Tactical requirements of unmanned air, ground and maritime vehicles, operating in clandestine environments for long periods of time, have dictated the need for the DoD to develop hybrid type propulsion systems. Advanced cycle engines which generate large amounts of electrical power either for weapons or electric propulsion, while retaining the capability to directly propel the vehicle are necessary. Requirements exist for sustained high altitude operations of UAVs which would normally tax the system in terms of power generation capabilities. In the Phase I effort Spytek plans to leverage assets from its recent Phase II and current phase III SBIR efforts with AFRL. These assets include the dual ITB FI304 engine which was tested under a Phase II and has high interest for potential use from UAV builders. Using Spyteks innovative Inter Turbine Burner (ITB) technology, variable nozzle guide vanes and J304 engine core, Spytek proposes the advanced cycle TI304 engine, an ITB equipped turbo-shaft engine for high altitude UAV use, with capability for low altitude VTOL type hybrid operations in response to this solicitation. What is proposed is an advanced cycle, hybrid operation capable, turbo-shaft engine designed for high altitude operations while not compromising power generation capabilities at low altitude.