Re Contract

22 December 2008

        ROLLS-ROYCE AWARDED £258 MILLION UK HELICOPTER SUPPORT CONTRACT        

Rolls-Royce has been awarded a £258 million contract by the Ministry of Defence
(MOD) to provide engine support to the UK's Sea King helicopter fleet.

The 10-year full availability-based agreement is the first of its type for
helicopter engines between Rolls-Royce and the MOD and offers a guaranteed 24/7
delivery of engines for the fleet. It covers all marks of Gnome engines that
power the 96 Sea Kings in service with the Royal Air Force and Royal Navy,
including the UK's search and rescue fleet.

Under the terms of the contract Rolls-Royce will undertake all aspects of
engine support, including the provision of replacement engines to meet customer
demands, and technical support both at operating locations and from the
Rolls-Royce Operations Centre in Bristol. The contract will be managed from the
company's Bristol site and the Yeovilton air base, with the main repair and
overhaul work undertaken at Rolls-Royce facilities in Ansty and Germany.

Commenting on the contract Martin Fausset, Managing Director of Rolls-Royce
Defence Aerospace, said:

"We recognise that both the MOD and Rolls-Royce teams have worked hard to
conclude this important contract. With the innovative techniques that
Rolls-Royce brings to engine support we can now provide the front line customer
a higher level of availability for operations at a guaranteed price."

Pete Worrall, Director General Helicopters in the MOD's Defence Equipment &
Support (DE&S) organisation, said:

"This innovative contract offers quantifiable benefits in both financial and
availability terms for the Sea King fleet.  We look forward to continued close
working with Rolls-Royce to deliver a reliable product to the front line"

NOTES TO EDITORS:

 1. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy.
   
 2. The Group has a broad customer base comprising more than 600 airlines,
    4,000 corporate and utility aircraft and helicopter operators, 160 armed
    forces, more than 2,000 marine customers, including 70 navies, and energy
    customers in nearly 120 countries. It employs around 39,000 people
    worldwide people in offices, manufacturing and service facilities in 50
    countries and has businesses headquartered in the UK, US, Canada, Germany,
    Scandinavia and China. This global presence allows the Group to access
    long-term international growth opportunities with its technology, presence,
    partnerships and people.
   
 3. Rolls-Royce is the world's number two defence aero engine company with 160
    customers in 103 countries.
   
 4. The company offers engines in all key defence market sectors - combat,
    transport, helicopters, trainers, patrol, maritime and reconnaissance - and
    is well positioned on a number of new programmes that will deliver products
    over the next decade and beyond.
   
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Mark Alflatt
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Nicky Louth-Davies
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