Re Agreement

3 May, 2006

 ALENIA AERONAUTICA AND ROLLS-ROYCE SIGN $200M AGREEMENT FOR ENGINES TO POWER  
                                C-27J AIRCRAFT                                 

Alenia Aeronautica, a Finmeccanica company, and Rolls-Royce, the world-leading
provider of power systems and services, have signed an agreement worth more
than $200 million under which Rolls-Royce will supply 42 propulsion systems for
C-27J tactical military transport aircraft.

The C-27J is a candidate for the Joint Cargo Aircraft program for the U.S. Army
and Air Force.

The agreement includes up to 84 AE 2100-D2 engines, which are manufactured by
Rolls-Royce in Indianapolis, IN. Rolls-Royce is the world's leading producer of
engines for military transport aircraft.

The agreement also includes six-bladed Dowty R-391 propellers and technical
support.

Dennis Jarvi, President Defense North America for Rolls-Royce, said, "This
agreement with Alenia Aeronautica is a very significant development in
cooperation between two leading aerospace companies. The agreement demonstrates
the continued commitment of Rolls-Royce to meet the needs of the military
customer, in the U.S. and among other allies around the world."

Giovanni Bertolone, CEO of Alenia Aeronautica, said: "The Rolls-Royce AE
2100-D2 engine is one of the key elements assuring the excellent performance
and reliability of the C-27J. The growth potential of the Rolls-Royce engines
also provide the aircraft with the capacity to carry out all the tactical
transport roles foreseen in the years to come."

C-27J Spartan aircraft are in use by the Hellenic Air Force and being delivered
to the Italian and Bulgarian air forces.

NOTE TO EDITORS

 1. Rolls-Royce AE 2100 engines also power C-130J aircraft. The AE "common
    core" engine line also includes the AE 1107C-Liberty, which powers the V-22
    Osprey, as well as the AE 3007, which powers Global Hawk and corporate/
    regional aircraft such as Embraer 135/145.
   
 2. The AE engine line has logged more than 21 million hours of operation and
    the engines are manufactured by Rolls-Royce in Indianapolis, IN.
   
 3. 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. It is investing in
    technology and capability that can be exploited in each of these sectors to
    create a competitive range of products.
   
 4. The success of these products is demonstrated by the company's rapid and
    substantial gains in market share over recent years. The company now has a
    total of 54,000 gas turbines in service worldwide. The investments in
    product, capability and infrastructure to gain this market position create
    high barriers to entry.
   
 5. Rolls-Royce has a broad customer base comprising nearly 600 airlines, 4,000
    corporate and utility aircraft and helicopter operators, 160 armed forces
    and more than 2,000 marine customers, including 70 navies. The company has
    energy customers in nearly 120 countries. Rolls-Royce employs around 36,000
    people, of which 22,000 are in the UK. Forty per cent of its employees are
    based outside the UK - including nearly 5,000 in the rest of Europe and
    nearly 8,000 in North America.
   
For further information, please contact:

Nick Britton
Communications Manager - Defence Aerospace
Rolls-Royce plc

Tel: [phone]
Email: [e-mail]
Web www.rolls-royce.com