The ACDMM (Advanced Course in Design, Manufacture and Management) was finally recognised as a university course, twenty years after its inception, and the Whittle Laboratory was designated a University Technology Centre (UTC) by Rolls Royce, thereby guaranteeing continuation of support. Rolls Royce funded a new Professorship of Aerothermal Technology, a Chair to which Professor Nick Cumpsty was elected.

The Soil Mechanics research group moved out to the Centrifuge Centre at West Cambridge, leaving space for a 'Clean Room' to be constructed for research into nanofabrication and microcircuits.

A new Aerodynamics lab was built on top of the Baker building to accommodate a low turbulence wind tunnel.

A company, Cedar Audio Ltd, was formed with the financial backing of the British Library and the Cable and Wireless Co. to exploit work from the Signal Processing group, under the direction of Professor Peter Rayner, on the restoration of degraded gramophone recordings.

An endowment from Mr Paul Judge (now Sir Paul), a former student of engineering, led to the establishment of the Judge Institute of Management Studies in the spectacularly renovated old Addenbrookes Hospital across the road from the main site.

Links with industry were further encouraged by the setting up of the Cambridge Programme for Industry to provide advanced short courses for professional people.