Re Contract

17 February 2011

 ROLLS-ROYCE AWARDED US$246 MILLION ENGINE SUPPORT SERVICES CONTRACTS FOR 
                                C-130 AIRCRAFT                                    

Rolls-Royce, the global power systems company, has secured two major support
contracts, worth a total of US$246 million, to cover engines powering 
C-130 military transport aircraft in operation with the US and UK militaries.

Under a US$203 million MissionCare® contract modification, Rolls-Royce will
provide the US Air Force with comprehensive propulsion system services for its
fleet of C-130J aircraft. The aircraft are flown by the US Air Force, 
US Air Force Training Command, Air National Guard, US Air Force Reserve and 
US Air Force Special Operations Command.

The availability-based agreement covers the provision of logistics and
programme management support, engineering services, spares and technical data
for the complete propulsion system, including AE 2100D3 engines and 
Dowty R-391 propellers. The agreement exercises the fifth year of an existing 
contract.

Rolls-Royce has also signed a one-year contract extension, valued at over 
$43 million, for the support of the UK's C-130 military transport fleet. The
agreement was signed with Marshall Aerospace, the prime contractor for the
Hercules Integrated Operational Support (HIOS) programme, and provides
continued support for both `J' and `K' aircraft variants in service with the
Royal Air Force.

Rolls-Royce has teamed with Marshall Aerospace and Lockheed Martin to deliver
HIOS, a programme to improve overall availability and reduce support costs of
the fleet of C-130s.

Paul Craig, Rolls-Royce, Executive Vice President - Defence Services said:
"Rolls-Royce is the world leader in engines for military transport aircraft.
The award of these two important contracts highlights that we are trusted to
deliver innovative support solutions which provide the customer with both
increased engineavailability and reduced ownership costs."


NOTE TO EDITORS

 1. Rolls-Royce is a world-leading provider of power systems and services for
    use on land, at sea and in the air, and has established a strong position
    in global markets - civil aerospace, defence aerospace, marine and energy.
   
 2. As a result of this strategy, Rolls-Royce has a broad customer base
    comprising more than 500 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,500 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Annual underlying revenues were over £10.8 billion in 2010, of which more
    than half came from the provision of services. The firm and announced order
    book stood at £59.2 billion at 31 December 2010, providing visibility of
    future levels of activity.
   
 4. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing
    and service facilities in over 50 countries. Over 11,000 of these employees
    are engineers.
   
 5. In 2010, Rolls-Royce invested £923 million on research and development, 
    two thirds of which had the objective of further improving the environmental
    performance of its products, in particular reducing emissions.
   
 6. Rolls-Royce supports a global network of 28 University Technology Centres,
    which connect the company's engineers with the forefront of scientific
    research.
   
 7. The Group has a strong commitment to apprentice and graduate recruitment
    and to further developing employee skills.
   
 8. Rolls-Royce is the world's number two defence aero engine company with 
    160 customers in 103 countries. 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.
   
 9. Rolls-Royce has services agreements in place with all branches of the 
    US Military, including the Air Force, Marines, Army and Navy, plus the 
    Coast Guard.
   
10. The Indian Air Force has become the latest customer for the AE 2100 with
    the introduction of their Lockheed Martin C-130J transport aircraft.
   
For further information, please contact:

Investor relations:
Mark Alflatt
Director of Financial Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]

Media relations:
Josh Rosenstock
Head of Corporate Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]

www.rolls-royce.com