New subsidiary

25 November 2005

NEW SUBSIDIARY TO ASSIST GROWTH OF ENGINEERING CAPACITY IN INDIA

Rolls-Royce Group plc, the world leading provider of power systems and
services, today announced that it has established a wholly-owned subsidiary in
India to manage the growing volume of engineering work that it is 
sub-contracting in the country.

Based in Bangalore, Rolls-Royce Operations India Pvt Ltd will help the Group
meet a need for greater engineering capacity over a range of its new
programmes. It will enable Rolls-Royce to take advantage of the capability that 
exists in India to develop, reliably and to consistently high-quality standards, affordable
aero-engineering solutions - including engineering analysis and design
capability.

The new subsidiary will direct engineering work packages to Quality Engineering
and Software Technologies (QuEST), which is a leading provider of global
product development solutions based in Bangalore. QuEST is a highly successful,
privately owned pioneer in engineering
sub-contracting in India.

Following a successful 18-month pilot programme with QuEST, Rolls-Royce has now
gained first-hand experience of the operational, commercial, financial and
cultural requirements for successfully sub-contracting high quality engineering
work to India.

In March 2005, a Rolls-Royce Centre was established in QuEST's Bangalore
facilities and the volume of work has built up to require 100 locally-employed
engineers. There are plans to double this number by early 2007. The Rolls-Royce Centre
became fully operational in October 2005.

Sir John Rose, Chief Executive of Rolls-Royce, speaking in Bangalore today,
said: "This expansion of Rolls-Royce in India builds on our long association with
Bangalore. Next year we will celebrate 50 years of partnership with HAL. This
is an excellent opportunity for bright engineers in India, as the new company
will cover the whole range of engineering tasks. The new company reflects the
quality of engineering in India, and illustrates how Rolls-Royce is investing in 
engineering capability around the world."

Mike Bradley, General Manager Rolls-Royce Operations (India) said: "Bangalore
is the `aero city' of India and has a population of high calibre young
engineers that QuEST needs. It is this approach and the synergy that we have
found here in Bangalore that encouraged us to form a relationship with QuEST
and a centre where engineers will operate under the Rolls-Royce global
standards of excellence."

Note to Editors

 1. Rolls-Royce has more than 1000 aero engines in service in India, mainly as
    a result of long-term defence programmes and all four of the company's
    global market sectors - civil aerospace, defence aerospace, marine and
    energy - are represented in the country.
   
 2. Rolls-Royce has a strong licence partnership with Hindustan Aeronautics
    Limited (HAL) in Bangalore, the largest defence manufacturing company in
    India. The partnership started with the licenced production by HAL of the
    Orpheus in 1956 and this engine is still in service on the Kiran trainer.
   
 3. HAL has been manufacturing the Adour Mk811 for the Jaguar since 1978. HAL
    will also licence manufacture the Adour 871 for the new Hawk AJT. In a new
    development, HAL became a supplier to Rolls-Royce in 2003 exporting ring
    forgings to the UK for use in civil aero engines.
   
 4. The new company is located at No 55, QuEST Towers, Whitefield Main Road,
    Mahadevapura, Bangalore - 560 048, India, where it is co-located with
    Quality Engineering & Software Technologies (Pvt) Ltd (QuEST)
   
 5. QuEST is a privately owned company formed in 1997 which employs some 800
    engineers across US, UK, Italy, Japan, China and India. Expertise ranges
    from concept design to product realisation solutions in the aerospace,
    automotive, energy and industrial sectors.
   
For further information please contact:

Martin Brodie
Head of Communications - Asia and Middle East
Tel: [phone]

Email: [e-mail]

[e-mail]

Web site: www.rolls-royce.com