Statement re Eurobond

2 March 2004

            Rolls-Royce Eurobond issue three times over-subscribed             

Rolls-Royce plc priced today a new 7-year €750 million Eurobond at a level of
mid-swaps +78 basis points, following the completion of a successful four-day
European road show.

The order book at €2.25 billion was three times over-subscribed. The issue
carries a coupon of 4.500 per cent and was placed with over 200 institutional
investors with a broad geographical placement.

Mark Morris, Group Treasurer at Rolls-Royce, said: "We have been delighted with
the level of interest shown by investors and the success of the transaction
which follows the group's 2003 financial results which were well received and
in line with expectations".

The group, which last accessed the Eurobond market in June 2000 took advantage
of the current favourable conditions to return to the market. The transaction
was to refinance existing facilities and was documented under Rolls-Royce's £
1.25 billion Euro Medium Term Note (EMTN) programme. The new issue carries the
guarantee of Rolls-Royce Group plc. BNP Paribas, Citigroup and JP Morgan acted
as joint-bookrunners on the transaction.

For further information please contact:

Peter Barnes-Wallis

Director of Financial Communications

Tel: [phone]