Contract

Rolls-Royce PLC
31 May 2000


ROLLS-ROYCE SIGNS CONTRACT WITH MOD FOR NIMROD SPEY SUPPORT 

Rolls-Royce plc has signed a contract worth more than £50 million with the
Ministry of Defence covering the total support of the Spey 250/251 engine
fleet powering the Royal Air Force Nimrod maritime reconnaissance aircraft.

The 12-year contract is another example of Smart Procurement in action, with
Rolls-Royce assuming responsibility for all engine support activity for the
fleet of 26 Nimrod aircraft currently in service, ensuring the RAF can deploy
Nimrod wherever and whenever operational requirements demand.  

The contract was signed at the Defence Logistics Organisation base at RAF
Wyton.  Leader of the Nimrod Integrated Project Team David Hetherington said
that Rolls-Royce and MOD personnel had worked well together to find a
long-term solution benefiting both the engine supplier and its customer.  He
added:  'It reflects our confidence that the partnering concept is the right
way forward for this, and other projects in the future.' 

Derek Wilding, Rolls-Royce Vice President UK MOD Support, said:  'This is the
first time we have taken on total support of an existing project through the
end of its operational life.  It builds on the Rolls-Royce philosophy of
providing customers with total support solutions for their products.'
 
Rolls-Royce will handle all levels of support beyond maintenance of installed
engines.  The management of all Spey assets and provision of technical support
will be undertaken by Rolls-Royce in Bristol, with engine repair and overhaul
performed at East Kilbride, near Glasgow.

For further information please contact:

Maria Weber
Communications
Rolls-Royce plc
Tel: [phone]
e-mail: [e-mail]
Home Page:  www.rolls-royce.com