AGM Statement

4 May 2005

                       AGM STATEMENT ON CURRENT OUTLOOK                        

Rolls-Royce Group plc is today holding its 2005 Annual General Meeting at the
Excel Centre in London. The address to shareholders by Sir John Rose, Chief
Executive, contains the following statement:

"Our investment in a wide portfolio of products has led to a steady expansion
in our market share, with a growing number of Rolls-Royce engines in service.
The resulting expansion in our aftermarket services is making a growing
contribution to our business. We are investing significantly in support
capabilities that will add value for our customers while adding predictability
to our own future earnings.

"Looking to the future, our strong order book, the long-term services revenue
stream and our focus on operational performance all underpin our expectations
of a continued growth in profits in 2005 and further reduction in average net
debt. Current trading is consistent with these expectations."

All resolutions presented to the meeting will be voted on by poll. The results
of the poll will be announced on the Company's website as soon as they are
available (www.Rolls-Royce.com).

NOTE TO EDITORS

 1. Rolls-Royce announced in April its adoption of International Financial
    Reporting Standards (IFRS). This entailed a restatement of its 2004 results
    and an indication that IFRS results for 2005 "are expected to be
    significantly ahead of current market expectations, which are based on UK
    Generally Accepted Accounting Principles".
   
 2. For the avoidance of any doubt, the phrase "expectations of a continued
    growth" cited in the Chief Executive's statement is a confirmation that the
    Company's trading performance is consistent with its original guidance for
    2005, irrespective of the recent accounting changes.
   
For further information please contact:

Duncan Campbell-Smith

Director of Corporate Communications

Tel: [phone]

[e-mail]