Re Contract

HONEYWELL AND ROLLS-ROYCE JOINT VENTURE CTS800-4 TURBOSHAFT ENGINE TO POWER FUTURE LYNX FOR UNITED KINGDOM ARMED FORCES PHOENIX / INDIANAPOLIS, June 22, 2006 -- The Light Helicopter Turbine Engine Company (LHTEC), a partnership between Honeywell and Rolls-Royce, today announced that the company has won a $140 million USD (£75 million) contract from AgustaWestland to supply the CTS800-4 turboshaft engine for the British Armed Forces' Future Lynx helicopter. The UK Ministry of Defence (MoD) has ordered 70 Future Lynx tactical transport and maritime helicopters from AgustaWestland to meet the requirements of the British Army Air Corps and Royal Navy. Powering the new Future Lynx will be two 1,361 shaft horsepower CTS800-4 turboshaft engines, offering a significant power improvement over the current Lynx helicopter engine. The CTS800-4 delivers a significant improvement in the helicopter's `hot and high' performance and coupled with reduced fuel flows, the engine expands the mission capability for the new helicopter. The Future Lynx Helicopter is expected to enter service in 2014, replacing the current Lynx helicopter fleet. The CTS800 is also currently undergoing flying testing with the AgustaWestland A129 attack helicopter. "The CTS800 engine provides the Future Lynx with reliable, affordable power, maximising mission effectiveness in the toughest of operating environments," said Nasos Karras, Vice-President of Honeywell's Helicopters business segment within its Defence and Space strategic business unit and LHTEC board member. "The extensive service life designed into the rotating components and its `on condition' maintenance management will also provide operators with significantly reduced direct maintenance and aircraft operating costs." "Honeywell, whose engines power the Chinook, and Rolls-Royce, whose engines power the Apache, Lynx, Sea King and Merlin, have a successful history of providing power for frontline British rotorcraft, and we are proud to continue supporting the UK armed forces through the CTS800-powered Future Lynx," added Scott Crislip, President of Rolls-Royce Helicopters & Small Gas Turbine Engines, and also LHTEC board member. The LHTEC CTS800-4 turboshaft engine is equipped with a full-authority digital engine control (FADEC) which reduces pilot workload and facilitates the engine's on-condition maintenance program. The LHTEC CTS800 also powers applications in Japan, the United States and Europe. These include the boundary layer control system of the ShinMaywa US-1A Kai amphibian, currently in development by the Japanese Navy; and the prototype of the Sikorsky X2 Technology high-speed compound rotorcraft, which is due to make its maiden flight by the end of the year. Growth versions of the T800/CTS800 engine include a 1,680 shp class version being offered for emerging civil and military applications. The Future Lynx Helicopter is based on the CTS800-powered Super Lynx 300, which is already in operation with the Royal Malaysian Navy, the Royal Thai Navy and the Royal Air Force of Oman. The type has also been ordered by the South African Air Force. Media Contacts: Justine Steele Head of Communications - Defence Aerospace Rolls-Royce Plc Tel: +44 117 979 0991 Email: Justine.steele@rolls-royce.com Website: www.rolls-royce.com Bill Reavis Dir., Media Relations Honeywell Aerospace Tel: 1 602-365-2055 Email: bill.reavis@Honeywell.com Website: www.honeywell.com George McLaren Senior Communications Manager Rolls-Royce Corp. Tel: 1 317-230-8260 Email: george.h.mclaren@rolls-royce.com Website: www.rolls-royce.com
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