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Rolls-Royce Announces Two New Joint Venture Companies

9 August 2000

Rolls-Royce Announces Two New Joint Venture Companies

    LONDON - Rolls-Royce plc, the aerospace, marine and energy group, and Sequa 
Corporation, through its subsidiary, Chromalloy Gas Turbine Corporation, have 
signed agreements to form two new joint venture companies, representing a total 
investment of 44 million pounds sterling between the partners.

    Turbine Surface Technologies Ltd will provide advanced technology coatings
for Rolls-Royce turbine components.  The company, which is scheduled to begin
operations in 2001, will be based in a new purpose-built facility in Sherwood
Park, Nottingham, an enterprise action zone close to Rolls-Royce in Derby.
The facility will eventually employ up to 170 people.

    John Halstead, Managing Director, Turbine Systems for Rolls-Royce plc
said:  "The Coatings process is vitally important in the production of world
class turbine components, and I am confident that this new partnership will
allow us to share technology and expertise to maintain our leading position in
this competitive marketplace."

    Rolls-Royce has also formed a partnership with Chromalloy to provide
advanced aero engine component repair services on RB211, Tay and Trent
engines.

    Turbine Repair Technologies Ltd will be based at Chromalloy's existing
facility in Somercotes, Derbyshire, and will employ up to 170 people.
Production for the new venture is scheduled to begin next month.

    Ian Lloyd, Managing Director, Aero Repair and Overhaul, for Rolls-Royce
said:  "Chromalloy is among the leading repair companies and this joint
venture allows us to pool our expertise and resources to provide enhanced
repair services to our customers.  Rolls-Royce has placed great emphasis on
expanding its range of aftermarket services and this is a significant
development."

    Dr. Martin Weinstein, Chairman and CEO, Chromalloy Gas Turbine
Corporation, said:  "Chromalloy is delighted to partner with Rolls-Royce in
these ventures through which the customers of both companies will benefit from
the sharing of complementary expertise and knowledge in the implementation and
development of the turbine coatings and advanced repairs."

    Rolls-Royce plc is a global company providing power on land, sea and air.
The company has established leading positions in civil aerospace, defence,
marine and energy markets. Its core gas turbine technology has created one of
the broadest product ranges of aero engines in the world, with 55,000 engines
in service in over 150 countries. Customers include more than 500 airlines,
2,400 corporate and utility operators and 160 armed forces, using both fixed
and rotary wing aircraft.

    Rolls-Royce is the global leader in marine power systems with a broad
product range and full systems integration capability. Over 2,000 marine
customers and more than 30 navies use Rolls-Royce propulsion.  The company is
investing in new products and capabilities for energy markets which include
the oil and gas industry and power generation.  It also develops its own power
projects through Rolls-Royce Power Ventures Ltd.

    Rolls-Royce pioneered gas turbine technology for aerospace, power
generation and marine propulsion and is involved in the major future
programmes in these fields.  These include the Trent aero and industrial
engines, the Eurofighter Typhoon and Joint Strike Fighter combat engines, the
WR21 marine engine and leading edge water jet propulsion systems.

    Chromalloy Gas Turbine Corporation, based in San Antonio, Texas, is the
leading independent supplier in the commercial jet engine component
aftermarket.  Chromalloy provides proprietary advanced repairs and new
replacement parts to the airline industry worldwide and also provides
component repair services for advanced military jet engines.  Chromalloy
operates more than 25 installations around the world, including two facilities
in the United Kingdom that presently employ 450 people.

    Chromalloy is the largest operating unit of Sequa Corporation, a
diversified technology company headquartered in New York whose other principal
operations include:  the production of solid and liquid propellent and rocket
motors for missiles and space; the manufacture of automotive airbag inflators;
the manufacture of specialty chemicals at a facility in the United Kingdom for
distribution to the international detergent market; the coating of metal coil
for building products and other uses; the manufacture of auxiliary printing
equipment, machinery for the two-piece can industry and automotive cigarette
lighters, among other operations.