RR Harrier Engine Upgrade

Rolls-Royce PLC
30 November 2000


ROLLS-ROYCE DELIVERS FIRST UPGRADED ENGINE 
FOR UK HARRIERS

Rolls-Royce today handed over the first Pegasus Mk107 engine to the Royal Air
Force only 11 months after winning a contract worth up to £350 million to
upgrade engines for the UK's Harrier aircraft. 

An initial firm order of £120 million provided for the upgrade of 40 engines
to the Mk107 standard.  An option to upgrade a further 86 engines is worth a
further £230 million to Rolls-Royce.  The first phase of the programme is
scheduled to be completed by 2004.

This contract was one of the first 'quick wins' for Smart Procurement,
delivering significant cost, performance and reliability improvements to the
RAF while ensuring the continued production of Pegasus engines for
Rolls-Royce.

Sue Lyons, Managing Director, Defence (Europe) for Rolls-Royce said:  'We are
very pleased to be handing over the Pegasus Mk107 today, only 11 months after
the signing of the contract with the UK Ministry of Defence.  The short time
from proposal to contract signature to this first delivery has only been
possible because of the tremendous teamwork between Rolls-Royce and the MoD's
Integrated Project Team.'

Air Commodore Al Smith, ES (Air)'s Harrier Integrated Project Team Leader,
added:  'This excellent example of Smart Procurement is a win for MoD and a
win for Rolls-Royce.'

The first engine will be installed in a development aircraft for flight
trials.  Further engine deliveries to support flight trials are scheduled for
early next year with main engine deliveries scheduled to begin in 2002.

The Mk107 is the latest standard of the Pegasus F402-RR-408 engine that has
been in production for the United States Marine Corps Harrier AV-8Bs for the
last eight years.  The Mk107 produces 23,800lb thrust - an increase of more
than ten per cent over the existing Mk105 fleet in operation with the RAF.


Note to editors:

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. 

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.

For more information please contact:

Maria Weber
PR Manager
Rolls-Royce plc.
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Martin Brodie
Head of Media Relations
Rolls-Royce plc
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