997
  Selling, general, and administrative
   expenses                                  437      -      -         437
  Litigation settlement, net                   7      -     (7)          -
  Restructuring and other charges, net        16    (16)     -           -
    Income from operations                   537     16      7         560
  Interest income                              6      -      -           6
  Interest expense                           (43)     -      -         (43)
  Other income                                 1      -      -           1
    Income from continuing operations
     before income taxes and minority
     interest                                501     16      7         524
  Income taxes                              (182)    (5)     -        (187)
  Minority interest                           (2)     -      -          (2)
    Income from continuing operations       $317    $11     $7        $335

  Basic earnings per share:
    Income from continuing operations      $0.66                     $0.70
  Diluted earnings per share:
    Income from continuing operations      $0.66                     $0.70
  Weighted-average number of shares
   outstanding:
    Basic                                    478                       478
    Diluted                                  482                       482


   ADJUSTED CONSOLIDATED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                   For the Quarter Ended June 27, 2008

                                                    Adjustments
                                               Restructuring
                                                    and            Adjusted
                                                   Other   Other    Results
                                                 Charges,  Items, (Non-GAAP)
                                       U.S. GAAP    Net    Net(1)     (2)
                                                    (in millions)

  Income from Operations:
  Electronic Components                   $417      $11       $-      $428
  Network Solutions                         66        4        -        70
  Undersea Telecommunications               39        1        -        40
  Wireless Systems                          22        -        -        22
  Litigation settlement, net                (7)       -        7         -
    Total                                 $537      $16       $7      $560


  (1) Consists of $7 million of net costs related to the settlement of
      legacy securities litigation.

  (2) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                          TYCO ELECTRONICS LTD.
          ADJUSTED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
                   For the Quarter Ended June 29, 2007

                                                  Adjustments
                                                     Restruct- Loss
                                         Liti-  Separ-  uring  on   Adjusted
                                        gation  ation   and  Retire- Results
                                        Settle- Related Other  ment  (Non-
                                 U.S.    ment,  Costs  Charges, of   GAAP)
                                 GAAP    Net    (1)     Net   Debt    (2)
                                       (in millions, except per share data)

  Net sales                      $3,292    $-    $-     $-    $-   $3,292
  Cost of sales                   2,455     -     -      -     -    2,455
    Gross income                    837     -     -      -     -      837
  Selling, general, and
   administrative expenses          403     -   (25)     -     -      378
  Litigation settlement, net        891  (891)    -      -     -        -
  Separation costs                   25     -   (25)     -     -        -
  Restructuring and other
   charges, net                      25     -     -    (25)    -        -
    Income (loss) from
     operations                    (507)  891    50     25     -      459
  Interest income                    11     -     -      -     -       11
  Interest expense                  (57)                              (57)
  Other expense                    (232)    -     -      -   232        -
    Income (loss) from
     continuing operations
     before income taxes
     and minority interest         (785)  891    50     25   232      413
  Income taxes                     (147)    -   (14)    (9)    -     (170)
  Minority interest                  (1)    -     -      -     -       (1)
    Income (loss) from
     continuing operations        $(933) $891   $36    $16  $232     $242

  Basic and diluted earnings
   (loss) per share:
    Income (loss) from
     continuing operations       $(1.88)                            $0.49

  Weighted-average number
   of shares outstanding:
    Basic and diluted               497                               497


  ADJUSTED COMBINED INCOME (LOSS) FROM OPERATIONS BY SEGMENT (UNAUDITED)
                   For the Quarter Ended June 29, 2007

                                                   Adjustments
                                                     Restruct- Loss
                                         Liti-  Separ-  uring  on   Adjusted
                                        gation  ation   and  Retire- Results
                                        Settle- Related Other  ment  (Non-
                                 U.S.    ment,  Costs  Charges, of   GAAP)
                                 GAAP    Net    (1)     Net   Debt    (2)
                                                 (in millions)

  Income (Loss) from Operations:
  Electronic Components          $314    $-     $20     $18    $-    $352
  Network Solutions                72     -       3       4     -      79
  Undersea Telecommunications      16     -       1       2     -      19
  Wireless Systems                  7     -       1       1     -       9
  Litigation settlement, net and
   separation costs              (916)  891      25       -     -       -
    Total                       $(507) $891     $50     $25    $-    $459


  (1) Includes $25 million of separation costs, primarily related to
      employee costs, and $25 million of costs related to building separate
      company functions that did not exist in the prior year.

  (2) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                            TYCO ELECTRONICS LTD.
          ADJUSTED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                   For the Nine Months Ended June 27, 2008

                                                   Adjustments
                                      Restructuring
                                           and       Tax    Other  Adjusted
                                          Other    Sharing  Items,  Results
                                  U.S.   Charges,   Income   Net  (Non-GAAP)
                                  GAAP     Net       (1)     (2)      (3)
                                       (in millions, except per share data)

  Net sales                     $11,128    $-        $-      $-     $11,128
  Cost of sales                   8,269    (1)        -       -       8,268
    Gross income                  2,859     1         -       -       2,860
  Selling, general, and
   administrative expenses        1,257     -         -      36       1,293
  Litigation settlement, net         30     -         -     (30)          -
  Restructuring and other
   charges, net                      62   (62)        -       -           -
    Income from operations        1,510    63         -      (6)      1,567
  Interest income                    25     -         -       -          25
  Interest expense                 (142)    -         -       -        (142)
  Other income                      606     -      (572)      -          34
    Income from continuing
     operations before income
     taxes and minority
     interest                     1,999    63      (572)     (6)      1,484
  Income taxes                     (508)  (19)        -      20        (507)
  Minority interest                  (4)    -         -       -          (4)
    Income from continuing
     operations                  $1,487   $44     $(572)    $14        $973

  Basic earnings per share:
    Income from continuing
     operations                   $3.05                               $2.00
  Diluted earnings per share:
    Income from continuing
     operations                   $3.03                               $1.99

  Weighted-average number
   of shares outstanding:
    Basic                           487                                 487
    Diluted                         490                                 490


   ADJUSTED CONSOLIDATED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                 For the Nine Months Ended June 27, 2008

                                                   Adjustments
                                      Restructuring
                                           and       Tax    Other  Adjusted
                                          Other    Sharing  Items,  Results
                                  U.S.   Charges,   Income   Net  (Non-GAAP)
                                  GAAP     Net       (1)     (2)      (3)
                                                  (in millions)

  Income from Operations:
  Electronic Components          $1,188    $41       $-     $(36)    $1,193
  Network Solutions                 188     18        -        -        206
  Undersea Telecommunications       121      3        -        -        124
  Wireless Systems                   43      1        -        -         44
  Litigation settlement, net        (30)     -        -       30          -
    Total                        $1,510    $63       $-      $(6)    $1,567


  (1) In connection with the adoption of FIN 48, the Company recorded income
      pursuant to its Tax Sharing Agreement with Tyco International and
      Covidien.

  (2) Consists of a $36 million gain on the sale of real estate and $30
      million of net costs related to the settlement of legacy securities
      litigation.

  (3) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.



                            TYCO ELECTRONICS LTD.
            ADJUSTED COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
                   For the Nine Months Ended June 29, 2007

                                                   Adjustments
                                                     Restruct- Loss
                                         Liti-  Separ-  uring  on   Adjusted
                                        gation  ation   and  Retire- Results
                                        Settle- Related Other  ment  (Non-
                                 U.S.    ment,  Costs  Charges, of   GAAP)
                                 GAAP    Net     (1)     Net   Debt   (2)
                                      (in millions, except per share data)

  Net sales                    $9,471     $-     $-     $-     $-    $9,471
  Cost of sales                 7,015      -      -      -      -     7,015
    Gross income                2,456      -      -      -      -     2,456
  Selling, general, and
   administrative expenses      1,198      -    (41)     -      -     1,157
  Litigation settlement, net      891   (891)     -      -      -         -
  Separation costs                 25      -    (25)     -      -         -
  Restructuring and other
   charges, net                    42      -      -    (42)     -         -
    Income from operations        300    891     66     42      -     1,299
  Interest income                  40      -      -      -      -        40
  Interest expense               (175)                                 (175)
  Other expense                  (232)     -      -      -    232         -
    Income (loss) from
     continuing operations
     before income taxes
     and minority interest        (67)   891     66     42    232     1,164
  Income taxes                   (347)     -    (19)   (14)     -      (380)
  Minority interest                (3)     -      -      -      -        (3)
    Income (loss) from
     continuing operations      $(417)  $891    $47    $28   $232      $781

  Basic and diluted earnings
   (loss) per share:
    Income (loss) from
     continuing operations     $(0.84)                                $1.57

  Weighted-average number of
   shares outstanding:
    Basic and diluted             497                                   497


     ADJUSTED COMBINED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                 For the Nine Months Ended June 29, 2007

                                                   Adjustments
                                                     Restruct- Loss
                                         Liti-  Separ-  uring  on   Adjusted
                                        gation  ation   and  Retire- Results
                                        Settle- Related Other  ment  (Non-
                                 U.S.    ment,  Costs  Charges, of   GAAP)
                                 GAAP    Net    (1)     Net   Debt   (2)

                                                 (in millions)
  Income from Operations:
  Electronic Components          $992     $-    $33    $34     $-   $1,059
  Network Solutions               185      -      5      4      -      194
  Undersea Telecommunications      19      -      1      3      -       23
  Wireless Systems                 20      -      2      1      -       23
  Litigation settlement, net and
   separation costs              (916)   891     25      -      -        -
    Total                        $300   $891    $66    $42     $-   $1,299


  (1) Includes $25 million of separation costs, primarily related to
      employee costs, and $41 million of costs related to building separate
      company functions that did not exist in the prior year.

  (2) Adjusted results is a non-GAAP measure.  See description of non-GAAP
      measures contained in this release.

SOURCE: Tyco Electronics Ltd.

CONTACT: Media Relations, Sheri Woodruff, +1-610-893-9555, Office,
+1-609-933-9243, Mobile, swoodruff@tycoelectronics.com, or Investor Relations,
John Roselli, +1-610-893-9559, Office, john.roselli@tycoelectronics.com, or
Keith Kolstrom, +1-610-893-9551, Office, keith.kolstrom@tycoelectronics.com,
all of Tyco Electronics Ltd.

Web site: http://www.tycoelectronics.com/


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