second quarter ending March 31 2001.

Net income increased by 35 percent from $853.6 million to $1.16 billion and diluted earnings per share rose to 65 cents, a 30 percent increase over the same quarter in 2000.

Sales for the quarter rose 26 percent to $8.9 billion, compared with $7.07 billion last year.

The first half of the fiscal year 2001 income before non-recurring items, extraordinary items and the cumulative effect of accounting change rose to $2.16 billion. This represents $1.22 per diluted share which is a 27 percent increase over last year's figure of 96 cents.

Revenues for this period increased to $16.92 billion which is 23 percent higher than $13.71 billion achieved last year.

Dennis Kozlowski, chairman and chief executive officer, said: "The results achieved this quarter by each of our operating units are a tribute to the fundamental strength of our businesses.

"We have demonstrated that even in the face of a slowing economy our recurring revenue base, long term contracts and geographic diversity can provide a steady and predictable revenue and earnings stream, and the cash flow required to fuel future growth.'' Of the company's five business segments only one did not show an increase in sales and operating profits over the same period last year. Mr. Kozlowski said: "Growth in our economically resilient recurring revenue base remains brisk at our Security, Fire and Earth Tech businesses. Our Healthcare operations continue to grow through favourable demographics, geographical expansion and new product introductions.

"TyCom's (telecommunications) backlog of third party sales is stronger than we had anticipated, and the build-out of the TyCom Global Network is ahead of schedule. While the Electronics segment will continue to be impacted by weakness in certain of its end markets, we believe the diversity of our offerings in this area leaves us better prepared to weather the current environment and we see continued opportunities to improve manufacturing efficiencies.'' He also said the company looked forward to a positive impact from recent acquisitions and added: "We are excited about the pending acquisition of the CIT Group and the opportunities it will provide for us upon completion.

Integration planning for a smooth transition is well underway.'' Tyco International is a diversified manufacturing and service company. Its businesses include manufacture and service of electrical and electronic components; design, manufacture, installation and service of undersea telecommunications systems; manufacture, installation and provision of fire protection systems and electronic security services; manufacture of flow control valves.

It also works in the fields of disposable medical products, diagnostic imaging, bulk pharmaceuticals, wound closure, plastics and adhesives. It operates in more than 100 countries.