ROLLS-ROYCE SAYS PACE OF SERVICES GROWTH WILL I...

13 June, 2005

                   ROLLS-ROYCE SAYS PACE OF SERVICES GROWTH                    

                     WILL INCREASE WITHIN FLEET EXPANSION                      

Rolls-Royce said at the Paris Air Show today that, based on the current level
of deliveries, the number of its civil engines in service will increase by 40
per cent over the next five years, with half the fleet being managed through
the company's long-term service agreements.

Mike Terrett, President - Civil Aerospace, said: "At a conservative estimate,
assuming our civil engine deliveries continue at 2004 levels, the number of our
engines in service will rise from 11,000 today to 15,500 by 2010, with around
8,000 of those being managed under TotalCare packages."

This represents an 80 per cent increase in Rolls-Royce engines covered by
TotalCare by 2010 compared with the position at the end of 2004.

Around 60 per cent of the company's high-thrust Trent engine series for the
latest Airbus and Boeing widebody jets is managed under TotalCare, along with
90 per cent of its regional aircraft engines.

"With orders exceeding deliveries for the first time since 2001, the industry
is seeing a continuing recovery, and business has picked up more quickly than
anticipated," added Mr Terrett.

Technology initiatives

"Significant progress" continues to be made in improving engine emissions, said
Mr Terrett, with the most recent developments coming through the pan-European
ANTLE (Affordable Near Term Low Emissions) research programme, led by
Rolls-Royce.

ANTLE's technology demonstrator engine, a highly modified Trent 500, recently
completed a 30-hour test programme in Madrid, Spain.

"Analysis of initial data from combustor performance is encouraging, and in
line with earlier rig tests. We are targeting ANTLE - driven improvements which
include a 12 per cent cut in fuel consumption and a 60 per cent reduction in
NOx, compared with the best available technology in the mid 1990s," he said.

In the longer term, Rolls-Royce is also working to meet goals set by ACARE
(Advisory Council for Aerospace in Europe), which include a halving of current
noise levels, and an 80 per cent reduction in NOx, by 2020.

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Trent programmes

By the end of June, 13 of the 18 Trent 900s to support the A380 flight test
programme will have been shipped to Airbus, said Mr Terrett.

The first A380 has completed 19 flights since the A380's maiden flight on 27
April, accumulating 440 engine hours. The engines are handling well, and
performance is in line with predictions.

This is in addition to the 60-hour programme successfully completed by the
single Trent 900 on the A340-300 flying test bed.

Flight testing has been across the performance envelope of the A380. The
aircraft has now been flown from low speed stall conditions up to its maximum
speed of Mach 0.89. The Trent 900 has also taken the aircraft to its altitude
ceiling of 43,000 ft. Airbus has confirmed that the engines are meeting
fuel-burn targets.

Meanwhile, assembly of the first Trent 1000, being developed for the Boeing
787, is scheduled to begin in November, ready for a first test bed run at the
Rolls-Royce facilities in Derby, UK, in February 2006.

Major components such as fan cases and combustors have already been received
from programme partners.

The Trent 1000's maiden flight will take place in January 2007 on board a
Boeing 747-200 flying test bed. The aircraft, recently purchased by
Rolls-Royce, is currently being converted for its new role by L-3
Communications Integrated Systems in Waco, Texas, where it will be based.

Both the Trent 900 and Trent 1000 have launch engine status on their respective
programmes. The Trent 900 will enter service with Singapore Airlines next year
on the A380, while the Trent 1000 begins commercial operations with All Nippon
Airways in 2008.

NOTES TO EDITORS

1. Rolls-Royce civil aerospace sales last year totalled £3 billion,
representing 51 per cent of company revenues.

2. Income from services represented 59 per cent of civil business income,
rising 25 per cent to £1.8 billion.

3. Comprehensive, long-term service agreements are offered by Rolls-Royce as
TotalCare contracts for airlines, and under the banner of CorporateCare for
owners of corporate aircraft. Rolls-Royce has total responsibility for engine
fleet maintenance, with customers paying an agreed dollar rate per flying hour.

4. Rolls-Royce civil flying hours increased by 15 per cent last year compared
to 2003 as a result of recovery in world traffic growth and increased fleet
size.

5. Firm and option orders have been placed for over 1,900 Trent series engines
by 46 customers and operators. The Trent family has a 50 per cent market share
on the latest generation of widebody airliners from Airbus and Boeing.

6. The Trent family celebrated ten years in service in March 2005. The first
variant, the Trent 700, began commercial operations on the A330 with Cathay
Pacific in 1995.

7. Over 40 per cent of the world's regional airlines operate Rolls-Royce
engines.

8. Rolls-Royce is the leading engine supplier for business jets, winning 34 per
cent of the $2 billion corporate aircraft engine market last year.

NOTE TO PICTURE EDITORS

A selection of Rolls-Royce civil aerospace images is available to download at

http://www.rolls-royce.com/media/gallery/civil/civil03.jsp

Visit www.thenewsmarket.com/rolls-royce for a choice of civil business b-roll.
Registration and access to media is free. You can download an MPEG2 file, or
order a Beta SP tape.

For further information contact:

Martin Johnson

Vice President, Communications

Rolls-Royce

Mob: [phone]

Email: [e-mail]