Sikorsky Aircraft's Military and Commercial Programs Thriving as Company Charts Path for Future Growth

Jul 17, 2006, 01:00 ET from Sikorsky Aircraft Corporation

 AIR SHOW -- With a robust order book and busy production lines, Sikorsky
 Aircraft continues to invest in numerous development programs to pave the
 way for future growth, Sikorsky President Jeffrey Pino said today at the
 Farnborough International Air Show. Sikorsky, based in Stratford, Conn.,
 USA, is a business unit of United Technologies Corp. (NYSE:   UTX).
     (Logo: )
     Pino, a retired Master Aviator with 26 years U.S. Army active, Reserve
 and National Guard experience, piloted an S-76(R) helicopter to the
 Farnborough Heliport at the show opening. Pino was named Sikorsky President
 March 8.
     "Anyone who's made a career in helicopters would be thrilled and
 honored to take over leadership of a company with the heritage and stature
 of Sikorsky Aircraft, especially at this time in history. We are poised at
 the front end of what promises to be an exceptional period of growth and
 innovation at Sikorsky Aircraft," Pino said.
     Sikorsky's revenue reached a record $2.8 billion in 2005 and its
 backlog has grown to about $8 billion from $6.9 billion in 2004.
     Current U.S. government production programs include the MH-60S and
 MH-60R for the U.S. Navy, and the UH-60 BLACK HAWK for the U.S. Army.
     The program of record is 271 and 254 for, respectively, the Navy's
 MH-60S and MH-60R helicopters. The U.S. Army's newest BLACK HAWK, the
 UH-60M, is in low rate initial production. A full-rate production decision
 to authorize more than 1,200 UH-60M aircraft is scheduled for 2007. "Our
 H-60 product lines are in a strong growth period as both the Army and Navy
 continue to replenish their fleets," Pino said.
     In April, Sikorsky was awarded a $3 billion System Development and
 Demonstration contract for the U.S. Marine Corps new CH-53K heavy lift
 helicopter. The SDD contract could lead to the production of 156 CH-53K
 aircraft to replace roughly an equal number of CH-53E SUPER STALLIONs(TM)
 in the Marine Corps' current inventory.
     Development money and production quantities for all government programs
 are determined year-by-year over the life of the program based on funding
 allocations set by Congress and Pentagon acquisition priorities.
     The S-92(TM) helicopter and S-76 product lines continue to lead the
 resurgence in Sikorsky's commercial product line. Sikorsky delivered fewer
 than 10 commercial aircraft in 2002 and 49 in 2005. "One reason we are so
 optimistic about our future is that we see strong growth across all of our
 product lines," Pino said.
     In the past year the S-76 fleet passed 4 million flight hours and
 Sikorsky delivered the 600th aircraft in the series.
     In less than two years since the start of production deliveries, the
 S-92 fleet has already accumulated 20,000 flight hours. Offshore oil S-92
 operators are flying in excess of 160 hours per month, a testament to the
 aircraft's robustness and ease of maintenance.
     Sikorsky's aftermarket business is also robust and currently makes up
 about half the company's revenue, Pino said. Recent aftermarket contract
 awards include:
     * A public/private depot partnership to provide total support for key
       dynamic components for 189 U.S. Navy and Marine Corps MH- and CH-53E
       heavy lift helicopters
     * Inspection and maintenance services required to restore up to 208 U.S.
       BLACK HAWKs per year to pre-deployment condition
     * Support services and maintenance for 382 U.S. Navy fixed wing training
     * An agreement to become a Service Center for Eurocopter helicopter models
       including the BO105, EC120, AS350 and the AS355 in the U.S.
     * Sikorsky will operate as a subcontractor to EADS North America to supply
       materials, technicians, field service teams, and related logistics
       services for UH-145 aircraft recently selected to fulfill the U.S.
       Army's Light Utility Helicopter requirement.
     Even with surging production, Sikorsky continues to invest in product
 development in order to sustain long term growth. In addition to the CH-53K
 for the Marine Corps, other current development programs include:
     * The S-76D(TM) helicopter, equipped with a new Sikorsky-Thales cockpit
       and new Pratt & Whitney Canada engines
     * The HH-92(TM) helicopter, the first S-92 military variant, to be
       delivered to Canadian forces beginning in 2008, with blade fold, tail
       fold and fly-by-wire
     * The first initial block upgrade for the U.S. Army's UH-60M BLACK HAWK
       will integrate the Common Avionics Architecture System (CAAS) cockpit
       and fly-by-wire system
     * The armed and airborne mine countermeasures (AMCM) versions of the U.S.
       Navy's MH-60S helicopter
     * The X2 Technology(TM) project to develop new high performance and high
       speed co-axial helicopters is on schedule to fly a demonstrator aircraft
       in late 2006
     Over the past year, Sikorsky made two significant investments to insure
 it has sufficient capacity and flexibility to meet growing demand.
     In December, Sikorsky completed its acquisition of Keystone Helicopter
 in Pennsylvania. Keystone provides full-service engineering, completion and
 technical support for commercial helicopters.
     On June 5, Sikorsky announced plans to build a new 100,000-square-foot
 Rapid Prototyping and Military Derivatives Completion Center (RPMDCC) at
 its Schweizer Aircraft subsidiary facility in Elmira, New York, USA.
 Branded as Sikorsky HAWK WORKS@Schweizer Aircraft(sm), the facility will
 serve as the primary completion center for all BLACK HAWK and Naval Hawk
 derivative aircraft, mostly for non-U.S. military customers.
     Sikorsky Aircraft Corporation, based in Stratford, Conn., is a world
 leader in helicopter design, manufacturing and service. United Technologies
 Corp., based in Hartford, Conn., USA, provides a broad range of high-
 technology products and support services to the aerospace and building
 systems industries.
     This press release contains forward-looking statements concerning
 future business opportunities. Actual results may differ materially from
 those projected as a result of certain risks and uncertainties, including
 but not limited to changes in government procurement priorities and
 practices or in the number of aircraft to be built; challenges in the
 design, development, production and support of advanced technologies; as
 well as other risks and uncertainties, including but not limited to those
 detailed from time to time in United Technologies Corporation's Securities
 and Exchange Commission filings.

SOURCE Sikorsky Aircraft Corporation