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Re Contract

7th Sep 2006 13:52

7 September, 2006 ROLLS-ROYCE WINS ‚£40 MILLION GEM SUPPORT CONTRACT Rolls-Royce has won a ‚£40 million contract to support Gem engines powering theUK Ministry of Defence's (MoD) fleet of Lynx helicopters, marking a furthersuccess for the company's Mission Ready Management Solutions (MRMS‚®) servicesactivity.Rolls-Royce will overhaul engine modules at the company's facility at Ansty,supported by Rolls-Royce personnel at Yeovilton and Bristol, and also providespare parts.This initial contract, which also includes an incentive for Rolls-Royce toreduce costs for support activity, will run for two years and is seen as thefirst step towards an agreement from 2008 which will provide a guaranteed levelof engine availability at all times.Nick Durham, Director of Services at Rolls-Royce Defence Aerospace said:"This new partnership agreement, together with the intention to progress tofull engine availability-based support in 2008, highlights that our customer atthe MoD has embraced the mutual benefits of this new way of working."Hagen Helm, Senior Vice President of Helicopters at Rolls-Royce DefenceAerospace said: "This is a win:win agreement which benefits both the MoD andRolls-Royce and most importantly, will improve the service to the helicopteroperators in the UK Armed Forces."Captain John Stratton (RN), Helicopter Engine IPT Leader said: "The contractwill enable improved support to the front line, mutual cost benefits and is ahuge step forward to establishing a fully partnered approach to supporting allRolls-Royce helicopter engines."Rolls-Royce operates a number of MRMS contracts with the MoD already, underwhich there is an incentive to provide a guaranteed level of engineavailability for aircraft such as the Typhoon, Tornado and the Nimrod, and anengine spares inclusive contract for the Gnome engine in the Sea Kinghelicopter fleet.With the experience of managing over 2350 engines and 3350 modules under MRMS‚®-style contracts, Rolls-Royce is a pioneer in partnered support andavailability contracting.NOTE TO EDITORS 1. Services account for 55 per cent of the revenues of the Defence Aerospace business of Rolls-Royce. 2. Over the last 12 months, Rolls-Royce has won MRMS contracts worth more than ‚£400 million from the UK MoD. 3. The Lynx helicopter is in service in the UK with the Army and the Royal Navy. It is powered by two Rolls-Royce Gem engines. 4. In June, the Light Helicopter Turbine Engine Company (LHTEC), in which Rolls-Royce is a 50 per cent partner, announced that it had won a ‚£75 million contract from AgustaWestland to supply the CTS800-4 turboshaft engine for the British Armed Forces' Future Lynx helicopter. For further information please contact:Justine SteeleHead of Communications - Defence AerospaceRolls-Royce plcTel: +44 (0) 117 979 0991Email: [email protected] GROUP PLC

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