UTC FIRST QUARTER EARNINGS PER SHARE RISE 9 PERCENT TO $1.00, REVENUES INCREASE 5 PERCENT; OUTLOOK FOR 2003 REAFFIRMED

        HARTFORD, Conn., April 17, 2003 - United Technologies Corp. (NYSE: UTX) today reported first quarter 2003 earnings per share were $1.00, up 9 percent from the same quarter last year. Net income grew 7 percent to $502 million. Consolidated revenues were $6.7 billion, 5 percent higher than last year.

        First quarter cash flow from operations was $252 million including voluntary pension contributions of $500 million. The company repurchased 3.4 million common shares for $201 million and the debt to total capital ratio decreased from year-end to 36 percent.

        "The first quarter exemplified yet again the importance of UTC's balance of businesses," said George David, chairman and chief executive officer. "High revenue growth at Otis and more than a point of margin expansion, combined with Carrier's fourth consecutive quarterly margin increase, helped offset commercial aviation weakness. Although commercial aerospace sales were down 20 percent, our military aerospace revenues grew more than 30 percent. Favorable foreign currency translation also helped offset weakness in some major markets," David said.

        "Cash flow from operations was exceptionally strong in the quarter compared with our traditional net income standard and considering the quarter's contributions of $500 million to UTC's pension plans. It's a great start to the year," he added.

        "We expect the business environment to remain difficult throughout 2003 and particularly the second quarter. Our commercial airline customers are challenged as never before with the post-9/11 and Iraq war environments in the U.S. and the SARS outbreak in Asia. However, our expectations for full year earnings remain in the $4.55 to $4.80 range as indicated to investors in December, 2002."

        "Balance works," he said.

        The accompanying tables include information integral to assessing the company's financial position, operating performance, and cash flow.

        United Technologies Corp., based in Hartford, Connecticut, provides a broad range of high technology products and support services to the building systems and aerospace industries.

        This release includes "forward looking statements" that are subject to risks and uncertainties. For information identifying economic, political, climatic, currency, regulatory, technological, competitive and some other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see UTC's SEC filings as updated from time to time, including, but not limited to, the discussion included in the Business section of UTC's Annual Report on Form 10-K under the headings "General", "Description of Business by Segment" and "Other Matters Relating to the Corporation's Business as a Whole" and the information included in UTC's 10-K and 10-Q reports under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations."