Rolls-Royce to power demonstrator for DD(X);Enters US Navy large gas turbine market

London, February 13 -- 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 US$25 million and is part of a US$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 program, 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.

Note to editors:

Downloadable pictures of the MT30 are available on http://www.rolls-royce.com/latestnews/images/thumbnails29.htm

Rolls-Royce plc operates in four growth markets - civil aerospace, defense aerospace, marine and energy. It is a global company investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.

The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. As a result, engine deliveries have grown to a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base consisting of more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 39,000 people worldwide, including 23,500 in the UK, 5,000 in the rest of Europe and 8,000 in North America.

Most of the engines in service will have operational lives of 25 years or more, generating an assured aftermarket demand for the provision of spare parts and services. The company's strategy is to maximize aftermarket revenues through the development of a comprehensive services capability.

Annual sales total around £6 billion of which over 40 per cent currently comes from aftermarket services. The order book stands at more than £17 billion, which, together with aftermarket demand, provides visibility as to future activity levels.

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 http://www.rolls-royce.com/

Mia Walton, Vice President, Corporate Communications, Rolls-Royce North America, Tel: +1-703 621 2709, Fax : +1-703 709 6087, Email mia.walton@rolls-royce.com