ROLLS-ROYCE EXPANDS GLOBAL CAPABILITY

20 November 2007

                     ROLLS-ROYCE EXPANDS GLOBAL CAPABILITY                     

Rolls-Royce today announced plans to invest in two new aero engine facilities
in Singapore and in the Commonwealth of Virginia in the United States. The
Company had previously announced that it was considering possible locations in
Asia and the US.

Over the last decade, Rolls-Royce has established a strong position in global
markets. In the light of this success, the Company is investing in new
capability in order to meet the increasing needs of its global business and its
growing customer base around the world.

The decision to locate the new facilities in the US and Singapore has been
driven by three strategic considerations: the attractions of locating major
facilities close to customers in two of the largest and fastest growing
aerospace markets in the world; the business continuity benefits that will
arise from locating the assembly and test of Trent engines on two continents;
and a reduction in the Company's exposure to the dollar.

Sir John Rose, Rolls-Royce Chief Executive, commented: "These latest
investments in world-class facilities are further evidence of our success in
aerospace markets and the continuing trend towards the globalization of our
operations. They also build on our existing international presence and
relationships and will bring us closer to key customers in Asia and the US."

Rolls-Royce has become a global company, with 45 per cent of its Research and
Technology, 40 per cent of its employees and 50 per cent of new programmes,
already located outside the United Kingdom. At the same time, the Company has
maintained its commitment to the UK and over the last five years, has invested
£837 million in UK capital projects, which accounts for 80 per cent of its
worldwide capital investment over this period.

The total investment in these two new facilities, which amounts to £150 million
over the next five years, will comprise two elements:

Singapore

In the light of the Company's success in the modern wide-body aircraft market
and the need to develop increased capacity, Rolls-Royce will build a new
facility in Singapore to assemble and test large civil engines, starting with
the Trent 1000 for the Boeing 787 and the Trent XWB for the Airbus A350 XWB.
Together with its existing UK facility in Derby, this will provide the Company
with a dual sourcing capability for the assembly and test of large civil
engines, including future new versions of the Trent engine.

The Company's Derby facility is planned to remain the centre of expertise for
large civil engines, with the capability to design and develop these engines.
It will also continue to assemble and test the Company's portfolio of large
civil engines.

The new facility will be located in an Aerospace Park at Seletar in the north
of Singapore and will be fully operational by the end of 2009. It will employ
up to 330 people depending on customer demand and will receive support from the
Singapore Economic Development Board.

The establishment of this modern "factory of the future" represents an
important step forward in the development of the Trent programme and in the
Company's wider relationship with Singapore.

Commonwealth of Virginia

The new facility in the Commonwealth of Virginia will assemble and test the
RB282, the engine selected in June by Dassault to power its new super midsize
corporate jet and potentially the first in a family of small engines for the
corporate and regional jet market. More than 90 per cent of corporate aircraft
are manufactured in the US, which is today the most significant market for
these products.

The development and production proving programmes for the RB282 will be
undertaken in the UK at recently completed facilities in Bristol.

The new facility in the Commonwealth of Virginia will also have the capability
to undertake blisk manufacture for the F136 engine for the Joint Strike Fighter
(JSF). It will also provide the Company with options for future advanced
manufacturing activities as opportunities arise.

The new facility will be located at Prince George County, Virginia and will be
fully operational by the end of 2009. The Commonwealth of Virginia and Prince
George County will provide economic incentives to support the project. This
investment builds on the Group's strong presence in North America and over time
is expected to create around 500 jobs in the Commonwealth of Virginia, assuming
the F136 programme proceeds to volume production.

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, operates in four global markets - civil
aerospace, defence aerospace, marine and energy. It invests in core technology,
capability and infrastructure that can be applied across these sectors to take
a competitive range of products to market. These investments create high
barriers to entry.

2. Rolls-Royce is a global company. It employs 38,000 people across 50
countries, with 15,000 or 40 per cent located outside the UK. Of its firm and
announced order book of £35 billion at June 2007, around 90 per cent relates to
orders secured outside the UK.

3. The Company now has a total of 54,000 gas turbines in service worldwide,
which generate demand for high-value services throughout their operational
lives. It has a broad customer base comprising 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 120
countries.

4. Rolls-Royce has a 49 per cent share of the modern wide-body commercial
aircraft market, with its Trent engine having been selected to power a broad
range of new civil airline programmes, including the Trent 900 on the Airbus
A380, the Trent 1000 on the Boeing 787 and the Trent XWB on the Airbus A350
XWB.

5. Rolls-Royce is the leading provider of engines for today's business jets,
with a 34 per cent share of the market. The number of business jet applications 
powered by Rolls-Royce, including joint-venture engines, has increased from one 
to 13 over the last decade. The Company and its partners now power the world's 
fastest, longest range, largest and lightest business jets, plus a corporate jetliner.
They include aircraft built by Airbus, Bombardier, Cessna, Embraer, Gulfstream,
Raytheon and Sino Swearingen.

6. Rolls-Royce is a key team member on two aspects of the US Joint Strike
Fighter (JSF) programme, as a 40 per cent partner on the alternate engine
(F136) with General Electric and separately as a key partner providing the
vertical lift components for the short takeoff and vertical landing (STOVL)
variant.

7. A blisk is an engine component composed of a rotor and a blade, which has
been machined from a solid piece of material.

North America

8. Rolls-Royce is a significant and growing player in North America.  The
Company currently employs nearly 8,000 people across the US and Canada.  North
America is home to the global headquarters for several Rolls-Royce businesses
including Corporate & Regional Aircraft, Defense North America, Helicopter
Engines and Energy.  Each year, Rolls-Royce businesses and operations in the
region generate more than $3 billion in sales and to date, the company has
invested over $1 billion in the US. 

9. The US Department of Defense is the Company's largest government customer
worldwide.  Rolls-Royce is on four of the top eight aviation programs in the US
President's budget - the Joint Strike Fighter (JSF), the V-22, the C130-J and
the E-2.  Rolls-Royce powers more than 2,800 fixed and rotary-wing aircraft
currently in service with all branches of the US Armed Forces. Rolls-Royce also
provides propulsion systems for two leading-edge US Navy programs. It is
supplying MT30 gas turbines, part of the Trent engine family, for the Littoral
Combat Ship and the DDG-1000 destroyer.  

10. Recent US contract announcements by Rolls-Royce include: a $500
million contract for the Joint Cargo Aircraft; contracts worth over $300
million for Adaptive Versatile Engine Technology (ADVENT) and the Highly
Efficient Embedded Turbine Engine (HEETE); continued funding for the
GE-Rolls-Royce Fighter Engine Team's F136; a $700 million production contract
for the AE1107C-Liberty engine that powers the V-22 tiltrotor aircraft for the
US Navy and US Marine Corps; and a $66 million renewal of an engine services
contract for the F405 engines on the US Navy's T-45 training aircraft.

Singapore

11. Rolls-Royce is already a major player in Singapore's aerospace industry,
accounting for over ten per cent of the country's aerospace output. Singapore
Airlines (SIA) has been a major Rolls-Royce customer for Trent engines since
1995 and BOC Aviation, formerly Singapore Aircraft Leasing Enterprise (SALE),
Silkair and all the budget carriers operating out of Singapore use the V2500
engine for their A320 fleets.

12. Through the company's joint ventures with key local industry partner,
Singapore Airlines Engineering Company and activities in the Energy and Marine
sectors, Rolls-Royce currently employs over 1,000 people in Singapore. It also 
accounts for approximately five per cent of the total aerospace industry workforce.

Rolls-Royce has established relationships with Singaporean suppliers and
manufacturers, including the sub-contracting of aero-engine component
manufacture to Singapore Aerospace Manufacturing (SAM), a subsidiary of Accuron
Technologies.

13. Rolls-Royce is also engaged in research and development activities in
Singapore. Together with the Singapore consortium Enertek, the Company is
investing US$100 million in developing a commercially viable power system based
on fuel cell technology.

For further information on Rolls-Royce, visit www.rolls-royce.com

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Contact:

Caroline Harris
Director Corporate Communications 
Rolls-Royce plc 
Tel: [phone]
[e-mail]                   

Mark Alflatt                                                                                                        
Director of Financial Communications   
Rolls-Royce plc                        
Tel: [phone]              
[e-mail]