Statement re Contract

13 June, 2006

            Rolls-Royce WINS £110 MILLION HERCULES SUPPORT CONTRACT            

Rolls-Royce has won business worth £110 million to ensure engine availability
over the next five years for the UK Ministry of Defence's fleet of Rolls-Royce
powered C-130 Hercules transport aircraft, covering 244 engines.

The initial five-year contract is part of a longer agreement, for which the
firm value to Rolls-Royce has not yet been defined. Under the terms of the
contract, Rolls-Royce will provide all off-wing support for the engines in the
fleet until the out-of-service date of 2030 for the C-130J version.

Marshall Aerospace, the prime contractor for the overall Hercules Integrated
Operational Support (HIOS), awarded the engine support contract to
Rolls-Royce. Lockheed Martin is the third member of the HIOS team and together,
the three companies have developed a programme to improve overall availability
and reduce support costs of the fleet of C-130Ks powered by the T56 (130
engines) and C-130Js powered by the AE 2100 (114 engines).

This new arrangement is incremental to the £48 million contract signed in July
2005 for the support of the AE 2100 engines on the C-130J aircraft. In the 11
months since signature, Rolls-Royce has consistently delivered engine
availability above the contracted level.

Nick Durham, Director of Services, Rolls-Royce Defence Aerospace, said:

"We deliver support solutions tailored to the needs of individual customers via
our Mission Ready Management Solutions capability.

"We are now demonstrating day in and day out that we can provide unique and
cost- effective solutions that deliver all-round benefits and look forward to
teaming with the MoD, Marshall Aerospace and Lockheed Martin in the delivery of
enhanced service for the Hercules fleet."

NOTE TO EDITORS

 1. Services account for over half of the revenues of the Defence Aerospace
    business of Rolls-Royce.
   
 2. Over the last 12 months, Rolls-Royce has won MRMS contracts worth more than
    £400 million from the UK MoD.
   
 3. Other engines in the UK MoD's fleet covered by an MRMS arrangement include:
    the EJ200 for the Typhoon; the RB199 for the Tornado; the Gnome in the Sea
    King; and the Spey for the MR2 Nimrod.
   
 4. Rolls-Royce recently won services contracts to support AE 2100 engines on
    C-130J aircraft in use by the U.S. Air Force, Marines and Coast Guard, and
    the Royal Danish Air Force.
   
 5. Rolls-Royce is the world's number one in providing engines for the
    transport sector, with approximately half the market.
   
For further information please contact:

Nick Britton

Communications Manager - Defence

Rolls-Royce plc

Tel: [phone]

Email: [e-mail]