Abstract: A hand-held pneumatic rotary drive tool having an adjustable exhaust. The tool has an elongate housing containing a pneumatic motor. The housing has an inlet passage for pressurized air at the rearward end of the housing and air delivery passaging for flow of pressurized air to the motor. A rotary connector on the housing at the inlet passage permits connection to an air hose. The housing also has an air exhaust passage for exhausting air from the motor. An air deflector for exhausting air exiting the exhaust passage is rotatable around the connector for deflecting exhaust air laterally outward in a selected direction away from a user holding the tool.