Re Contract

6 June 2003

           JAPAN DEFENSE AGENCY SELECTS ROLLS-ROYCE TURBOMECA RTM322           

Rolls-Royce Turbomeca RTM322 engines have been selected by the Japan Defense
Agency (JDA) to power EH Industries' EH101 helicopters for the Japan Maritime
Self Defense Force (JMSDF). Subject to satisfactory contract negotiations the
JDA will order up to 14 helicopters. Each of the EH101 aircraft will be powered
by three RTM322 Mk250 engines, similar to those fitted to the United Kingdom's
Royal Air Force Merlin HC Mk3 fleet.

Japan is the fourth country and fifth customer to choose the RTM322 for the
EH101, highlighting the fact that the RTM322 is the leading powerplant for
modern medium-sized helicopters, particularly those operating in a maritime
environment.

Two variants of the RTM322-powered EH101 are in operation with the United
Kingdom's Royal Navy and Royal Air Force, and the engine also powers the
British Army's Apache AH Mk1 helicopter. Additionally, Portugal and Denmark
have chosen the RTM322 for their EH101 helicopters.

Germany, France, the Netherlands, Portugal, Finland, Sweden and Norway have
also selected the RTM322 to power their NH Industries' NH90 fleets.

The RTM322 is produced by Rolls-Royce Turbomeca, a joint venture between
Rolls-Royce and Turbomeca. Approximately 1,100 RTM322 engines have been ordered
for EH101, Apache AH Mk1 and NH90 helicopters. Since 2001, the RTM322 has won
every competition that it has entered: it now powers over 75 per cent of all
EH101 helicopters ordered and has been selected by over 85 per cent of NH90
customers. The RTM322 is also being offered for a number of additional
applications, including the AgustaWestland/Lockheed Martin US101, the Sikorsky
S-92 and the Sikorsky UH-60 Black Hawk family.

The RTM322 is the only engine qualified for use on the EH101 with a Full
Authority Digital Electronic Control (FADEC) system. The unmatched ease of
operation and fault diagnosis features of the FADEC, coupled with the engine's
operationally proven reliability and maintainability in Royal Navy and Royal
Air Force service, have enhanced its reputation as the most effective engine
for the EH101.

Rolls-Royce Turbomeca is jointly owned by Rolls-Royce plc and Turbomeca. Since
its formation in 1966, it has developed and produced more than 2,600 Adour
turbofan engines for the SEPECAT Jaguar, BAE SYSTEMS Hawk and Mitsubishi T-2/
F-1 fleets. In 1983, RRTM began development of the RTM322, which entered
service with the Royal Navy in Merlin HM Mk1 in 1998 and the GKN Westland
WAH-64 Apache in March 2000. To date orders for more than 1,100 engines have
been received.

For further information please contact:

Nick Britton Rolls-Royce

Phone: [phone] email:[e-mail]