Re Contract

20 July 2010

 ROLLS-ROYCE AWARDED USD $70 MILLION ENGINE SUPPORT SERVICES CONTRACT FOR THE  
                       CANADIAN AIR FORCE CC-130J FLEET                        

Rolls-Royce, the global power systems company, has been selected by Lockheed
Martin as the in-service support provider for the engines on the CC-130J
military transport aircraft flown by the Canadian Air Force. The base contract,
valued at more than USD $70 million, will provide Lockheed Martin with
logistics support for the AE2100 D3 engines for the next six years. The
contract has a potential value exceeding USD $260 million over the life
expectancy of the fleet.

Under this contract, Rolls-Royce will be providing all engine management and
repair, logistics support and on-site technical support for the engine.
Rolls-Royce will partner with StandardAero of Winnipeg, Manitoba, to provide
engine depot-level repair services to the Canadian Air Force. This partnership
supports Lockheed Martin's Industrial and Regional Benefits obligation to
Canada, which resulted from the Tactical Airlift (CC-130J) contract awarded to
Lockheed Martin in December 2007.

Dan Korte, Rolls-Royce's President-Defence said: "Rolls-Royce is the world
leader in enginesfor military transport aircraft, and we are proud to partner
with Lockheed Martin to support the CanadianForces CC-130J fleet.Together we
will deliver a proven, innovative support solution to exceed the customer's
operational readiness requirements."
 
The performance-based logistics contract, modelled after other successful
MissionCareâ„¢ contracts, provides a comprehensive propulsion support package
customized to meet the needs of the Canadian Air Force's CC-130J aircraft on a
per engine flight hour basis.

Rolls-Royce has been a long-term supplier to the Canadian Forces with
propulsion systems powering several aircraft fleets for the Canadian Air Force,
including the current T-56 powered C-130 fleet, the T-56 powered CP 140 Aurora
P3 fleet, and the Adour powered Hawk Trainer fleet for the NATO Flight Training
Center (NFTC) in Canada program. The new Canadian CC-130Js are powered by four
Rolls-Royce AE 2100D3 advanced turboprop engines.

NOTE 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. As a result of this strategy, Rolls-Royce today 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, with an
    installed base of 54,000 gas turbines.
   
 3. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing
    and service facilities in 50 countries. The Group has a strong commitment
    to apprentice and graduate recruitment, and to further developing employee
    skills.
   
 4. In Canada, Rolls-Royce has a diversified aero and industrial engine
    facility serving more than 600 customers in 30 countries worldwide near
    Montreal International Airport. The Group began local operations in 1947.
    The facility has serviced over 4,500 engines to date in its comprehensive,
    modern facility. Customers of Rolls-Royce Canada include airlines,
    corporate operators and governments of Canada, the United States and other
    nations around the world.
   
 5. In 2008, Rolls-Royce was selected as the propulsion system provider for the
    Canadian Air Force's newly contracted fleet of 17 Lockheed Martin CC-130J
    tactical lift aircraft. Lockheed Martin delivered the first of 17 Canadian
    CC-130J Super Hercules tactical airlift aircraft on June 4, 2010.
   
 6. The AE 2100D3 is a lightweight, modular turboprop engine with 
    4,600 shaft-horsepower. The "common core" AE engine line is produced by
    Rolls-Royce and manufactured in Indianapolis, Ind. Along with the AE 3007
    and AE 1107C-Liberty, the proven engine line has totalled more than 
    35 million hours of service.
   
 7. AE 2100-D3 engines power C-130J Hercules aircraft in use by the 
    U.S Air Force, Marine Corps, Coast Guard; plus, the Royal Air Force, 
    the Royal Australian Air Force, the Italian Air Force, the Royal Danish Air Force,
    the Royal Norwegian Air Force, and the Canadian Forces.
   
 8. Rolls-Royce has committed to providing a number of high technology
    Industrial and Regional Benefit (IRB) projects in Canada. A number of
    Canadian companies based across Canada will participate in these projects,
    which represent a diverse cross section of Aerospace technologies involving
    engine repair, testing and manufacture, as well as leading edge research
    and development activities.
   
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