GMAS Partner Alenia Signs Agreement with Rolls-Royce to Power C-27J

Rolls-Royce, the world leading provider of power systems andservices, and Alenia Aeronautica, the parent company of Alenia NorthAmerica, Inc., have reached an agreement to supply propulsion systemsfor up to 42 C-27J Spartan tactical military transport aircraft overthe next several years. The propulsion system agreement is valued atmore than $200 million and includes aftermarket services to supportthe propulsion systems. The engines will be manufactured byRolls-Royce in Indianapolis, Indiana.

"The C-27J's propulsion system is integral to the aircraft'ssuperior performance characteristics," said Brigadier General HowardYellen, USA (ret.), General Manager of GMAS. "Rolls-Royce enginesprovide unmatched power and performance that make the C-27J thefastest and most capable aircraft in its class. This latest agreementwill provide our armed services with the flexibility to meet any andall missions, today and tomorrow."

Dennis Jarvi, President Defense North America for Rolls-Royce said"This engine agreement with Alenia Aeronautica marks an exciting stepforward in cementing a long-term relationship between two leadingaerospace companies. With proven Rolls-Royce power, the C-27J providesa significant amount of cargo capability for a variety of militarymissions."

"We are proud to have Rolls-Royce as a partner on the C-27J team,"said Giuseppe Giordo, President and CEO of Alenia North America. "TheC-27J propulsion system is based on the system developed for theC-130J, providing the Spartan with significant interoperability,maintenance, logistics and training commonality with the existing U.S.Air Force fleet of intratheater airlifters."

Rolls-Royce is currently supplying the same propulsion system forC-27Js operated by and under production for Greece, Italy andBulgaria. Under the agreement, Rolls-Royce will supply up to 84 AE2100-D2 engines and Dowty R-391 propellers for the C-27J. The powerplants are manufactured as part of the Rolls-Royce "common core"engine line, which has totaled more than 21 million flight hours.

The JCA program is a key component in the U.S. Army'stransformation of its fixed wing fleet and the Air Force's support forintratheater airlift, which calls for the procurement of a new cargoaircraft. To support the future force, the JCA must be amultifunctional and interoperable aircraft, able to perform logisticalre-supply, MEDEVAC, troop movement, airdrop operations, humanitarianassistance and missions in support of Homeland Security. The JCAprogram is expected to replace the U.S. Army's C-23 Sherpas, C-12 andC-26 aircraft and augment the Air Forces' existing fleet ofintratheater airlifters. The C-27J JCA will play a key role inproviding responsive aerial sustainment and critical resupply supportfor the maneuver force to maintain operational momentum.

The C-27J team provides an uncompromising commitment to deliver aproven, interoperable, and survivable airlifter to the United StatesArmy and Air Force. The C-27J team includes Alenia North America,Boeing, Dowty, Honeywell, L-3 Communications, Lockheed Martin,Rolls-Royce and two dozen other suppliers from around the UnitedStates.

For additional information, please visit www.c-27j.com.

About Boeing Integrated Defense Systems

A unit of The Boeing Company, Boeing Integrated Defense Systems isone of the world's largest space and defense businesses. Headquarteredin St. Louis, Boeing Integrated Defense Systems is a $30.8 billionbusiness. It provides network-centric system solutions to its globalmilitary, government and commercial customers. It is a leadingprovider of intelligence, surveillance and reconnaissance systems; theworld's largest military aircraft manufacturer; the world's largestsatellite manufacturer and a leading provider of space-basedcommunications; the primary systems integrator for U.S. missiledefense; NASA's largest contractor; and a global leader in sustainmentsolutions and launch services.

About L-3 Communications

L-3/IS is recognized internationally as a system integrationorganization specializing in the modernization and maintenance ofaircraft of all sizes, and the study, design, development, andintegration of special mission systems for military and commercialapplications. The company has modified more than 15,000 differentaircraft of more than 125 types. Headquartered in Greenville, Texas,L3 IS operates from multiple sites in Texas, Mississippi, Kentucky,Oklahoma, Virginia, Maryland, Alabama and Australia.

Headquartered in New York City, L-3 Communications is a leadingprovider of Intelligence, Surveillance and Reconnaissance (ISR)systems, secure communications systems, aircraft modernization,training and government services. The company is a leading merchantsupplier of a broad array of high technology products, includingguidance and navigation, sensors, scanners, fuzes, data links,propulsion systems, simulators, avionics, electro optics, satellitecommunications, electrical power equipment, encryption, signalintelligence, antennas and microwave components. L-3 also supports avariety of Homeland Security initiatives with products and services.Its customers include the Department of Defense, Department ofHomeland Security, selected U.S. Government intelligence agencies andaerospace prime contractors.

To learn more about L-3 Communications, please visit the company'sWeb site at www.L-3Com.com.

About Alenia North America

Alenia North America's mission is to further expand the industrialand commercial presence of the Alenia Group in North America and is awholly owned subsidiary of Alenia Aeronautica. Alenia North AmericaInc. is headquartered in Washington, D.C. with offices in Seattle,Washington; Long Beach, California; and Fort Worth, Texas. AleniaNorth America--Canada, a subsidiary wholly owned by Alenia NorthAmerica has offices in Ottawa, Canada. Alenia North America is also ashareholder in Global Aeronautica, a joint venture with VoughtAircraft Company, located in North Charleston, South Carolina, whichperforms significant integration and sub assembly work for the Boeing787 program.

Alenia Aeronautica, headquartered in Rome, Italy is a company ofthe Finmeccanica Group. Alenia Aeronautica has revenues in excess of1.2 billion Euros and a total work force of more 10,500 employees. Itsmain activities comprise design and production of commercial andmilitary aircraft, design and production of aerostructures formilitary and civil aircraft and through Aeronavali, a wholly ownedsubsidiary, the overall maintenance and modification of military andcivil aircraft. Alenia Aeronautica is a partner of and cooperates withthe major global aerospace groups, including Boeing, Lockheed Martin,Airbus, EADS, Dassault, BAE Systems and Vought.