Interim Management Statement

12 November 2010

                         INTERIM MANAGEMENT STATEMENT                          

Rolls-Royce Group plc, the global power systems company, is today issuing its
Interim Management Statement for the period 1 July to 11 November 2010.

Trading across the Group's businesses has progressed in line with the guidance
for modest growth provided in July 2010, at which time the Board expected
underlying profits to grow by between four and five per cent compared to 2009.
As a result of the recent Trent 900 incident on 4 November, partially mitigated
by better performance in the Marine and Defence businesses, the Board now
expects underlying profit growth for the full year to be slightly lower than
previously guided. The Board also expects a small cash inflow in 2010 with the
average net cash balance remaining similar to that in the first half of the
year which was £915m, both substantially the same as guided in July.

Sir John Rose, Chief Executive, said:

"Safety is the highest priority of Rolls-Royce. This has been demonstrated by
the rapid and prudent action we have taken following the Trent 900 incident. We
have instigated a programme of measures in collaboration with Airbus, our 
Trent 900 customers and the regulators. This will enable our customers 
progressively to bring the whole fleet back into service. We regret the 
disruption we have caused.

"This event and the consequent actions will have an impact on the Group's
financial performance this year. However the scale of our order book, the
breadth and mix of our portfolio, the global nature of our business and our
strong balance sheet makes Rolls-Royce a resilient business, and we expect
continued underlying profit growth in 2010".

The Group has made further good progress in the period with the 
non-civil aerospace businesses now expected to perform slightly better than 
guided in July.

There are signs of improving demand in our Marine business as we build our
portfolio across the offshore, specialist vessel and naval markets.

The Energy business is expected to make good progress in 2010. We continue to
explore options to grow our Energy and nuclear activities.

The global reach of our Defence business affords us access to the markets where
demand for our products and services is increasing. The broad range of
applications, customers and sectors that we support and the entry into service
of new programmes will further underpin long-term growth. This will more than
compensate for the modest, and anticipated, reduction in revenues from the 
UK Government which are a consequence of the recently announced 
Strategic Defence and Security Review.

The Civil aerospace business has proved resilient through a challenging
economic period. Our market leading positions will progressively be extended as
new applications, such as the B787, Gulfstream G650 and A350XWB enter service
over the next few years. In 2010 the civil business has continued to make
progress in line with our expectations. The bulk of the costs of the Trent 900
incident and the necessary mitigation will be expensed this year. Civil
business profitability will therefore be lower than guided in July.

The Group will report its preliminary results for the 12 month period ending 
31 December 2010 on 10 February 2011.

For further information please contact:

Mark Alflatt
Director of Financial Communications
Tel: [phone]
[e-mail]

Josh Rosenstock
Head of Corporate Communications
Tel: [phone]
[e-mail]