January 23, 2007 - Clearwater, Florida – SMITHS Aerospace, part of the global technology business Smiths Group, has been awarded a 5-year contract, with options up to an additional 5 years, worth a potential value of $52 million. The contract includes performance-based logistics (PBL) support for the Hercules Integrated Operation Support (HIOS) Program for C-130J/K aircraft operated by the Royal Air Force (RAF). The work is taking place at Smiths’ facilities in Michigan, Florida, Ohio, New York and Illinois in the United States and in Cheltenham and Gloucester in the United Kingdom.

Catherine Gridley, President, Smiths Aerospace Systems Customer Services said: “PBLs have transformed the supply chain resulting in a win-win situation for customers and suppliers. PBL support is an integral part of our Systems Customer Services business and it is an area where we plan continued growth."

The contract has been awarded by Lockheed Martin and supports the Royal Air Force fleet of C-130 J/K aircraft through the year 2016. The contract is a significant advancement in support techniques and philosophy. Smiths is responsible for managing the availability of all Smiths hardware manufactured both in the United States and the United Kingdom to support aircraft operated by the RAF. Smiths Aerospace was one of the first aerospace companies to introduce PBL programs in 1997 with a program to support the RAF Hercules SCNS (Self-Contained Navigation System). This was quickly followed by a second RAF support PBL, this time to guarantee the availability of LRU displays for the Tornado GR4. Smiths also has one of the first U.S. Navy PBLs, a 15-year firm fixed price contract signed in 1998, for the Stores Management System (SMS) on the U.S. Navy and U.S. Marine Corps F/A-18, F-14 and AV-8B aircraft. Under the program Smiths Aerospace manages the inventory for some 450 different spares, along with forecasting requirements, managing unit repairs and transportation and is responsible for managing component obsolescence. This was preceded by PBL awards last year for the F/A-18 Stores Management System Upgrade (SMUG), for the U.S. Navy H-60 and for a 10-year contract supporting the USAF’s newest fighter the F-22.

Smiths has various PBLs world-wide supporting primarily military aircraft in the US, UK and Australia, and recently signed a PBL with Singapore Airlines to support the A380.

About the C-130J: The C-130J is the latest addition to the C-130 fleet and will replace aging C-130Es and C-130Hs. The C-130J incorporates state-of-the-art technology to reduce manpower requirements, lower operating and support costs, and provides life-cycle cost savings over earlier C-130 models. Compared to older C-130s, the J model climbs faster and higher, flies farther at a higher cruise speed, and takes off and lands in a shorter distance.

Smiths Group is a global technology company, listed on the London Stock Exchange. Smiths Group is a world leader in the practical application of advanced technologies. Its products and services make the world safer, healthier and more productive. Smiths Group has four divisions: Aerospace, Detection, Medical and Specialty Engineering. It employs 32,000 people and has more than 250 major facilities in 50 countries. On 15 January 2007 Smiths Group announced the sale of Smiths Aerospace to GE, which remains subject to regulatory and shareholder approvals. For more information visit www.smiths.com

Smiths Aerospace is a leading transatlantic aerospace systems and equipment business, with more than 11,500 employees and $2.4 billion revenues globally. The business holds key positions in the supply chains of all major military and civil aircraft and engine manufacturers and is a world-leader in digital, electrical power, mechanical systems, engine components and Systems Customer Services. For further information visit www.geaviationsystems.com

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