Statement re Boeing 717

Rolls-Royce Group - Statement in respect of the closure of the Boeing 717
programme

Rolls-Royce has noted Boeing's statement in respect of the closure of the
Boeing 717 line.

The Group had already considered the possibility of this line closure and the
financial impact, which will be modest, is contained within existing financial
guidance. Results for the year 2004 will be announced on February 10 2005.

Rolls-Royce Deutschland (RRD), the Group's wholly-owned subsidiary, is
responsible for the assembly of the BR715 engines that power the Boeing 717.
Output volumes have been low for several years and RRD is now working on a
broad range of both civil and military engine programmes. These include; the
highly successful BR710 engine, which powers Gulfstream and Bombardier
executive jets, as well as the Nimrod MRA4 maritime surveillance aircraft; the
Tay engine, which also powers Gulfstream executive jets; the RTM 322 helicopter
engine; and the TP 400-D6 engine for the new A400M European military transport
aircraft.


For further information please contact:

Peter Barnes-Wallis

Director of Financial Communications

Rolls-Royce Group plc

Ph: 020 7227 9241

Fax: [phone]

e-mail: [e-mail]