Re Contract

11 February 2003

      MILITARY AFTERMARKET INITIATIVE WINS $150M SUCCESS FOR ROLLS-ROYCE       

Rolls-Royce has announced a significant success in its ongoing aftermarket
initiative with the award of business worth more than $150 million.

The two contracts placed by undisclosed military customers, covering engine
spares and services, are part of a Rolls-Royce initiative known as Mission
Ready Management Solutions (MRMS). This process has been devised to increase
the level of customer service and maximise the potential of the aftermarket
opportunity by listening to customer needs and tailoring service packages to
suit.

John Boughton Rolls-Royce Defence Aerospace Director of Marketing and Sales
said: 'Rolls-Royce is actively engaging with customers to determine how
in-service engines can be best managed reliably at the lowest cost, reducing
customer expenditure on maintenance, increasing availability and providing more
effective, long-term budget visibility.

'With over 20,000 Rolls-Royce military engines flown by more than 160 operators
around the world, this is an important area of growth for the company. This is
by no means a 'one size fits all' strategy but a tailored process that meets
the future demands of our market.'

A similar contract with the UK's Royal Air Force for their Spey engines for the
Nimrod MR2 aircraft has resulted in increased engine reliability and reduced
turnaround time.

Internationally, too, Rolls-Royce has a `total service' pedigree, including
fleet-hour agreements with the US Department of Defense on programmes like the
V-22 Osprey, and contracts with Qantas and Bombardier on the Adour engine for
Australian and Canadian Hawk trainers respectively.

Based on installed engines in operational aircraft, Rolls-Royce is the second
largest military aero engine manufacturer with approximately 26 per cent of the
market. The company is well positioned for the future with offerings in all
major defence aerospace sectors. In the largest potential market, the combat
market, Rolls-Royce has won an unparalleled position on Eurofighter and Joint
Strike Fighter, two of the largest combat programmes in the world.

For more information, please contact:

Nick Britton

Communications Manager - Defence

Rolls-Royce plc

Tel: [phone]

Email: [e-mail]