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3 May 2006

SMITHS Aerospace, part of the global engineering business Smiths Group, today announces it has been selected by GE Aircraft Engines for a $90 million Risk and Revenue Sharing contract to supply six major components for nearly 750 engine upgrade kits for the J85 Propulsion Modernization Program on the United States Air Force T-38 Talon trainer aircraft.

Under the agreement, Smiths will have a 29% share of the program. The engine components will be manufactured by Smiths facilities in North Carolina and Connecticut. Deliveries will continue through 2012.

By participating in this Risk and Revenue Sharing program with GE, Smiths is creating an even closer tie to an industry leader and our principal engine customer, explained Dr. Peter Wright, President, Smiths Aerospace Components.

Smiths has proven technical capability and strong customer relations with GE Aircraft Engines for the engine components business. Participation in the upgrade kits requires specialized manufacturing techniques in fabrication, machining, welding and heat treat of precision engine components.

The T-38 trainer has been in service since 1961 with the U.S. Air Force and has approximately 800 aircraft available for operational use. More than 68,000 US Air Force pilots have earned their wings in the T-38, the world's first supersonic trainer.


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