Tyco Electronics Reports Strong First Quarter Results; Increases Full-Year Outlook

-- Sales Increased 19 Percent to $3.7 Billion; Organic Sales Up 12 Percent

-- Earnings Per Share (EPS) From Continuing Operations of $1.75 on a GAAP Basis; Adjusted EPS of $0.63, an Increase of 26 Percent Over Prior Year

-- Income From Operations of $478 Million With Operating Margin of 13.0 Percent; Adjusted Operating Income of $499 Million With Adjusted Operating Margin of 13.6 Percent

-- Company Increases 2008 Outlook for Adjusted EPS From Continuing Operations to $2.45 to $2.55, an Increase of 12 to 17 Percent Over Prior Year

PRNewswire-FirstCall
PEMBROKE, Bermuda
(BSX:TEL)
Feb 6, 2008

PEMBROKE, Bermuda, Feb. 6 /PRNewswire-FirstCall/ -- Tyco Electronics Ltd. (NYSE: TEL)(BSX: TEL) today reported net sales of $3.7 billion for the fiscal first quarter ended Dec. 28, 2007, an increase of 19 percent over the prior- year period. Excluding currency effects, organic sales growth was 12 percent. GAAP diluted earnings per share (EPS) from continuing operations were $1.75 for the quarter, compared to $0.48 in the prior-year period. Included in EPS from continuing operations was $1.15 of income related to the company's tax- sharing agreement from adoption of a new accounting standard, as well as $0.03 per share of charges related to restructuring. This compares to $0.02 per share of charges in the prior-year quarter. Adjusted diluted EPS from continuing operations was $0.63 in the quarter, an increase of 26 percent over last year's adjusted EPS of $0.50.

"We had a very good start to the fiscal year," said Tyco Electronics Chief Executive Officer Tom Lynch. "We continued to benefit from the diversity of our business and the strength of our international markets, where we generate more than two-thirds of our sales. Our Undersea Telecommunications business also had another strong quarter. Our adjusted operating margin of 13.6 percent improved by half a point compared to last year's first quarter. We also had strong cash flow in the quarter and used excess cash to repurchase more than 7 million of the company's common shares."

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 Dec. 29, 2006 unless otherwise indicated.

        ($ in millions)         Dec. 28,      Dec. 29,
                                  2007          2006     $ Change   % Change
  Net Sales                       $3,675        $3,094      $581       19%
  Operating Income                  $478          $394       $84       21%
  Restructuring-Related Costs       $(21)         $(10)
  Other Items, Net                    $0           $(2)
  Adjusted Operating Income         $499          $406       $93       23%
  Operating Margin                  13.0%         12.7%
  Adjusted Operating Margin         13.6%         13.1%

GAAP operating income was $478 million, compared to $394 million in the prior-year period, an increase of 21 percent. The operating margin on a GAAP basis was 13.0 percent, compared to 12.7 percent in the prior-year period. Included in operating income were restructuring costs of $21 million in the current quarter, as well as $12 million of restructuring costs and other items in the prior-year quarter. Excluding these items in both periods, adjusted operating income was $499 million compared to $406 million a year ago, an increase of 23 percent. The adjusted operating margin was 13.6 percent, compared to 13.1 percent a year ago, primarily reflecting the benefit of higher sales volumes in the Network Solutions and Undersea Telecommunications segments.

CASH FLOW

Cash provided by continuing operating activities was $392 million in the quarter, an increase of 84 percent over the prior-year quarter. The increase was largely due to improved working capital performance and higher income levels compared to the prior-year quarter. Free cash flow was $267 million.

  OTHER ITEMS
  -- During the quarter, the company repurchased 7.1 million shares for $259
     million.  This is part of a previously-authorized $750 million share
     repurchase program that is expected to be completed during fiscal 2008.

  -- Effective at the beginning of this quarter, the company adopted
     Financial Accounting Standards Board ("FASB") Interpretation No.
     ("FIN") 48, "Accounting for Uncertainty in Income Taxes -- an
     interpretation of FASB Statement No. 109.  This resulted in an increase
     to the company's contingent tax liabilities, an increase in deferred
     tax assets and a corresponding decrease to Shareholders' Equity.
     Additionally, the company recorded Other Income of $572 million related
     to certain incremental tax liabilities recorded upon adoption of FIN 48
     for which Tyco International and Covidien are responsible pursuant to
     the tax-sharing agreement.  The net impact of these items was a
     reduction in Shareholders' Equity of $63 million.

  -- The company closed the sale of its Power Systems business for $102
     million and recorded a pre-tax gain of $56 million, which is included
     in Income from Discontinued Operations.

  ORDERS

Total company orders grew 17 percent organically in the quarter compared to the prior year, and the book-to-bill ratio was 1.17. Excluding the company's Undersea Telecommunications and Wireless Systems segments, which are project-oriented businesses with uneven order patterns, orders grew 9 percent organically in the quarter and the book-to-bill ratio was 1.04.

COMPANY INCREASES FULL-YEAR OUTLOOK

For the full fiscal year 2008, the company now expects adjusted EPS from continuing operations of $2.45 to $2.55, compared to $2.18 in the prior year -- an increase of 12 to 17 percent. This compares to the company's prior outlook of $2.40 to $2.50 per share. The increase reflects the first quarter results and a stronger outlook for the Undersea Telecommunications segment, partially offset by $0.05 per share of net incremental expense due to the adoption of FIN 48. The company continues to expect restructuring-related costs of approximately $130 million ($0.17 per share) for the full year. The company expects full-year sales growth of 11 to 13 percent with organic sales growth of 7 to 9 percent. This outlook excludes the one-time $1.15 EPS benefit related to the company's tax sharing agreement from the adoption of FIN 48. This outlook assumes stable foreign exchange rates and raw material prices for the remainder of the fiscal year.

For the second quarter of fiscal 2008, the company expects sales growth of 10 to 12 percent over prior-year sales of $3.3 billion, with organic sales growth of 5 to 7 percent. The company further expects diluted EPS from continuing operations of $0.57 to $0.59, which includes restructuring costs of approximately $0.03 per share. Adjusted EPS from continuing operations are expected to be $0.60 to $0.62, compared to prior-year adjusted EPS of $0.61. This outlook assumes a 37 percent tax rate and Other Income of approximately $23 million, compared to a 25 percent tax rate and no Other Income in last year's second quarter. The combination of a higher tax rate, partially offset by higher Other Income, adversely affects the year over year comparison by approximately $0.07 per share.

"With our strong first quarter and the continued strength of our Undersea Telecommunications business, we are increasing our EPS outlook for the full year," said Lynch. "Our order rates have remained solid across most of our businesses and this is offsetting continued weakness in our U.S. components business. We believe the diversity of our business and our broad geographic reach will help us to perform well in this uncertain economic environment."

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)         Dec. 28,   Dec. 29,                       Organic
                            2007       2006   $ Change  % Change     Growth
  Net Sales                $2,640     $2,390    $250       10%         5%
  Operating Income           $352       $327     $25        8%
  Restructuring-Related
   Costs                     $(15)       $(8)
  Separation-Related
   Costs                       $0        $(2)
  Adjusted Operating
   Income                    $367       $337     $30        9%
  Operating Margin           13.3%      13.7%
  Adjusted Operating
   Margin                    13.9%      14.1%

Sales in the segment grew 10 percent year over year, or 5 percent organically. On an organic basis, growth was driven by strength in the communications (+22 percent), industrial (+10 percent), aerospace and defense (+9 percent) and automotive (+8 percent) markets. This growth was partially offset by a 5 percent decline in the computer market, driven by the strategic decision to exit certain low-margin business, and a 4 percent decline in our appliance market. On a geographic basis, segment sales grew 9 percent organically in Asia, 4 percent in Europe/Middle East/Africa (EMEA), and declined 1 percent in the Americas.

Operating income increased by $25 million and adjusted operating income grew $30 million, due to higher sales levels. The adjusted operating margin decreased by 20 basis points due to low productivity in the company's U.S. automotive business. Restructuring-related costs in the quarter were $15 million, compared to $8 million 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)         Dec. 28,   Dec. 29,                       Organic
                            2007       2006    $ Change  % Change    Growth
  Net Sales                  $512       $421      $91       22%        12%
  Operating Income            $69        $54      $15       28%
  Restructuring-Related
   Costs                      $(5)        $0
  Adjusted Operating
   Income                     $74        $54      $20       37%
  Operating Margin           13.5%      12.8%
  Adjusted Operating
   Margin                    14.5%      12.8%

Segment sales grew 22 percent compared to the prior-year quarter, or 12 percent organically. On an organic basis, sales to the communication service provider market increased 22 percent, due to increased spending levels at certain carriers. Sales to the building networks market grew 10 percent, reflecting strong demand for faster and more secure networks particularly in EMEA and Asia. Sales to the energy market grew 8 percent, reflecting solid growth in both EMEA and Asia.

Operating income increased by $15 million and adjusted operating income increased by $20 million. The increase in the adjusted operating margin primarily relates to the higher volumes, as well as a higher-margin sales mix. Restructuring-related costs in the quarter were $5 million, compared to no 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)         Dec. 28,   Dec. 29,                       Organic
                            2007       2006    $ Change  % Change    Growth
  Net Sales                  $314        $76     $238      313%       311%
  Operating Income            $43        $(1)     $44       NM
  Restructuring-Related
   Costs                      $(1)       $(1)
  Adjusted Operating
   Income                     $44         $0      $44       NM
  Operating Margin           13.7%        NM
  Adjusted Operating
   Margin                    14.0%         0%

Sales in the segment grew 311 percent organically versus the prior year, primarily related to the construction of several large projects in emerging markets. Adjusted operating income increased $44 million, driven by higher volumes and improved operating leverage. Restructuring-related costs in both the current and prior-year quarters were $1 million.

Wireless Systems

The Wireless Systems segment is a leading innovator of wireless technology for critical communications, radar and defense applications.

  ($ in millions)         Dec. 28,   Dec. 29,                       Organic
                            2007       2006    $ Change  % Change    Growth
  Net Sales                  $209       $207       $2        1%         1%
  Operating Income            $14        $14       $0        0%
  Restructuring-Related
   Costs                       $0        $(1)
  Adjusted Operating
   Income                     $14        $15      $(1)      (7)%
  Operating Margin            6.7%       6.8%
  Adjusted Operating
   Margin                     6.7%       7.2%

Sales in the segment were essentially flat year over year. Modest growth in the wireless networks business was offset by declines in the aerospace and defense and commercial products businesses. Operating income was flat versus last year. There were no restructuring-related costs in the current quarter, compared to costs of $1 million in the prior-year quarter.

ABOUT TYCO ELECTRONICS

Tyco Electronics Ltd. is a leading global provider of engineered electronic components, network solutions, wireless systems and undersea telecommunication systems, with 2007 sales of $13.5 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 approximately 8,000 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. EST. 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) 230-1766. The telephone dial-in number for participants outside
     the United States is (612) 332-0418.

  -- An audio replay of the conference call will be available beginning at
     10:30 a.m. on Feb. 6, 2008 and ending at 11:59 p.m. on Feb. 13, 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 904795.

  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,
  -- 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.

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

                                                  For the Quarters Ended
                                              December 28,      December 29,
                                                   2007              2006
                                                (in millions, except per
                                                        share data)

  Net sales                                       $3,675            $3,094
  Cost of sales                                    2,758             2,279
    Gross income                                     917               815
  Selling, general, and administrative
   expenses                                          418               411
  Restructuring and other charges, net                21                10
    Income from operations                           478               394
  Interest income                                     10                15
  Interest expense                                   (50)              (60)
  Other income                                       592                 -
    Income from continuing operations
     before income taxes
     and minority interest                         1,030               349
  Income taxes                                      (157)             (108)
  Minority interest                                   (1)               (1)
    Income from continuing operations                872               240
  Income from discontinued operations,
   net of income taxes                                77                41
    Net income                                      $949              $281

  Basic earnings per share:
    Income from continuing operations              $1.76             $0.48
    Income from discontinued operations             0.15              0.09
    Net income                                     $1.91             $0.57

  Diluted earnings per share:
    Income from continuing operations              $1.75             $0.48
    Income from discontinued operations             0.15              0.09
    Net income                                     $1.90             $0.57

  Weighted-average number of shares
   outstanding:
    Basic                                            496               497
    Diluted                                          499               497


                          TYCO ELECTRONICS LTD.
                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                              December 28,
                                                 2007         September 28,
                                              (unaudited)          2007
                                            (in millions, except share data)
  Assets
  Current Assets:
    Cash and cash equivalents                       $916              $936
    Accounts receivable, net of allowance
     for doubtful accounts of $55 and
     $60, respectively                             2,732             2,686
    Inventories                                    2,343             2,128
    Class action settlement escrow                   933               928
    Class action settlement receivable             2,078             2,064
    Prepaid expenses and other current
     assets                                          539               591
    Deferred income taxes                            238               325
    Assets held for sale                               -               215
      Total current assets                         9,779             9,873
  Property, plant, and equipment, net              3,546             3,505
  Goodwill                                         7,181             7,177
  Intangible assets, net                             547               554
  Deferred income taxes                            2,136             1,397
  Receivable from Tyco International
   Ltd. and Covidien                               1,424               844
  Other assets                                       355               338
      Total Assets                               $24,968           $23,688

  Liabilities and Shareholders' Equity
  Current Liabilities:
    Current maturities of long-term debt             $24                $5
    Accounts payable                               1,459             1,382
    Class action settlement liability              3,011             2,992
    Accrued and other current liabilities          1,379             1,450
    Deferred revenue                                 296               191
    Liabilities held for sale                          -               165
      Total current liabilities                    6,169             6,185
  Long-term debt                                   3,260             3,373
  Long-term pension and postretirement
   liabilities                                       630               607
  Deferred income taxes                              271               271
  Income taxes                                     2,577             1,242
  Other liabilities                                  620               618
      Total Liabilities                           13,527            12,296
  Commitments and contingencies
  Minority interest                                   12                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;
     498,448,019 and 497,467,930 issued
     and outstanding, respectively                   100                99
    Capital in excess:
      Share premium                                   31                13
      Contributed surplus                         10,048            10,029
    Accumulated earnings                             432               186
    Treasury stock, at cost, 7,084,934
     and 44,454 shares, respectively                (260)               (2)
    Accumulated other comprehensive
     income                                        1,078             1,052
      Total Shareholders' Equity                  11,429            11,377
      Total Liabilities and Shareholders'
       Equity                                    $24,968           $23,688


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

                                                  For the Quarters Ended
                                             December 28,       December 29,
                                                  2007               2006
                                                       (in millions)
  Cash Flows From Operating Activities:
  Net income                                        $949               $281
    Income from discontinued
     operations, net of income taxes                 (77)               (41)
  Income from continuing operations                  872                240
  Adjustments to reconcile net cash
   provided by operating activities:
    Depreciation and amortization                    140                128
    Deferred income taxes                             42                 21
    Tax sharing income                              (592)                 -
    Other                                             67                 32
    Changes in assets and liabilities,
     net of the effects of acquisitions
     and divestitures:
      Accounts receivable, net                       (22)                50
      Inventories                                   (130)              (217)
      Accounts payable                                 2                 51
      Accrued and other liabilities                 (160)              (159)
      Income taxes                                    46                  -
      Deferred revenue                               111                 60
      Other                                           16                  7
        Net cash provided by continuing
         operating activities                        392                213
        Net cash provided by discontinued
         operating activities                          1                  6
        Net cash provided by operating
         activities                                  393                219
  Cash Flows From Investing Activities:
  Capital expenditures                              (129)              (452)
  Proceeds from sale of property,
   plant, and equipment                                4                  7
  Proceeds from divestiture of
   discontinued operations, net of cash
   retained by businesses sold                       102                227
  Other                                               (9)                 1
        Net cash used in continuing
         investing activities                        (32)              (217)
        Net cash used in discontinued
         investing activities                          -                 (2)
        Net cash used in investing activities        (32)              (219)
  Cash Flows From Financing Activities:
  Net increase in commercial paper                   505                  -
  Repayment of long-term debt                       (700)                 -
  Proceeds from long-term debt                       100                  -
  Repurchase of common shares                       (232)                 -
  Payment of common dividends                        (70)                 -
  Proceeds from exercise of share options             19                  -
  Other                                               (8)                (2)
        Net cash used in continuing
         financing activities                       (386)                (2)
        Net cash (used in) provided by
         discontinued financing activities            (4)                 2
        Net cash used in financing activities       (390)                 -
  Effect of currency translation on cash               6                  7
  Net (decrease) increase in cash and
   cash equivalents                                  (23)                 7
  Less: net decrease (increase) in cash
   and cash equivalents related to
   discontinued operations                             3                 (6)
  Cash and cash equivalents at
   beginning of period                               936                469
  Cash and cash equivalents at end of
   period                                           $916               $470

  Supplemental Cash Flow Information:
  Income taxes paid, net of refunds                  $81                $76

  Reconciliation to Free Cash Flow:
  Net cash provided by continuing
   operating activities                             $392               $213
  Capital expenditures, net                         (125)              (445)
  Free cash flow (1)                                $267              $(232)

  (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
                              December 28,           December 29,
                                  2007                   2006
                                        ($ in millions)
  Net Sales:
  Electronic Components            $2,640                 $2,390
  Network Solutions                   512                    421
  Undersea Telecommunications         314                     76
  Wireless Systems                    209                    207
    Total                          $3,675                 $3,094

  Income from Operations:
  Electronic Components              $352      13.3%        $327      13.7%
  Network Solutions                    69      13.5%          54      12.8%
  Undersea Telecommunications          43      13.7%          (1)     (1.3)%
  Wireless Systems                     14       6.7%          14       6.8%
    Total                            $478      13.0%        $394      12.7%


                          TYCO ELECTRONICS LTD.
               NET SALES GROWTH RECONCILIATION (UNAUDITED)

                                                                  Percentage
                                                                      of
                                                                   Segment's
                                                                     Total
                                   Change in Net Sales for the        Net
                                 Quarter Ended December 28, 2007     Sales
                                versus Net Sales for the Quarter     for the
                                     Ended December 29, 2006         Quarter
                                                                      Ended
                                               Trans-               December
                                Organic(1)    lation(2)    Total    28, 2007
                                               ($ in
                                              millions)
  Electronic Components(3):
    Automotive                 $74     8.1%     $81     $155   16.9%    41%
    Computer                   (14)   (4.9)       9       (5)  (1.8)    10
    Communication Equipment     41    22.1       13       54   28.7      9
    Industrial Machinery        12    10.2       10       22   17.6      6
    Appliance                   (4)   (3.5)       7        3    2.4      5
    Aerospace and Defense        7     8.9        4       11   14.1      3
    Consumer Electronics         -    (3.6)       -        -      -      2
    Other                       (9)   (1.4)      19       10    1.6     24
      Total                    107     4.5      143      250   10.5    100
  Network Solutions (3):
    Energy                      16     8.1       19       35   18.2     44
    Communication Service
     Provider                   25    22.4       10       35   31.3     29
    Building Networks           10    10.4       10       20   19.8     24
    Other                        -    (0.5)       1        1    6.3      3
      Total                     51    12.1       40       91   21.6    100%
  Undersea Telecommunications  237   311.4        1      238  313.2
  Wireless Systems               2     0.8        -        2    1.0
      Total                   $397    12.5%    $184     $581   18.8%

  (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 December 28, 2007

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

  Net sales                               $3,675      $-       $-    $3,675
  Cost of sales                            2,758       -        -     2,758
    Gross income                             917       -        -       917
  Selling, general, and administrative
   expenses                                  418       -        -       418
  Restructuring and other charges, net        21     (21)       -       -
    Income from operations                   478      21        -       499
  Interest income                             10       -        -        10
  Interest expense                           (50)      -        -       (50)
  Other income                               592       -     (572)       20
    Income from continuing operations
     before income taxes and minority
     interest                              1,030      21     (572)      479
  Income taxes                              (157)     (6)       -      (163)
  Minority interest                           (1)      -        -        (1)
    Income from continuing operations       $872     $15    $(572)     $315

  Basic earnings per share:
    Income from continuing operations      $1.76                      $0.64
  Diluted earnings per share:
    Income from continuing operations      $1.75                      $0.63
  Weighted-average number of shares
   outstanding:
    Basic                                    496                        496
    Diluted                                  499                        499


   ADJUSTED CONSOLIDATED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                 For the Quarter Ended December 28, 2007

                                                   Adjustments
                                              Restructuring
                                                   and      Tax    Adjusted
                                                  Other   Sharing  Results
                                                 Charges, Income  (Non-GAAP)
                                        US GAAP    Net      (1)      (2)
                                                   (in millions)
  Income from Operations:
  Electronic Components                     $352     $15       $-      $367
  Network Solutions                           69       5        -        74
  Undersea Telecommunications                 43       1        -        44
  Wireless Systems                            14       -        -        14
    Total                                   $478     $21       $-      $499

  (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) 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 December 29, 2006

                                                  Adjustments
                                                        Restruct-
                                                          uring
                                               Separation  and     Adjusted
                                                Related   Other    Results
                                                 Costs   Charges, (Non-GAAP)
                                        US GAAP   (1)      Net       (2)
                                       (in millions, except per share data)

  Net sales                             $3,094     $-        $-      $3,094
  Cost of sales                          2,279      -         -       2,279
    Gross income                           815      -         -         815
  Selling, general, and administrative
   expenses                                411     (2)        -         409
  Restructuring and other charges, net      10      -       (10)          -
    Income from operations                 394      2        10         406
  Interest income                           15      -         -          15
  Interest expense                         (60)     -         -         (60)
    Income from continuing operations
     before income taxes and minority
     interest                              349      2        10         361
  Income taxes                            (108)    (1)       (4)       (113)
  Minority interest                         (1)     -         -          (1)
    Income from continuing operations     $240     $1        $6        $247

  Basic and diluted earnings per share:
    Income from continuing operations    $0.48                        $0.50

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


     ADJUSTED COMBINED INCOME FROM OPERATIONS BY SEGMENT (UNAUDITED)
                 For the Quarter Ended December 29, 2006

                                                  Adjustments
                                                        Restruct-
                                                          uring
                                               Separation  and     Adjusted
                                                Related   Other    Results
                                                 Costs   Charges, (Non-GAAP)
                                        US GAAP   (1)      Net       (2)
                                                    (in millions)
  Income from Operations:
  Electronic Components                   $327     $2        $8        $337
  Network Solutions                         54      -         -          54
  Undersea Telecommunications               (1)     -         1           -
  Wireless Systems                          14      -         1          15
    Total                                 $394     $2       $10        $406

  (1) Includes $2 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, Office: +1-610-893-9555,
Mobile: +1-609-933-9243, swoodruff@tycoelectronics.com; or Investor Relations:
John Roselli, Office: +1-610-893-9559, john.roselli@tycoelectronics.com, or
Keith Kolstrom, Office: +1-610-893-9551, keith.kolstrom@tycoelectronics.com,
all of Tyco Electronics Ltd.

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


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