Re Contract

07 April 2010

      ROLLS-ROYCE SIGNS £690 MILLION CONTRACT TO SUPPORT UK TORNADO FLEET      

Rolls-Royce, the global power systems company, has signed an innovative service
contract worth £690 million with the UK Ministry of Defence (MOD) to support
the Royal Air Force's fleet of Tornado aircraft.

Under the terms of the new RB199 Operational Contract for Engine Transformation
(ROCET2) contract, which runs until 2025, Rolls-Royce will provide the RAF with
a guaranteed level of availability for its RB199 engines, spares and ground
support equipment. The new agreement includes additional support elements, such
as the development of engine health monitoring techniques designed to improve
operational capability.

Rolls-Royce has been contracted to support the RAF's RB199 engine fleet since
December 2005 and has consistently met 100 per cent of the performance
requirements from the outset.

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

"Over the four-year period of the ROCET contract we have developed a
partnership approach with the UK Ministry of Defence and met every engine
availability target that has been set.

"The frontline Royal Air Force Tornado squadrons now enjoy a guaranteed level
of engine availability and significant savings in their engine support costs.
ROCET2 will enable us to deliver an even higher level of support for the next
15 years."

Rolls-Royce undertakes all aspects of RB199 engine support, including the
provision of replacement engines to meet customer demands, and technical
support both on-base and from the Rolls-Royce Operations Centre in Bristol.
     
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.
   
 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 38,000 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. Rolls-Royce is the world's number two defence aero engine company with 
    160 customers in 103 countries. The company offers engines in all key defence
    market sectors - combat, transport, helicopters, trainers, patrol, maritime
    and reconnaissance - and is well positioned on a number of new programmes
    that will deliver products over the next decade and beyond.
   
 5. Rolls-Royce support operations are centred at the Tornado Propulsion
    Facility at RAF Marham, but extend to cover two other Main Operating Bases
    at RAF Lossiemouth and RAF Leuchars where the RAF's Tornado squadrons are
    also based. From RAF Marham, a team comprising both Rolls-Royce and RAF
    personnel manages the engine support for aircraft operations in the field
    and also carries out some engine repairs. This will be augmented in 2010 by
    the transfer of the RB199 engine strip, build and test capability to the
    Rolls-Royce facility in Bristol.
   
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