Re Contract

15 June 2009

       ROLLS-ROYCE SIGNS $150M TOTALCARE® EXTENSION WITH CONDOR AIRLINES       

Rolls-Royce, the global power systems company, today announced that the German
carrier Condor Airlines has signed a five-year extension to its existing
TotalCare® long-term services agreement. The contract covers the airline's
fleet of Boeing 757s powered by RB211-535E4 engines.

The new contract is worth around $150 million and extends the previous 10-year
agreement that was signed in 1999.

Uwe Balser, Condor Managing Director, said: "This agreement marks a further
development in our valued relationship with Rolls-Royce. TotalCare® provides us
with engine support services, which are tailored to our operation. This enables
us to manage costs and focus on our customers' needs."

Dan Pedley, Rolls-Royce Customer Business Director - Central Europe, said: "We
are delighted to announce this extension of our long term services agreement
with Condor. The renewal of this contract strengthens our partnership and
recognises the value of our aftermarket support package."

Condor carries almost seven million passengers a year and operates a fleet of
13 Rolls-Royce powered Boeing 757s.

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. In each of
    these sectors, Rolls-Royce offers value-added long-term service agreements 
    for customers and operators.

 2. In 2008, Rolls-Royce and its partners invested £885 million on research and
    development, two thirds of which had the objective of further improving the
    environmental aspects of its products, in particular the reduction of noise 
    and emissions.

 3. Annual sales were £9.1 billion in 2008, of which 52 per cent came from
    services revenues. The firm and announced order book at the end of 2008
    stood at £55.5 billion, providing visibility of future levels of activity.
   
 4. TotalCare®, tailored for individual operators, offers a range of services
    from Rolls-Royce covering all aspects of asset management in support of its
    Civil Aerospace products. Building on the company's knowledge, experience
    and infrastructure, these services include elements such as predictive
    maintenance, logistics management, and global repair and overhaul
    offerings. TotalCare® can remove uncertainties from engine management and
    improve operational reliability for operators through a mutually aligned
    business relationship.
   
 5. An RB211-535 powered Boeing 757 takes off or lands every 25 seconds. The
    RB211-535E4 has the lowest combination of in-flight shutdown rate and shop
    visit rate in the airline industry, a factor that has resulted in the
    RB211-535E4 being the airlines first choice to power the Boeing 757. The
    RB211-535E4 achieved the world record for on-wing life without removal for
    over 40,000 hours over nine years in operation. This is equivalent to
    18,000,000 miles flown, or 37 return trips to the moon. It stays on wing
    almost twice as long as any other engine on the airframe.
   
 6. The RB211-535E4-powered Boeing 757 is the quietest airliner in its class,
    meeting both Chapter 3 and Chapter 4 limits with a large margin, allowing
    it to power aircraft in and out of airports with strict local noise limits.
    This coupled with Phase 5 combustion technology makes the RB211-535E4 the
    most environmentally friendly engine for the Boeing 757 and the 
    Tupolev Tu-204.
   
 7. Rolls-Royce Deutschland employs around 3,000 at its sites in Dahlewitz near
    Berlin and Oberursel near Frankfurt am Main. The BR700 family of engines,
    developed in Dahlewitz, are the first German civilian jet engines to have
    international certification. The Oberursel plant manufactures components
    for the Rolls-Royce BR700 and RTM322 helicopter engines. The plant also
    maintains and overhauls small gas turbines for civilian and military
    applications. Responsibility for the V2500 turbofan programme, its
    technology management and final assembly also now takes place in Germany.
   
For further information please contact:

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

Amanda Price
Investor Relations Manager
Rolls-Royce plc
Tel: [phone]
[e-mail]