Re Contract

November 17, 2009

       ROLLS-ROYCE SIGNS $171 MILLION F-35 STOVL LIFTSYSTEM CONTRACT

Rolls-Royce, the global power systems company, has signed a $171 million
contract with Pratt & Whitney to supply the Rolls-Royce LiftSystem® for a
further 9 Short Take-Off and Vertical Landing (STOVL) variant F-35B Lightning
II aircraft as part of the third lot of Low Rate Initial Production (LRIP).

This order is the second production contract for Rolls-Royce as part of its
involvement in the JSF programme. The previous contract, for LRIP 2 and signed
in December 2008, was for $131m.

The Rolls-Royce LiftSystem comprises a LiftFan, Roll Posts and 3 Bearing Swivel
Module. Rolls-Royce will provide these through the propulsion system prime
contractor Pratt & Whitney, with module deliveries having already commenced in
July 2009 under the Long Lead provision within the contract. The scope of the
contract also includes spare hardware, production investment and sustainment
planning.

Simon Henley, Director for New Product Introduction at Rolls-Royce Defence
Aerospace, said:

"This new contract, together with the imminent first flight of the F-35 in
STOVL mode, shows the Rolls-Royce LiftSystem programme is now generating real
momentum and that Rolls-Royce technology is helping to bring a step change in
air combat technology.

"As the LiftSystem programme continues to gain momentum on both sides of the
Atlantic we are looking forward to supporting the flight trials with the
LiftSystem engaged in the F-35B at the Naval Air Station at Patuxent River".

Orders for the LiftSystem are expected to total over 600, with leading
customers including the US Marine Corps, The UK Armed Forces and the Italian
Navy. The F-35B variant is expected to remain in service well after 2050.

Rolls-Royce engineers in Bristol, UK and Indianapolis, US, are involved in
design and assembly of the LiftSystem, with component manufacture also taking
place at the Hucknall and Bristol sites in the UK.

This production contract follows on from the $1.1bn contract signed with 
Pratt & Whitney in 2001 to develop the F135 STOVL Propulsion System.

NOTES FOR EDITORS:

 1. Rolls-Royce, a 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. 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.
   
 2. Rolls-Royce is under contract to Pratt & Whitney for development of the
    LiftSystem components of the F135 STOVL Propulsion System. The contract
    signed with Pratt & Whitney in December 2001, which covers the design and
    development work of the STOVL elements during the System Development and
    Demonstration (SDD) phase of the programme, is worth $1.1 billion to
    Rolls-Royce over 10 years.
   
 3. The LiftFan, a 50-inch two-stage counter rotating fan capable of generating
    more than 20,000lb of thrust, is driven by the aircraft main engine and
    supplies the forward vertical lift. The 3BSM is a swivelling jet pipe
    capable of redirecting the rear thrust from the horizontal to the vertical
    position. It can rotate through 95 degrees in 2.5 seconds and passes
    18,000lb of thrust generated from the main engine. Aircraft roll control is
    achieved using the Roll Posts mounted in the wings of the aircraft, each of
    which provides further 1,950lb thrust from the main engine.
   
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]

Web www.rolls-royce.com