Re Contract

21 December 2005

             ROLLS-ROYCE SHARES IN €300m EUROJET SERVICE CONTRACT              

Rolls-Royce announced today that EUROJET Turbo GmbH, the leading European
military engine consortium of which it is a member, has signed a contract with
NETMA worth about €300 million to support the EJ200 engine powering the
Eurofighter aircraft.

This contract will assure full-scale in-service support for the engine
including all IT systems (electronic data processing for service support)
across Europe. The contract, which is worth around £58 million to Rolls-Royce,
runs up to 2009 and can be extended further.

The EJ200 is the world's leading technology military engine and is in service
with the air forces of Germany, Italy, Spain and the United Kingdom. Rapidly
accumulated in-service experience has confirmed the superior qualities of the
EJ200 engine.

Exceptional performance, excellent handling and highest reliability levels have
been demonstrated in the Eurofighter Typhoon, setting the trend for the future
of the programme and for export. The first export order of 18 aircraft has been
signed with the Government of Austria.

The EJ200 production programme is contracted to produce 1400 engines for
Eurofighter Typhoon. It is the largest military engine production programme
under contract in the world today.

With unprecedented performance, multi-mission capability and reliability, the
EJ200 is the best choice for next generation combat and trainer applications,
for which EUROJET can also offer a wide range of engine support concepts.

NOTES TO EDITORS:

 1. EUROJET Turbo GmbH is the leading European military aerospace engine
    consortium responsible for the development, production, maintenance,
    support and sales of the new generation EJ200 powerplant. The shareholders
    of EUROJET are Avio (Italy), ITP (Spain), MTU Aero Engines (Germany) and
    Rolls-Royce (UK).
   
 2. The EJ200 engine combines the leading technologies from each of the four
    European companies. The engine has been designed to fulfil the most
    demanding requirements (highest performance, optimum maintainability and
    low life cycle costs) set for next generation fighter and training
    aircraft.
   
 3. Like the aircraft, the engine is assembled in four assembly lines, one in
    each of the partner nations. The workshare reflects the number of aircraft
    and associated number of engines ordered by the respective partners.
   
For more information, please contact:

Nick Britton
Communications Manager - Defence Aerospace
Rolls-Royce plc
Tel: [phone]
Email: [e-mail]
Web www.rolls-royce.com