$500 MILLION BUSINESS FOR C-27J

19 June 2007

          C-27J BUSINESS WORTH MORE THAN $500 MILLION TO ROLLS-ROYCE           

Rolls-Royce has been selected as the propulsion system provider for C-27J
medium transports for the Joint Cargo Aircraft (JCA) programme for the US Army
and US Air Force. The business, including engines and aftermarket services,
will be worth more than $500 million over the life of the JCA programme.

The twin-engine C-27J Spartan aircraft will be powered by Rolls-Royce AE 2100D2
turboprop engines.

The initial contract award includes up to 78 C-27J aircraft and up to 180
engines. The total contract value for the aircraft is more than $2 billion. The
Army and Air Force have announced previously they may purchase up to 145
aircraft in the JCA programme.

Dennis Jarvi, President Defense North America for Rolls-Royce, said:
"Rolls-Royce has a long history as the leading propulsion provider for military
transport aircraft and this selection demonstrates our continued success in
that segment of the aerospace industry. These powerplants are among the most
sophisticated and high-tech engines in military aviation and will provide the
power, flexibility and range our customers require to complete their missions."

The aircraft will be produced by a team including L-3 Integrated Systems Group,
Alenia North America (a Finmeccanica Company), Boeing Integrated Defense
Systems, Global Military Aircraft Systems (GMAS) and Rolls-Royce.

The C-27J is a mid-range, multifunctional and interoperable aircraft, able to
perform logistical re-supply, MEDEVAC, troop movement, airdrop operations,
humanitarian assistance and homeland security missions in support of Homeland
Security for the US Army and US Air Force.

The C-27J will replace the US Army's C-23 Sherpas, C-12 and C-26 aircraft and
augment the US Air Forces' existing fleet of intratheatre airlifters. The
aircraft will play a key role in providing responsive aerial sustainment and
critical re-supply support.

NOTE TO EDITORS

 1. Six customers - Bulgaria, Greece Italy, Lithuania, Romania and the United
    States - have selected the AE 2100-powered C-27J.
   
 2. Rolls-Royce is market leader in the military transport aircraft sector with
    around half of this market worldwide.
   
 3. The AE 2100D2 engine is part of the "common core" AE engine line produced
    by Rolls-Royce, and provides up to 6,000 shaft horsepower. The reliable and
    proven AE engine line has accumulated more than 25 million flight hours in
    military and civil applications. Rolls-Royce produces the AE 2100 turboprop
    engine line at its manufacturing facility in Indianapolis, US.
   
 4. Rolls-Royce, the world-leading provider of power systems and services for
    use on land, at sea and in the air, operates in four global markets - civil
    aerospace, defence aerospace, marine and energy.
   
 5. It continues to invest in core technologies, products, people and
    capabilities with the objective of broadening and strengthening the product
    portfolio, improving efficiency and enhancing the environmental performance
    of its products. These investments create high barriers to entry.
   
 6. The success of its products is demonstrated by rapid and substantial gains
    in market share. The company now has a total of 54,000 gas turbines in
    service worldwide and they generate a demand for high-value services
    throughout their operational lives.
   
 7. Rolls-Royce has a broad customer base comprising 600 airlines, 4,000
    corporate and utility aircraft and helicopter operators, 160 armed forces,
    more than 2,000 marine customers including 70 navies, and energy customers
    in 120 countries. Rolls-Royce is a technology leader, employing 38,000
    people in offices, manufacturing and service facilities in 50 countries.
   
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George McLaren, Senior Communications Manager             
Rolls-Royce                                 
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