This report addresses progress on Advanced Turbine Systems (ATS) design and testing. The most important program milestone to date occurred during this quarter. Allison successfully tested the prototype ATS high temperature turbine section to the ATS goal of 2600F Turbine Rotor Inlet Temperature. This test represented the first full engine test of the Castcool turbine airfoil cooling system. This contract provided funding for the build and test of the turbine system while other Allison IR and D funding and Navy contract funds provided the design and development successes necessary to advance this technology to the level required for a successful test. A demonstration of this kind shows what a cooperative government/industry initiative can achieve. This test itself was cut short due to a high interstage cavity temperature resulting in remaining budget at completion of test. Allison has decided that the best use of the remaining budget is to develop the manufacturing process for Castcool turbine rotor blades now that the process for the stator vanes has been proven. Development of this process will provide the basis for future engine development of this critical ATS high temperature turbine technology. DOE COR Diane Hooie agreed with this direction and Allison will proceed down this path posthaste. Allison is in the process of requesting a contract extension. Although most tasks will be completed by end of contract there are two areas where additional time is needed: (1) dynamic oxidation testing -- obtaining the goal of 5,000hrs will require an additional 2 months; (2) combustor rig testing of the best lean pre-mix module will require an additional one month. Addition time will be required to accomplish the reporting task for these efforts.