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Goodrich and Rolls-Royce propose engine controls joint venture

Aug. 15, 2008, Charlotte, NC – Goodrich Corporation and
Rolls-Royce plc announced yesterday that they have signed a Letter of
Intent proposing the formation of a joint venture company, which would
develop and supply engine controls for Rolls-Royce aero engines.

If the proposed joint venture goes ahead, it would enable the two
companies to integrate their engine controls activity more closely.  It
would combine Goodrich's existing UK-based engine controls design and
manufacturing business and Rolls-Royce's expertise in the integration
of controls into the engine.  Goodrich would retain the aftermarket
products and services business associated with the joint venture's
products.

Under the proposals, each of the contributing companies would own 50
per cent of the joint venture company.  Both companies will begin
discussions with employee representatives on proposed timescales for
consultation.

Colin Smith, Director — Engineering & Technology, Rolls-Royce plc
said, "This proposed joint venture would allow us to align our
activities more closely, and reflects the importance we attach to the
engine control system in optimizing engine performance."

Curtis Reusser, Segment President, Electronics Systems, Goodrich said,
"This arrangement would bring benefits to both our companies.  Goodrich
already works closely with Rolls-Royce and we believe closer
integration would provide an even more efficient delivery of these
important engine control systems."