GBP60 Million Engine Component Contracts for Smiths Aerospace.

Business Editors

BURNLEY, England--(BUSINESS WIRE)--March 19, 2003

Smiths Aerospace has been awarded two long-term production contracts from Rolls-Royce plc valued at more than GBP60 million for engine components. The design and manufacturing for the contracts will take place

The first contract is for post production engine parts worth some GBP40 million over 5 years, with an option to extend thereafter. The contract covers fabricated assemblies, some of which are the most complex in the Rolls-Royce plc portfolio. This is the first contract of its type offered by Rolls-Royce plc on post production parts and follows a pilot scheme, undertaken by Smiths' Burnley facility to demonstrate rapid response, lean manufacturing and simplified process. The scope of the contract covers parts for civil, military, industrial and marine engines for a range of platforms including Hawk, Jaguar, Harrier, Boeing 747/757/767, various helicopter applications and Concorde. Industrial and marine applications include RB 211, including the dry low emissions variant, Avon, Olympus and the new WR 21 and Marine Trent.

The second contract is with Reynolds Rings, a part of Smiths Aerospace, covering the supply of rings for gas turbine engines. Commencing immediately, this will be worth approximately GBP20 million over the next 3 years. Under the agreement, Reynolds Rings will supply its traditional flash welded rings, and the opportunity will also arise to add value to the conventionally supplied forgings, e.g. through the supply of finish machined, engine ready components. With a reducing supplier base, Reynolds Rings is one of only two strategic UK suppliers of ring products to Rolls-Royce plc.

About Smiths

Smiths Aerospace is the leading transatlantic aerospace equipment company, with its 12,000 staff and $2 billion revenues split equally between Europe and North America. Smiths Aerospace, a part of Smiths Group plc, holds key positions in the supply chains of all major military and civil aircraft and engine manufacturers and is a world-leader in electronic systems, actuation systems, precision components, marine systems, aviation security and detection systems.