Redevelopment go-ahead

December 19th 2005

NEXT STAGE IN REDEVELOPMENT OF BRISTOL AEROSPACE FACILITIES TO GO AHEAD IN THE 
                                   NEW YEAR                                    

Rolls-Royce plc, the world leading power systems company, confirmed today that
it will go ahead in the New Year with Phase Two of the redevelopment of its
Defence Aerospace facilities in Bristol.

Work will begin in January on new buildings for the assembly of engines for the
Typhoon, Hawk and Joint Strike Fighter aircraft and for the Group's helicopter
programmes. Phase Two will also see the construction of a new services building
that will include training and occupational health facilities as well as a new
restaurant.

Once completed, the redevelopment will allow the Group to concentrate all of
its activities in the local Patchway area into a modernised single site,
leaving the current East Works vacated and available for separate commercial
development.

Phase Two will complete a £75 million investment programme by Rolls-Royce in
Bristol, which began earlier this year. Work on Phase One's construction of a
new Turbines and Component Services plant is well underway.

Commenting on the Phase Two decision, Rolls-Royce Defence Aerospace Managing
Director Tony Wood said: "This is one of the most significant investments that
Rolls-Royce has made in Bristol for over 40 years and the new facilities should
secure the future of our activities in Patchway for many years to come. I would
like to thank all of our local employees, who have made such a big contribution
to building a successful business case for this investment. We can look forward
now to a working environment that will reduce costs, lift our productivity and
give us a base in Bristol of which we can all be proud."

For further information please contact:

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