Re Contract

28 July 2010

                      ROLLS-ROYCE FINALISES CONTRACT FOR                       
                   ADDITIONAL ADOUR-POWERED HAWKS FOR INDIA                    

Rolls-Royce, the global power systems company, has finalised the contract for
the order of an additional 57 Adour-powered Hawk Advanced Jet Trainer aircraft
for the Indian Air Force and Indian Navy.

The Rolls-Royce engine contract with Hindustan Aeronautics Limited (HAL) is
worth up to £200 million and includes the first Adour engines for the Indian
Navy, which will operate 17 of the aircraft.

The BAE Systems Hawk will be powered by the Mk871 variant of the Adour which
will be assembled in Bangalore, India, in partnership with HAL.

HAL Chairman Ashok Nayak said: "Rolls-Royce has been our trusted partner 
since 1956, when HAL started producing the Orpheus engine, under licence. 
Since then the partnership has flourished on programmes like the 
Hawk Advanced Jet Trainer's Adour Mk871 engine, following on from the production 
of Adour Mk811 engines for the Jaguar.

"Once again, we are proud to partner with Rolls-Royce on a programme where
India's next-generation pilots will train on Advanced Jet Trainers powered by
Adour engines, which the two companies will co-produce." 

Chris Awde, Rolls-Royce Sales and Commercial Director - Defence, said:

"This follow-on order for the Adour engine is a huge vote of confidence, both
for the capabilities of the engine and the partnership we have developed with
HAL for over 50 years.

"This new fleet of Adour engines will bring many advantages to the Indian Air
Force and Navy. Pilots will benefit as the engine's performance and handling
make it ideally suited to training, while operating the Adour in the Hawk and
the Jaguar will continue to bring commonality benefits and savings.

"India is strategically important to Rolls-Royce and we will continue to look
at new programmes that expand our partnership in the future."

The Adour Mk871 shares a high degree of commonality with the Adour Mk811 that
powers the Indian Air Force Jaguar fleet.

The Adour engine has been developed by the joint venture company 
Rolls-Royce Turbomeca.

NOTES TO EDITORS

  * 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.
   
  * 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.
   
  * Annual underlying revenues were £10.1 billion in 2009, of which about half
    came from services revenues.  The firm and announced order book stood at 
    £58.3 billion at 31 December 2009, providing visibility of future levels of
    activity.
   
  * In 2009, Rolls-Royce invested £864 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 emissions.
   
  * 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.
   
  * The Rolls-Royce partnership with HAL began with the licensed production of
    engines in 1956 and has continued to progress with the two companies
    announcing the creation of a new manufacturing joint venture company,
    International Aerospace Manufacturing Private Limited, in March 2010.
   
  * Rolls-Royce has a long and proud history of partnership with India. In 1932
    the company supplied Gipsy engines to power Dragon Rapide DH-89 aircraft
    operated by Tata Airlines - the forerunner to Air India. In the defence
    sector, Rolls-Royce celebrated the 75th anniversary of its partnership with
    the Indian Air Force in 2008, a milestone that coincided with the induction
    of the latest Hawk Advanced Jet Trainers in India - powered by 
    Rolls-Royce engines, manufactured under licence by HAL.
   
  * Rolls-Royce Turbomeca is jointly owned by Rolls-Royce plc and Turbomeca.
    Since its formation in 1966, it has developed and produced more than 2,800
    Adour turbofan engines for the SEPECAT Jaguar, BAE SYSTEMS Hawk and
    Mitsubishi T-2/F-1 fleets.
   
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