Rolls-Royce Awarded $51 Million Production and Support Contract for U.S. Marine Corps Tanker Aircraft Engines

INDIANAPOLIS--(Business Wire)--
Rolls-Royce, the global power systems company, today announced a $51 million
engine production and MissionCare services contract with U.S. Naval Air Systems
Command (NAVAIR). The contract is in support of Rolls-Royce AE 2100D3-powered
KC-130J tanker aircraft, flown by the United States Marine Corps (USMC) and
exercises the first option year of a four-year contract with NAVAIR.

Dennis Jarvi, President Defense North America for Rolls-Royce, said:
"Rolls-Royce has been providing AE 2100D3 engines and support to the USMC
KC-130J program for more than seven years, accumulating more than 350,000 flight
hours and receiving consistently high customer ratings on MissionCare
performance."

"Rolls-Royce is committed to improving fleet readiness for the USMC, allowing
them to concentrate on performing their critical missions whenever they are
required."

MissionCare is a comprehensive engine-care program customized to meet the needs
of Rolls-Royce defense customers. The KC-130J MissionCare contract is truly
"power by the hour" - a single contract line item number is used to pay a fixed
price based on aircraft hours flown. Contract performance is measured almost
exclusively against the fleet-driven performance metric of engine availability.

Under the terms of the agreement, which is administered by NAVAIR at Naval Air
Station, Patuxent River, Maryland, Rolls-Royce will provide engines, engine
management, support, trouble shooting, parts supply and logistics support for
the aircraft, operating at three U.S. Marine Air Stations: Miramar, CA, Cherry
Point, NC and Okinawa, Japan.

NOTE TO EDITORS

1
Rolls-Royce, a world-leading provider of power systems and services
for use on land, at sea and in the air, has established a strong
position in global markets - civil aerospace, defence aerospace,
marine and energy.
2
As a result of this strategy, Rolls-Royce today has a broad customer
base comprising more than 600 airlines, 4,000 corporate and utility
aircraft and helicopter operators, 160 armed forces, more than 2,000
marine customers, including 70 navies, and energy customers in nearly
120 countries, with an installed base of 54,000 gas turbines.
3
Rolls-Royce employs over 38,000 skilled people in offices,
manufacturing and service facilities in 50 countries. The Group has a
strong commitment to apprentice and graduate recruitment, and to
further developing employee skills.
4
In 2009, Rolls-Royce invested £864 million on research and
development, two thirds of which had the objective of further
improving the environmental aspects of its products, in particular the
reduction of emissions.
5
Annual underlying revenues were £10.1 billion in 2009, of which about
half came from services revenues. The firm and announced order book
stood at £58.3 billion at 31 December 2009, providing visibility of
future levels of activity.
6
The AE 2100D3 is a lightweight, modular turboprop engine with 4,600
shaft-horsepower. The “common core” AE engine line is produced by
Rolls-Royce and manufactured in Indianapolis, IN. Along with the AE
3007 and AE 1107C-Liberty, the proven engine line has totaled more
than 21 million hours of service.
7
Rolls-Royce has services agreements in place with all branches of the
U.S. military, including the Air Force, Marines, Army and Navy, plus
the Coast Guard.
8
The C-130 has been the U.S. Department of Defense’s primary tactical
transport and special mission aircraft since 1956, powered by
Rolls-Royce T56 engines. The “J” version of the aircraft, powered by
AE 2100D3 engines, continues that legacy.

Rolls-Royce Corporation
Indianapolis, IN
Karin Ricketts
317-230-8774; mobile, 317-459-7542
karin.ricketts@Rolls-Royce.com
www.rolls-royce.com

Copyright Business Wire 2010