£30m UK Support Contract Won

Rolls-Royce PLC
13 January 2000


ROLLS-ROYCE TURBOMECA WINS £30M RTM322 UK SUPPORT CONTRACT

Rolls-Royce Turbomeca has signed a contract worth more than £30 million with
the UK's Defence Helicopter Support Authority (DHSA) covering RTM322 engine
and module repair for all three UK armed forces.  

The Anglo-French joint venture, comprising Rolls-Royce plc and Turbomeca, is
involved in Europe's two newest and most advanced helicopter engines,
including the RTM322 that is expected to establish a strong position in the
medium-sized helicopter engine market during the next 20-30 years.
 
The contract covers the repair of engines, modules and line replaceable units.
It  includes all labour and spares.  Engine and module repair facilities
established at the Rolls-Royce facility at Ansty, near Coventry, and at
Turbomeca's Tarnos site in France, will support the UK Ministry of Defence
RTM322 fleet and other engine sales resulting from developing markets in
Europe and around the world.

RTM322 engines have been ordered for the 44 three-engined Merlin HM Mk1
helicopters for the Royal Navy, 22 Merlin HC Mk3s of the Royal Air Force, and
for 67 twin-engined WAH-64 (Apache) Attack Helicopters for the British Army
Air Corps.

The contract, which runs for five years until 2004, was signed at the DHSA's
headquarters at Yeovilton, Somerset, by Commodore Peter Kidner, of the DHSA,
and Rolls-Royce Turbomeca General Manager - Marketing, St John Williamson.

The contract signature was also attended by Turbomeca's Head of Commercial and
Contracts Policy, Bernard Sallefranque, and Head of Marketing and Contracts -
Military Engine Overhaul for Rolls-Royce, Allan Baillie.

Mr Williamson said:  'This inclusive labour and spares agreement is a
relatively new departure for the DHSA, as previous engine repair contracts
have been based on separate labour and 'spares call-off' contracts, which has
meant DHSA taking all spare parts provisioning risk.'

Negotiations continue with DHSA on engine post-design services and direct
spares elements which, together with field representative contracts, would
enable Rolls-Royce Turbomeca to offer the authority a comprehensive support
package for RTM322 engines in service with the UK armed forces.

The Royal Navy Merlin Mk 1 entered service with 700M Squadron at the RNAS
Culdrose in Cornwall in December 1998.  Merlin Mk3 is completing its
development, certification and qualification flight testing and is scheduled
to enter service in late 2000, while the WAH-64 is also undergoing flight
development with an in-service date in late 2000.


For more information please contact:

Gary Atkins, Communications Manager, Rolls-Royce plc
Tel:  [phone]            Fax:  [phone]
e-mail:  [e-mail]