Re Contract

February 3, 2009

ROLLS-ROYCE TO POWER V-22 OSPREY AIRCRAFT IN $222 MILLION CONTRACT MODIFICATION

Rolls-Royce today announced a contract modification of $221.7 million with the
Naval Air Systems Command (NAVAIR) to provide AE 1107C-Liberty engines and
services for the U.S. Marine Corps' MV-22 and the U.S. Air Force's CV-22 Osprey
tiltrotor aircraft.

The modification includes 96 engines for delivery in 2010 as well as,
Power-By-The-Hour®, for maintenance support. Most of the services work is
performed at Marine Corps Air Station New River in North Carolina; Naval Air
Station in Patuxent River, Maryland; Kirtland Air Force Base in New Mexico;
Hurlburt Field in Florida, with additional work at Indianapolis, Indiana and
Amarillo, Texas. Rolls-Royce produces the AE 1107C-Liberty engines at its
manufacturing facility in Indianapolis.

Dennis Jarvi, President Defense North America for Rolls-Royce, said: "We are
pleased that Rolls-Royce continues to partner with our customer to ensure the
success of the V-22 Osprey Program. The AE1107C-Liberty engine was designed to
provide maximum maneuverability and performance to the aircraft it powers. To
date, it has accumulated more than 75,000 flight hours on the V-22 aircraft,
many in harsh environment conditions."

In 2007, Rolls-Royce was awarded a $700 million production contract with NAVAIR
which included engines for aircraft installs plus spares, for deliveries
through 2013.

The V-22 tiltrotor aircraft, known as the Osprey, takes off like a helicopter
and flies like an airplane. Powered by twin Rolls-Royce AE 1107C Liberty
engines, V-22s fly at twice the speed, with three times the payload and up to
five times the range, of conventional helicopters. The U.S. government approved
full-rate production for the aircraft in September 2005.

NOTE TO EDITORS

 1. The AE 1107C engine is part of the "common core" AE engine line produced by
    Rolls-Royce, and provides more than 6,000 shaft horsepower. The reliable
    and proven AE engine line has accumulated more than 25 million flight
    hours.
   
 2. Rolls-Royce, the world-leading provider of power systems and services for
    use on land, at sea and in the air, operates in four global markets - civil
    aerospace, defence aerospace, marine and energy.
   
 3. It continues to invest in core technologies, products, people and
    capabilities with the objective of broadening and strengthening the product
    portfolio, improving efficiency and enhancing the environmental performance
    of its products. These investments create high barriers to entry.
   
 4. The success of its products is demonstrated by rapid and substantial gains
    in market share. The company now has a total of 54,000 gas turbines in
    service worldwide and they generate a demand for high-value services
    throughout their operational lives.
   
 5. Rolls-Royce has a broad customer base comprising 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 120 countries. Rolls-Royce is a technology leader, employing 38,000
    people in offices, manufacturing and service facilities in 50 countries.
   
For further information, please contact:

Mark Alflatt
Director of Financial Communications
Tel: [phone]
[e-mail]

Nicky Louth-Davies
Director of Corporate Communications
Tel: [phone]
[e-mail]