Pratt & Whitney Canada and Helicopters of Russia Sign MOU to Produce PW127TS for Russian MI-38 Helicopter

Pratt & Whitney Canada and Helicopters of Russia have signed today in Moscow a memorandum of understanding (MOU) to produce the PW127TS engine for Russia's new generation, twin-engine medium helicopter MI-38. Pratt & Whitney Canada (P&WC) is a United Technologies (NYSE: UTX) company.

Under the agreement with JSC "Helicopters of Russia", JSC "Ufa Engine Industrial Association" (UMPO) and the Central Institute of Aviation Motors (CIAM), P&WC will be responsible for developing a turboshaft version of its PW127 engine and having it certified to Transport Canada and Russian standards.

Helicopters of Russia, together with UMPO, will invest in the development and localization of the PW127TS, which will be assembled under license by UMPO for the Russian MI-38. The MI-38 will be manufactured by Kazan Helicopters.

"This breakthrough project in Russia is exciting for us, in that we combine the expertise of world-class aerospace companies to build this new helicopter engine," said Joseph Torchetti, vice president, International Business Development, P&WC.

Added Andrey Shibitov, General Director of Helicopters of Russia: "We are very pleased to be entering into this innovative arrangement with Pratt & Whitney Canada, which brings together the outstanding track record and dependability of its engines with the growing capabilities of Russia's aerospace sector."

The PW127TS engines will be sold to Helicopters of Russia in kits. In addition, unique modules to convert and adapt the PW127 as a turboshaft, will be built in Russia under the technical supervision of P&WC's Russian affiliate, Pratt & Whitney Rus (P&W Rus) of St. Petersburg. P&W Rus will also provide technical and customer support for the engines.

The MI-38 helicopter is being developed by the Moscow Helicopter Plant and belongs to increased-lift-capacity class of helicopters. Fitting up to 30 passengers, with a payload of five tons, the MI-38 is a utility helicopter, and is also intended for petroleum exploration, heavy lifting and VIP transportation. It can carry large-size external loads of up to seven tons. The MI-38 helicopter also complies with Russian AP-29 standards, the European JAR-29 and U.S. FAR-29 requirements, and ensures high operational safety. Long-life, on-condition maintenance, and high level of comfort for the crew and passengers make the MI-38 helicopter an exceptionally promising product for the world market.

Russian certification of the PW127TS engine is planned for 2011, while the MI-38 entry into service is scheduled for 2012.

Pratt & Whitney Canada, based in Longueuil, Quebec, is a world leader in the design, manufacture and service of aircraft engines powering business, general aviation and regional aircraft and helicopters. The company also manufactures auxiliary power units and industrial gas turbines. United Technologies, based in Hartford, Conn., USA, is a diversified company providing high technology products and services to the global aerospace and building industries.

Contacts: Pratt & Whitney Canada Jean-Daniel Hamelin General and Trade Press 450-647-7391 jean-daniel.hamelin@pwc.ca www.pwc.ca