Volvo Aero is partner in General Electric's new LMS100TM gas turbine

    Volvo Aero is partner in General Electrics new LMS100TM gas turbine

Volvo Aero is a partner in the new LMS100 TM gas turbine that General Electric
presented at the Power-Gen 2003 trade show in Las Vegas. Volvo Aero will deliver
a number of key components to the new environmentally friendly gas turbine,
which is expected to gain a highly important role in the power generation
industry.
This is a highly significant agreement for Volvo Aero and a broadening of our
product range, says Fred Bodin, President of Volvo Aero.  We estimate the
total value of the contracts at SEK 7 billion (about 800 MUSD) over a 20-year
period.

Volvo Aero has been a partner with General Electric since the 1980s in the
CF6-80 engine, which powers Boeing 747 aircraft, among others. Volvo Aero and
General Electric have also cooperated in the aeroderivative segment, that is,
somewhat modified aircraft engines that are used instead as stationary gas
turbines to generate electricity and heat. For example, this cooperation has
included the LM6000 gas turbine.

Volvo Aero is involved in the new LMS100 TM engine as a so-called Risk and
Revenue Sharing Partner. The partners share the costs, revenues and
responsibility for the gas turbines during their entire lifetime. 

Volvo Aero is responsible for the design, development and production of the
power turbine case in the LMS100 TM. The company will also manufacture the
intermediate turbine frame and the compressor rear frame on a supplier basis. In
addition, Volvo Aero will provide engineering work packages for other components
in the engine. The first compressor rear frame has already been delivered to
General Electric.

Volvo Aero has specialized in a number of large complex structures in aircraft
engines and gas turbine aeroderivatives for many years.  
 
Volvo Aeros proven capabilities and expertise in these types of large complex
structures makes them a great fit for the program, explains Mike Reale, LMS100
TM Project Manager at GE Aircraft Engines.

General Electrics LMS100 TM  is the first gas turbine in the power industry to
employ off-engine intercooling technology with the use of an external heat
exchanger.

The LMS100 TM provides outputs above 100 MW, with simple-cycle efficiencies
exceeding 46%. This represents a 10% increase compared with GEs most efficient
simple-cycle gas turbine on the market today, the LM6000. 

The LMS100 TM is based on a combination of frame and aeroderivative gas turbine
technology. It delivers significantly more power than todays aeroderivatives
while providing all of the advantages of a conventional aeroderivative such as a
very short start-up time of within 10 minutes.

As a result of the high efficiency and low mass emission rate, the LMS100TM  is
environmentally friendly. It provides major potential, for example, in CHP
(combined Heat and Power) and supplemental power for coal fired plants.

The gas turbine core will be tested in May 2004 and the first complete engine
system will be available for shipment in the second half of 2005.

December 10, 2003

For further information, please contact:
Robert Lundberg, Marketing Director, Engines, Volvo Aero, [phone]        
     
Joakim Andersson, Project Manager for LMS100TM at Volvo Aero, [phone]    

Images of LMS100 can be found on volvoaero.com:
http://www2.volvo.com/volvoaero/global/en-gb/newsmedia/image+bank/engine+compone
nts/

Volvo Aero develops and manufactures components for aircraft and rocket engines
with a high technology content in cooperation with the worlds leading
producers. Volvo Aero offers an extensive range of services, including sales of
spare parts for aircraft engines and aircraft, sales and leasing of aircraft
engines and aircraft, as well as overhaul and repair of aircraft engines. Volvo
Aero is part of the Volvo Group, one of the worlds leading manufacturers of
trucks, buses and construction equipment, drive systems for marine and
industrial applications, aerospace components and services. The Group also
provides complete solutions for financing and service.