Teledyne Annual Report 2007

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FY2007 Annual Report · Teledyne

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Technology for a changing world

T e l e d y n e T e c h n o l o g i e s i n c o r p o r aT e d

2 0 0 7 a n n u a l r e p o r T

Sales (In millions)

17.9%

2003 2004 2005 2006 2007

Diluted Earnings per Share

31.5%

2003 2004 2005 2006 2007

GAAP Operating Margin

$1,622

$1,433

$1,207

$1,017

$ 841

$2.72

$2.26

$1.85

$1.24

$0.91

10.0%

8.7%
8.3%

6.6%
5.6%

2003 2004 2005 2006 2007

Teledyne Technologies Incorporated AnnuAl RepoRt 2007

2 0 0 7 F i n a n c i a l H i g H l i g H t s

Selected Consolidated Financial Data
(In millions, except per-share data)

Summary Financial Information

Sales

Net income

2007

2006

2005

2004

2003

$ 1,622.3

$ 1,433.2

$ 1,206.5

$ 1,016.6

$ 840.7

$ 98.5

$ 80.3

$ 64.2

$ 41.7

$ 29.7

Diluted earnings per share

$ 2.72

$ 2.26

$ 1.85

$ 1.24

$ 0.91

Weighted average diluted common

shares outstanding

36.2

35.5

34.7

33.7

32.7

Summary Balance Sheet Data

Cash and cash equivalents

$ 13.4

$ 13.0

$ 9.3

$ 11.4

$ 37.8

2007

2006

2005

2004

2003

Working capital

Total assets

Long-term debt and

$ 213.7

$ 216.4

$ 154.0

$ 124.4

$ 129.5

$ 1,159.4 $ 1,061.4 $ 728.2

$ 624.8

$ 433.6

capital lease obligations

$ 142.4 $ 230.7 $ 47.0

$ 74.4

$ —

Stockholders’ equity

$ 530.2

$ 431.8

$ 326.0

$ 262.1

$ 221.0

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the “Notes to Consolidated
Financial Statements” in this 2007 Annual Report on Form 10-K for additional information regarding Teledyne Technologies
Incorporated financial data.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

66%

19%

11%

Electronics and Communications Segment
Engineered Systems Segment
Aerospace Engines and Components Segment
Energy and Power Systems Segment

Defense electronics businesses provide
a range of highly specialized electronic
subsystems to our government, as well as
other defense contractors

Selected Products / Services

• Integrated microwave assemblies
• Harsh environment interconnects
• Infrared and visible light imaging sensors

Sales by Segment

O p e r a t i O n s

a t a G l a n c e

Defense Electronics

Overview

27%

Instrumentation

27%

Instrumentation provides power to subsea
drilling systems, helps locate new energy reserves,
reports subtle changes to the environment, and
detects trace contaminants in air and water

• Harsh environment interconnects
• Acoustic Doppler water current profilers
• Hydrophones and streamer cables
• Emissions monitoring instrumentation

Electronics (Avionics & Other)

12%

Engineered Systems

Aircraft information management solutions are
designed to increase flight safety and efficiency of
aircraft transportation. In addition, alongside our
defense electronics, we produce precision electronics
for other commercial markets

• Wireless aircraft data acquisition systems
• Electronic Flight Bags (EFBs)
• Commercial microwave subsystems

Within the Engineered Systems segment, our
products and services center on protecting America,
expanding national interests in space, and improving
environmental safety

• Missile defense systems engineering
• Space hardware and engineering services
• Chemical, biological, radiological and nuclear,

(CBRN) systems and services

19%

Aerospace Engines and Components

In business for over 100 years, Teledyne
Continental Motors provides piston
engines for a number of today’s most popular
general aviation aircraft

• Aircraft piston engines for OEM aircraft
• Aftermarket engines, parts and service
• Digital electronic engine control systems

11%

Energy and Power Systems

We provide highly reliable power and propulsion
systems primarily for aerospace and defense
applications, as well as high purity hydrogen
generation systems

• Power systems for government applications
• Aircraft piston engines and spare parts
• Military small turbine engines
• Small turbine engines for military applications
• GillTM brand aerospace batteries
• Gill brand general aviation batteries
• Hydrogen gas generators
• Digital electronic engine control systems

Teledyne Technologies Incorporated ANNuAL RepORT 2007

t O O Ur s t OcK H OlDe r s

oday’s world is faced with rising energy prices, heightened pollution
concerns, turbulent financial markets and uncertainty about the
domestic and global economies. However, I believe Teledyne remains
well positioned, with significant operations leveraged to aerospace
and defense, offshore energy exploration and production, and
environmental monitoring markets.

In fiscal 2007, we achieved record sales, earnings per share and free cash flow by
continuing to focus on operational excellence and strengthening our core businesses:

u Sales increased 13.2% to $1.62 billion
u earnings per share grew 20.4% to $2.72
u Free cash flow was $126.4 million, an increase of 143%*
u The market value of our common stock increased 33.3%

Over the last five years, we have continually improved the operating performance and
expanded the margins in our existing and acquired businesses:

u Revenue has grown at a compounded rate of 17.9% since 2003
u earnings per share have grown at a compounded rate of 31.5%
u Operating margin has grown 441 basis points to 10.0% in 2007

During the same period, we have expanded and strengthened our core businesses
in defense electronics and instrumentation by developing new products, improving
sales channels and by acquiring strong companies that have added new, innovative
products and increased our management depth. Teledyne is now recognized as a
leader in our markets, and our customers are increasingly relying on us to provide
more complete solutions for their demanding applications.

Added Capabilities in Defense Electronics and Engineered Systems
Our defense electronics revenue continued to grow in 2007 to $447 million. The
investments we have made in highly integrated microwave subsystems resulted in new
orders for electronic warfare and radar systems. We have also won several projects

* The company defines free cash flow as cash provided by operating activities less capital expenditures for property,
plant and equipment. For a reconciliation to GAAp, see “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in our Form 10-K.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

for both the ground and space-based portions of new satellite systems. Customer
requirements for modules used in systems to counteract improvised explosive devices
(IeDs) grew significantly during the year and we have made investments at two of our
facilities to keep up with the demand.

On June 20, 2007, we acquired Tindall Technologies Inc., a manufacturer of
specialized military receivers and frequency measurement subsystems to further

Cumulative Total Stockholder Return

The graph set forth below shows the cumula-
tive total stockholder return (i.e., price change plus
reinvestment of dividends) on our common stock
from our fiscal year end December 29, 2002 through
our fiscal year end December 30, 2007, as compared
to the Standard & Poor’s 500 Composite Index, the
Russell 2000 Index and the Dow Jones World
Aerospace & Defense Index.

The graph assumes that $100 was invested on

December 27, 2002.

In accordance with the rules of the Securities
and Exchange Commission, this presentation is not
incorporated by reference into any of our registration
statements under the Securities Act of 1933.

400

350

300

250

200

150

100

12/29/02

12/28/03

01/02/05

01/01/06

12/31/06

12/30/07

12/29/02 12/28/03 01/02/05 01/01/06 12/31/06 12/30/07

Teledyne Technologies

100

130

196

193

267

356

Dow Jones World
Aerospace & Defense

Russell 2000

S&P 500 Composite

100

129

146

127

156

174

143

189

182

150

234

215

174

285

213

185

enhance our ability to provide our
customers with more comprehensive
microwave subsystems. On December
31, 2007, we completed the
acquisition of Storm products Co.,
a leading manufacturer of specialty
wire, cable and interconnect products
for harsh environment applications.
Storm’s microwave cables are used
widely by defense electronics
companies that also buy many of our
defense microwave components and
subsystems as well as our high voltage
connectors and cables. We expect that
operating under the Teledyne brand
will open additional opportunities
at defense prime contractors. Storm
also manufactures subsea cables that
are complementary to our Teledyne
Marine businesses.

Teledyne Scientific & Imaging, LLC,
won several new programs that should
provide us with the technological base
for future products. We were notified
by the Defense Advanced Research
projects Agency (DARpA) that we had
been selected for a phase IV contract
to develop a Chip Scale Atomic Clock.
under this contract, which is expected
to start in early 2008, we will build
ruggedized versions of miniature

atomic clocks designed to provide precise time to battlefield and airborne systems
as part of the united States Government’s expanding focus on robust positioning,
navigation and timing.

We were very pleased to be selected by the united States Air Force for High Stare, a
$15.5 million five-year program to advance the state-of-the-art of infrared sensors for

Teledyne Technologies Incorporated ANNuAL RepORT 2007

future missile warning and missile defense space systems. Teledyne is already a leader
in very high performance infrared imaging sensors based on Mercury Cadmium
Telluride semiconductors, and this important new program will significantly expand
our capabilities.

On February 1, 2008, we acquired assets of Judson Technologies, LLC to broaden our
capabilities in infrared imaging for both defense and commercial applications. This
acquisition will provide us with a highly complementary range of infrared sensors,
including Indium Gallium Arsenide based subsystems, allowing us to address growing
military, security and scientific markets.

Teledyne Brown engineering’s decades long history of support to NASA’s Marshall
Space Flight Center continued in 2007. Along with NASA, our focus has begun
shifting towards space exploration and the development of new launch systems. We
were awarded several new task orders to provide payload development, operations,
and science technology research for the next several years. One of the key tasks
is development of the Roll Control System for the Ares I-X test flight vehicle, an
effort that expanded our work into the field of propulsion system development. We
were also pleased to be selected by NASA for requirements definition, design and
manufacturing process development for the next Crew Launch Vehicle.

Our focus on development and manufacturing of specialized systems was also
reflected in two new awards in the chemical, biological, radiological and nuclear
fields, also known as CBRN. We were selected to design a state-of-the-art test
chamber for biological warfare agent detection systems, and were subsequently
awarded a contract for development and production of a system that will be used
to remove toxic contamination from sensitive electronic equipment, command posts
and aircraft.

In July, Segment president Jim Link announced his planned retirement after
successfully leading Teledyne Brown engineering since 2001, following a
distinguished 33 year career with the u.S. Army. Jim was succeeded by Rex Geveden
who was the Associate Administrator of NASA. Rex had a proven track record at
NASA and, since joining Teledyne, has been working closely with me on strategies
to build on Teledyne Brown’s successful history by focusing on our strengths in
developing highly engineered systems for our customers in the Department of
Defense and NASA.

As part of this strategy, in late 2007 we realigned some of our businesses under Rex
in a new reporting segment called energy and power Systems. This segment, which
includes Teledyne energy Systems, Inc., Teledyne Turbine engines and Teledyne
Battery products, provides 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.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

Booming Market for Offshore Oil and Gas Exploration and Production
The market for our products for offshore oil and gas exploration and production was
very strong throughout the year, driven by limitations on existing reserves and the
move to ever deeper waters where only the most capable and reliable technologies
are acceptable. We expect that long-term demand for oil and gas for China and
India, coupled with the global political instability in oil producing regions, will drive
investments in offshore exploration and production for the foreseeable future.

The offshore industry makes extensive use of Remotely Operated Vehicles (ROVs).
The top four vehicle manufacturers have adopted our Doppler Velocity Logs as
standard navigation instrumentation and have each placed long-term blanket orders
with us.

Demand for hydrophone arrays that are towed behind ships for offshore seismic
exploration remained solid. While sales levels in this business tend to be lumpy,
as customers place large orders to outfit new ships, we believe that we remain
well positioned through at least 2008 and 2009. During 2007 we worked with
key customers to introduce next-generation products and these have now entered
production or will do so in early 2008.

We experienced high growth in sales of wet-mateable electrical and fiber optic
connectors and cable assemblies used for interconnect systems on subsea wellheads.
At deeper water levels, the distribution systems that support the wellheads become
increasingly complex. Increased use of fiber optics and expanded power requirements
have had a favorable impact on our sales.

On March 30, 2007, we acquired assets of D.G. O’Brien, Inc., and, on December
31, 2007, we completed the acquisition of Impulse enterprise to complement
Ocean Design, Inc. and provide us with a much broader range of harsh environment
electrical and optical interconnects for offshore oil, ocean science and defense
applications. Our subsea interconnect products now include ODI’s unique wet-
mateable optical and electrical connectors, D.G. O’Brien’s glass-to-metal-seal
connectors and penetrators that are designed to withstand the high pressures of deep
water, and Impulse’s molded neoprene and glass-reinforced epoxy connectors and
cables that are used in a broad range of subsea applications.

Global Concerns about the Earth’s Climate and Environment
Teledyne’s instruments and sensors are designed to accurately monitor the earth’s
land, sea and air to protect our environment and help scientists understand changes
in our climate. Our range of such products and applications is one of the broadest in
the world. These include precision infrared sensors that monitor the atmosphere from
space, instruments that measure ocean currents and waves, trace gas analyzers used to
monitor air quality, wastewater samplers and flow meters, and laboratory instruments
that are used to measure organic and inorganic contaminants in soil and water.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

The market for our ambient air monitoring instruments in China was at a record
level in 2007, driven in part by preparations for the 2008 Beijing Olympics. We also
experienced strong orders for our water samplers and flow meters because of both
increasing demand for water resources in developing nations, and aging infrastructure
in North America and europe. We are now completing development of both visible
light and infrared sensors for NASA’s new Orbiting Carbon Observatory, which is
scheduled to launch in 2008. This satellite will provide precise global measurement of
atmospheric carbon dioxide.

Propulsion Systems and Avionics for Commercial Aviation
Teledyne Continental Motors (TCM) was selected to provide the aircraft engine
for Cessna’s new Skycatcher Light Sport Aircraft. This represents our first OeM
installation in a Cessna aircraft in many years. Cessna has announced that they have
received orders for more than 850 such Light Sport Aircraft.

We also experienced management succession at Teledyne Continental Motors this
year when Bryan Lewis retired after 15 years as president of TCM and 27 years of
service with Teledyne. Bryan’s experience and leadership will be missed, but we are
fortunate to have Rhett Ross, previously president of Teledyne energy Systems, Inc.,
as a strong successor for Bryan.

Orders for avionics equipment used by airlines grew significantly in 2007, paced by
our Wireless GroundLink® system that uses cellular telephone infrastructure and the
internet to automate transmission of flight data. We now have 40 airline customers
for this system, 15 of which were new in 2007. We also commenced production
deliveries of our new electronic Flight Bag systems to air freight and airline
customers. These systems reduce paper in the cockpit and allow documentation to
be kept up-to-date.

Looking Ahead
The world is changing and I believe Teledyne is well positioned to prosper by
providing unique technologies that anticipate our customers’ evolving needs in
vital markets. Whether the requirement is to protect the earth’s climate, maintain
national security, or find and develop oil resources, Teledyne’s products provide
the reliability, precision and performance that our customers require for their
demanding applications.

Chairman, president and Chief executive Officer
Teledyne Technologies Incorporated

February 27, 2008

Teledyne Technologies Incorporated ANNuAL RepORT 2007

Teledyne’s scientists and engineers develop some of the world’s most sensitive infrared imaging sensors and ultra high-speed

signal processing devices, which we fabricate in our modern clean rooms.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

Applications for

our defense technology and

engineered systems cover all of

the military services and include the

F-35 Joint Strike Fighter, National Missile

Defense and the Virginia class submarine.

We also provide unique components for

systems that counteract improvised

explosive devices and for secure

battlefield communication

systems.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

Teledyne’s instruments and sensors accurately monitor
the earth’s land, sea and air to protect our environment
and help scientists understand changes in our climate.
Our range of such products and applications is one of
the broadest in the world.

The Earth’s climate is very
sensitive to changes in solar
radiation. Solar observato-
ries employ Teledyne’s
visible and infrared light
sensors to analyze the solar
magnetic field, which is key
to understanding the energy
output from the sun.

We are a leading supplier
of permanent and portable
samplers that environmental
engineers use to collect and
preserve storm water runoff
and wastewater samples for
subsequent laboratory analysis.
We also manufacture sensitve
instruments that are used in the
laboratories to analyze water
and soil samples for organic
and inorganic contamination.

Our precision environmental
instruments continuously
monitor levels of pollutant
gases such as carbon dioxide,
sulfur dioxide and ozone. They
are used by environmental
agencies in ambient air quality
systems (a) and to measure
emissions from power genera-
tion facility smokestacks (b).

(b)

(a)

EPA

We help protect precious water
resources by manufacturing
instruments that use acoustic
Doppler technology to
accurately measure the flow
rate of water in rivers, streams,
sewers and irrigation channels.

Our unique wet-mateable
fiber optic and electrical
connectors allow divers or
remotely operated vehicles
to connect scientific instru-
ments to network gateways
for ocean observatories.

Teledyne makes a broad range

of high resolution infrared and

visible light sensors for

satellites and spacecraft.

Climate monitoring applications

include profiling of carbon and

ozone in the atmosphere and

remote sensing of clouds.

NASA uses our sensors on aircraft

that monitor both infrared and

visible light wavelengths to detect

changes in the atmosphere and

monitor the Earth’s surface. The

collected data have applications in

oceanography, environmental

science, soil and land management

and agriculture.

Teledyne’s acoustic

modems provide

underwater

communication to

subsea sensors and

vehicles. Data may

then be linked to

land or satellites by

gateway buoys.

Ocean scientists are making

increasing use of autonomous

underwater vehicles in

research projects. Teledyne’s

technologies are used on

these vehicles for navigation,

current measurement and

acoustic communication.

Our novel sidescan sonar

systems are towed behind

ships or installed in

underwater vehicles to

provide high-resolution,

three dimensional images

of the seafloor.

Teledyne’s acoustic Doppler instruments help

scientists better understand our oceans by

providing detailed profiles of ocean currents

and waves. Our unique broadband designs

provide high resolution data.

Our buoyant instrument housings, that can

withstand the high pressure at full ocean depth,

are used by scientists throughout the world.

When a subsea project is completed, a signal

is sent to our acoustic releases to allow the

instruments to float to the surface.

The Earth’s climate is very

sensitive to changes in solar

radiation. Solar observato-

ries employ Teledyne’s

visible and infrared light

sensors to analyze the solar

magnetic field, which is key

to understanding the energy

output from the sun.

We are a leading supplier

of permanent and portable

samplers that environmental

engineers use to collect and

preserve storm water runoff

and wastewater samples for

subsequent laboratory analysis.

We also manufacture sensitve

instruments that are used in the

laboratories to analyze water

and soil samples for organic

and inorganic contamination.

Our precision environmental

instruments continuously

monitor levels of pollutant

gases such as carbon dioxide,

sulfur dioxide and ozone. They

are used by environmental

agencies in ambient air quality

systems (a) and to measure

emissions from power genera-

tion facility smokestacks (b).

(b)

(a)

EPA

We help protect precious water

resources by manufacturing

instruments that use acoustic

Doppler technology to

accurately measure the flow

rate of water in rivers, streams,

sewers and irrigation channels.

Our unique wet-mateable

fiber optic and electrical

connectors allow divers or

remotely operated vehicles

to connect scientific instru-

ments to network gateways

for ocean observatories.

Teledyne Technologies Incorporated ANNuAL RepORT 2007
Teledyne Technologies Incorporated ANNuAL RepORT 2007

Teledyne makes a broad range
of high resolution infrared and
visible light sensors for
satellites and spacecraft.
Climate monitoring applications
include profiling of carbon and
ozone in the atmosphere and
remote sensing of clouds.

NASA uses our sensors on aircraft
that monitor both infrared and
visible light wavelengths to detect
changes in the atmosphere and
monitor the Earth’s surface. The
collected data have applications in
oceanography, environmental
science, soil and land management
and agriculture.

Teledyne’s acoustic
modems provide
underwater
communication to
subsea sensors and
vehicles. Data may
then be linked to
land or satellites by
gateway buoys.

Ocean scientists are making
increasing use of autonomous
underwater vehicles in
research projects. Teledyne’s
technologies are used on
these vehicles for navigation,
current measurement and
acoustic communication.

Our novel sidescan sonar
systems are towed behind
ships or installed in
underwater vehicles to
provide high-resolution,
three dimensional images
of the seafloor.

Teledyne’s acoustic Doppler instruments help
scientists better understand our oceans by
providing detailed profiles of ocean currents
and waves. Our unique broadband designs
provide high resolution data.

Our buoyant instrument housings, that can
withstand the high pressure at full ocean depth,
are used by scientists throughout the world.
When a subsea project is completed, a signal
is sent to our acoustic releases to allow the
instruments to float to the surface.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

The offshore oil and gas exploration market was robust throughout 2007. We significantly expanded our line of subsea

connectors and cable assemblies via the acquisition of three complementary companies, allowing Teledyne to be a

single source for interconnect solutions for our customers’ harsh environment applications.

Executive Management

Segment Presidents

Stockholder Information

Teledyne Technologies Incorporated ANNuAL RepORT 2007

roberT mehrabian*
Chairman, President and
Chief Executive Officer

rex d. geveden*
President
Teledyne Brown Engineering, Inc.

rheTT c. ross
President
Teledyne Continental Motors, Inc.

John T. kuelbs*
Executive Vice President,
General Counsel and Secretary of the
Board of Directors

dale a. schniTTJer*
Senior Vice President and
Chief Financial Officer

ivars r. blukis
Chief Business Risk
Assurance Officer

susan l. main*
Vice President and Controller

robyn e. mcgowan
Vice President, Administration,
Human Resources and Assistant
Secretary

aldo (al) pichelli*
President and Chief Operating
Officer, Electronics and
Communications Segment

melanie s. cibik
Vice President, Associate General
Counsel and Assistant Secretary

kevin J. riley
President
Teledyne Scientific & Imaging, LLC

* Section 16 Officer

roberT l. schaefer
Associate General Counsel and
Assistant Secretary General Counsel
Electronics and Communications
Segment

roberT w. sTeenberge
Vice President and
Chief Technology Officer

Jason vanwees
Vice President,
Corporate Development
and Investor Relations

aldo (al) pichelli
Electronics and
Communications Segment

rex d. geveden
Engineered Systems
Segment and Energy and
Power Systems Segment

rheTT c. ross
Aerospace Engines and
Components Segment

corporaTe offices
Teledyne Technologies Incorporated
1049 Camino Dos Rios
Thousand Oaks, CA 91360
Telephone: (805) 373-4545
Fax: (805) 373-4775
www.teledyne.com

Transfer agenT and regisTrar
BNY Mellon Shareowner Services
480 Washington Boulevard
Jersey City, NJ 07310
(888) 540-9867

sTockholder publicaTions -
form 10-k
Annual reports (including Form 10-K)
and proxy statements are mailed to
all stockholders of record. Copies of
our SEC periodic reports, corporate
governance guidelines, codes of
ethics and committee charters are
also available on our web site at
www.teledyne.com. For additional
information, contact Corporate Com-
munications or Investor Relations.

sTock exchange lisTing
The common stock of Teledyne
Technologies Incorporated is traded
on the New York Stock Exchange
(symbol TDY).

annual meeTing
The annual meeting of stockholders
will be held on Wednesday, April 23,
2008, at 9:00 a.m. PDT, at Teledyne
Technologies Incorporated, 1049
Camino Dos Rios, Thousand Oaks,
CA 91360.

independenT audiTors
Ernst & Young LLP
Los Angeles, California

currenT news and
general informaTion
Information about Teledyne is
available at www.teledyne.com.

Teledyne Technologies Incorporated ANNuAL RepORT 2007

Directors

roxanne s. ausTin (1)(2)
Former President and
Chief Operating Officer
DIRECTV, Inc.

simon m. lorne (1)(2)
Vice Chairman and Chief
Legal Officer
Millennium Management LLC

roberT p. bozzone (1)(3)
Former Chairman,
Allegheny Technologies
Incorporated

frank v. cahoueT (1)(2)
Retired Chairman and Chief
Executive Officer, Mellon
Financial Corporation

charles crocker (2)(3)
Chairman and CEO,
Crocker Capital and Retired
Chairman and CEO,
BEI Technologies, Inc.

kenneTh c. dahlberg (1)(3)
Chairman of the Board
and CEO of Science
Applications International
Corporation (SAIC)

roberT mehrabian
Chairman, President and
Chief Executive Officer,
Teledyne Technologies
Incorporated

paul d. miller (1)(2)
Retired Chairman, Alliant
Techsystems, Inc.

michael T. smiTh (2)(3)
Retired Chairman and Chief
Executive Officer, Hughes
Electronics Corporation

wesley w. von schack (2)(3)
Chairman, President and
Chief Executive Officer
Energy East Corporation

(1) Audit Committee
(2) Nominating and Governance Committee
(3) Personnel and Compensation Committee

Form 10-K

Teledyne Technologies Incorporated

Forward-Looking Statements Cautionary Notice

This annual report contains forward-looking statements as defined in the private Securities Litigation

Reform Act of 1995, relating to earnings, growth opportunities, product sales, capital expenditures,

pension matters, stock option compensation expense, taxes and strategic plans. Actual results could

differ materially from these forward-looking statements. Many factors, including changes in demand

for products sold to the defense electronics, instrumentation, energy exploration and production,

commercial aviation, semiconductor, and communications markets, funding, continuation and

award of government programs, continued liquidity of our customers (including commercial aviation

customers) and economic and political conditions, could change the anticipated results. In addition,

financial market fluctuations affect the value of the Company’s pension assets.

Global responses to terrorism and other perceived threats increase uncertainties associated with
forward-looking statements about our businesses. Various factors could realign government

programs, and affect the composition, funding or timing of our programs. Flight restrictions would

negatively impact the market for general aviation aircraft piston engines and components. Changes

in the leadership of the u.S. Government could result, over time, in reductions in defense spending

and further changes in programs in which the Company participates.

The Company continues to take action to assure compliance with the internal controls, disclosure

controls and other requirements of the Sarbanes-Oxley Act of 2002. While the Company believes its

control systems are effective, there are inherent limitations in all control systems, and misstatements

due to error or fraud may occur and not be detected.

While Teledyne’s growth strategy includes possible acquisitions, the Company cannot provide any

assurance as to when, if, or on what terms any acquisitions will be made. Acquisitions involve

various inherent risks, such as, among others, our ability to integrate acquired businesses, retain

customers and achieve identified financial and operating synergies.

Additional information concerning factors that could cause actual results to differ materially from

those projected in the forward-looking statements is contained in Teledyne’s periodic filings with the

Securities and exchange Commission, including its 2007 Annual Report on Form 10-K. Forward

looking statements are generally accompanied by such words as “estimates”, “project”, “predict”,

“believes” or “expect”, that convey the uncertainty of future events or outcomes. The Company

assumes no obligation to publicly update or revise any forward-looking statements, whether as a

result of new information or otherwise.

1049 Camino Dos Rios • Thousand Oaks, California 91360 • 805.373.4545 • fax 805.373.4775 • www.teledyne.com