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Rolls-Royce wins ?40 million Gem support contract

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Rolls-Royce Plc
: 07 September, 2006  (New Product)
Rolls-Royce wins £40 million Gem support contract
07 September 2006

Rolls-Royce has won a £40 million contract to support Gem engines powering the UK Ministry of Defence's (MoD) fleet of Lynx helicopters, marking a further success for the company's Mission Ready Management Solutions (MRMS®) services activity.

Rolls-Royce will overhaul engine modules at the company's facility at Ansty, supported by Rolls-Royce personnel at Yeovilton and Bristol, and also provide spare parts.

This initial contract, which also includes an incentive for Rolls-Royce to reduce costs for support activity, will run for two years and is seen as the first step towards an agreement from 2008 which will provide a guaranteed level of 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 to full engine availability-based support in 2008, highlights that our customer at the MoD has embraced the mutual benefits of this new way of working.'

Hagen Helm, Senior Vice President of Helicopters at Rolls-Royce Defence Aerospace said: 'This is a win:win agreement which benefits both the MoD and Rolls-Royce and most importantly, will improve the service to the Helicopter operators in the UK Armed Forces.'

Captain John Stratton (RN), Helicopter Engine IPT Leader said: 'The contract will enable improved support to the front line, mutual cost benefits and is a huge step forward to establishing a fully partnered approach to supporting all Rolls-Royce Helicopter engines.'

Rolls-Royce operates a number of MRMS contracts with the MoD already, under which there is an incentive to provide a guaranteed level of engine availability for aircraft such as the Typhoon, Tornado and the Nimrod, and an engine spares inclusive contract for the Gnome engine in the Sea King Helicopter fleet.

With the experience of managing over 2350 engines and 3350 modules under MRMS-style contracts, Rolls-Royce is a pioneer in partnered support and availability contracting.

Services account for 55 per cent of the revenues of the Defence Aerospace business of Rolls-Royce.

Over the last 12 months, Rolls-Royce has won MRMS contracts worth more than £400 million from the UK MoD.

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.

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 Steele

Head of Communications - Defence Aerospace

Rolls-Royce plc

Tel: +44 (0) 117 979 0991


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