Teledyne Technologies Incorporated is a leading provider of sophisticated electronic components and subsystems, instrumentation and communications products, including defense electronics, monitoring and control instrumentation for marine, environmental and industrial applications, harsh environment interconnect products, data acquisition and communications equipment for air transport and business aircraft, and components and subsystems for wireless and satellite communications. We also provide engineered systems and information technology services for defense, space and environmental applications, manufacture general aviation engines and components, and supply energy generation, energy storage and small propulsion products.

We serve niche market segments where performance, precision and reliability are critical. Our customers include government agencies, aerospace prime contractors, energy exploration and production companies, major industrial companies, and airlines and general aviation companies.

Total Sales in 2008 were $1,893.0 million. Our aggregate segment operating profit and other segment income were $218.5 million. Approximately 60% of our total sales in 2008 were to commercial customers and the balance was to the U.S. Government, as a prime contractor or subcontractor. Approximately 48% of these U.S Government sales were attributable to fixed price-type contracts and the balance to cost plus fee-type contracts. Sales to international customers accounted for approximately 24% of total sales in 2008.

In the fourth quarter 2007, we have realigned Teledyne Energy System, Inc., Teledyne Turbine Engines and Teledyne Battery Products in a new segment called Energy and Power Systems. This segment will provide Teledyne's customers with a focal point for the specialized energy generation, energy storage and small propulsion products that Teledyne manufactures, primarily for high-reliability aerospace and defense applications. Product lines in this segment include hydrogen generators, fuel cells, thermoelectric generators, batteries and small turbine engines. In addition to these changes, the System Engineering Solutions segment has been renamed Engineered Systems to better describe its programs.