Re Contract

7 July, 2005

               ROLLS-ROYCE AWARDED £48 MILLION SERVICES CONTRACT               

Rolls-Royce has been awarded a £48 million contract to support the UK's fleet
of

AE 2100 engines that power the advanced C-130J Hercules aircraft. The contract
is effective from July 2005 and extends to March 2008.

Group Captain Steve Welburn, Leader of the Hercules Integrated Project Team,

said: "This contract provides a comprehensive package through the combined
efforts of the Rolls-Royce team in the UK and North America.

"The contract will ensure that the RAF's C-130J fleet benefits from an
efficient supply system, co-ordinated with a full range of technical support
services. As part of our long-term strategy for adopting a partnered approach
with industry, we are pleased to be able to provide improved AE2100D3 support
to operations at a reduced cost."

Nick Durham, Director of Services - Defence Aerospace, Rolls-Royce said:
"Through existing Mission Ready Management Solutions (MRMS) agreements, we've
demonstrated that Rolls-Royce can deliver superior engine support services to
our defence customers. On this project we are delighted to have the opportunity
of working with the RAF to provide a best value solution that meets the Defence
Logistics Organisation's need for a contract that incentivises availability of
engines for the Hercules fleet."

This type of availability-based support for the AE2100 engine has already
proved to be a success. Rolls-Royce is in the third year of a similar contract
with the US Marine Corp's fleet of C-130J transport aircraft and performance
ratings have exceeded customer requirements. This contract is valued at up to
$50 million.

NOTE TO EDITORS

 1. Services account for over half of the revenues of the Defence Aerospace
    business of Rolls-Royce. Approximately 1,400 military engines and 3,400
    modules are covered by Mission Ready Management Solution agreements.
   
 2. Current successful services contracts include the F405 (Adour) engine for
    the US Navy's T-45 Goshawk, the Spey engine in the Nimrod MRA2 and RB199
    modules in the Tornado flown by the UK's RAF.
   
 3. Rolls-Royce is the world's number one in providing engines for the
    transport sector, with approximately half the market.
   
 4. AE 2100 customers include the United States, United Kingdom, Australia,
    Italy, Denmark, Greece, and Japan. Nearly 800 AE 2100 engines have been
    delivered and over 4 million flying hours have been accrued.
   
 5. The AE 2100 is assembled at the Rolls-Royce plant in Indianapolis, Indiana,
    along with the other members of the AE engine family, the AE 1107C-Liberty
    and the AE 3007.
   
NOTE TO PICTURE EDITORS

Photos of the AE 2100 are available to download at

http://www.rolls-royce.com/media/gallery/defence/default.jsp

Visit www.thenewsmarket.com/rolls-royce for b-roll video about this story.
Registration and access to the media is free. You can download a MPEG2 file or
order a Beta SP tape.

For further information contact:

Nick Britton
Communications Manager - Defence Aerospace
Rolls-Royce
Phone: [phone]
Email: [e-mail]