Re Contract

December 19 2005

                  NEW-STYLE SUPPORT CONTRACT FOR RAF FIGHTERS                  

Rolls-Royce, the world leading provider of power systems and services, has
signed an innovative service contract worth £57 million with the UK Ministry of
Defence (MoD) to support the Royal Air Force's new fleet of Eurofighter Typhoon
aircraft, powered by EJ200 engines assembled by Rolls-Royce in Bristol.

Under the terms of the contract, Rolls-Royce will be paid in line with its
success at ensuring that the RAF has enough available EJ200 engines at all
times to support an expanding flying programme for the Typhoon. The contract is
another key milestone for Rolls-Royce in the rapid expansion of its Mission
Ready Management Solutions (MRMS)®.

Under MRMS, customers are able to select from a menu of support options and
benefit from a solution tailored to suit their operational needs. MRMS
contracts now generate 55 per cent of the company's defence revenues.

The new Typhoon contract will run until June 2008. It replaces an existing
contract which started in 2003 and enhances the previous level of support by
greatly broadening the service remit. In addition to maintaining the engines
and providing spare components, Rolls-Royce will have responsibility for
managing the network of industrial suppliers.

Rolls-Royce will centre its support operations on the Typhoon Propulsion
Support Facility at RAF Coningsby, where the RAF's Typhoon squadrons are based.
From there, a team comprising both Rolls-Royce and RAF personnel will manage
the engine support for aircraft operations in the field and will also carry out
limited engine repairs.

The majority of engine repairs will be undertaken at the Rolls-Royce site at
Bristol, while the repair of modules and components will be managed at the
Rolls-Royce plant at Ansty, near Coventry.

Commenting on the award of the contract, Rolls-Royce Defence Aerospace Managing
Director Tony Wood said: "We have been providing complex support services for
older engines for some time. This new contract illustrates that we can deliver
the same service for the very newest engines with equal effectiveness. The RAF
now has a world-class engine-service solution to support its new world-class
aircraft."

NOTES TO EDITORS

 1. There are currently 19 operational Typhoons based at RAF Coningsby. The
    fleet will increase to approximately 55 aircraft at the end of the
    three-year contract in 2008.
   
 2. Rolls-Royce operates in four global markets - civil aerospace, defence
    aerospace, marine and energy. It is investing in technologies and
    capabilities that can be exploited in each of these sectors to create a
    competitive range of products. Annual sales total nearly £6 billion, of
    which 55 per cent are services revenues. The current order book stands at
    more than £21 billion.
   
For further information please contact:

Nick Britton
Communications Manager - Defence
Rolls-Royce plc
Tel: [phone]
Email: [e-mail]