Re Contract

February 13, 2003 ROLLS-ROYCE TO POWER DEMONSTRATOR FOR DD(X); ENTERS US NAVY LARGE GAS TURBINE MARKET The new Rolls-Royce MT30 marine gas turbine has been selected to power the Integrated Power System (IPS) Engineering Development Model (EDM) for the US Navy's DD(X) multimission destroyer programme. This order marks the company's entry into the US Navy large gas turbine market. Rolls-Royce will provide one 36 megawatt (MW) MT30 generator set to Northrop Grumman to drive the IPS EDM at the US Naval Surface Warfare Center Philadelphia Division Land Based Test Facility (LBTF). In addition, the Rolls-Royce 4MW AG9150 was selected to participate in a runoff with another 4MW generator set in conjunction with LBTF IPS testing. The total contract is worth $25 million and is part of a $2.9 billion contract awarded last year in which the US Navy designated Northrop Grumman as DD(X) lead design agent. 'The US Navy is seeking transformational technology. This is an opportunity to showcase how we have translated leading-edge, proven, aero engine technology into a unique marine power system. We are proud to team with Northrop Grumman to serve the US Navy,' said Patrick J. Marolda, President - Rolls-Royce Naval Marine Inc. Saul Lanyado, Rolls-Royce President - Marine, said: 'We are delighted to be selected for two prestigious defence programmes in a matter of weeks. The DD(X) announcement follows our recent selection to provide gas turbines for the two new Royal Navy aircraft carriers. We look forward to supporting both the US and the UK on projects that are crucial to their continuing effectiveness at sea.' The DD(X) EDM gas turbine generator set will be provided to Northrop Grumman in early 2005. The MT30 is expected to have more than 75 percent US content, and design, manufacture, assembly and testing of the generator set will be performed in the US. The AG9150 gas turbine was developed in Indianapolis and features nearly 100 percent US content. The 36MW MT30 has 80 percent commonality with the Trent 800 aero engine, which has won a market-leading 44 percent of the Boeing 777 programme, achieving more than two million flying hours since entering service in 1996. The MT30 is cost-effective and efficient compared to existing marine gas turbines operating over 25MW. It is available for service in either mechanical or electrical generator set applications for both commercial and naval marine markets. Offering improved power density and reliability, it is ideal for frigates, destroyers and aircraft carriers requiring high-powered propulsion. It is also ideal for cruise ships and fast ferries. Since a single MT30 can replace two conventional boost turbines, it saves space and reduces operating and ownership costs while giving propulsion system designers greater flexibility. The MT30 is the eleventh engine type Rolls-Royce has derived from core aero engine technology. Its modular construction, a key element of all Rolls-Royce gas turbine technology, combines reliability with maintainability. Downloadable pictures of the MT30 are available on http://www.Rolls-Royce.com/ latestnews/images/thumbnails29.htm For further information please contact: Gordon Welsh Head of Communications - Marine Rolls-Royce Tel 44 207 227 9127 Fax 44 207 227 9178 Email gordon.welsh@rolls-royce.com Web www.rolls-royce.com
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