Disposal

Rolls-Royce PLC
2 January 2001



  ROLLS-ROYCE SELLS VICKERS TURBINE COMPONENTS BUSINESS


Rolls-Royce plc has sold the bulk of its Vickers Turbine Components business
to Royal Bank Private Equity Ltd (RBPE) for £74 million.

Under the agreement RBPE will take over a number of UK and US firms, employing
approximately 1,220 people, which make up the majority of Vickers Turbine
Components.

Two companies, Ross Catherall Ceramics and Vickers Pressings, will be
remaining with Rolls-Royce.

The businesses being sold specialise in precision-engineered products for the
automotive, aerospace and industrial gas turbine markets and were acquired by
Rolls-Royce in November 1999 as part of its acquisition of Vickers plc.

Paul Heiden, Finance Director, Rolls-Royce plc, said: 'This agreement offers
the best future for Vickers Turbine Components and enables Rolls-Royce to
increase its focus on its core business.'

Paul Isaacs, Regional Director of Royal Bank Private Equity, said: 'This
transaction involves quality, internationally-focused businesses with a
reputation for technical excellence and a blue chip customer and contact
base. We see both acquisition and organic growth opportunities and are keen to
offer our continued support.'

The net assets of the businesses sold are £60 million and £11 million of
goodwill will be written off as part of this transaction.


Notes to Editors

The employment and location breakdown of Vickers Turbine Components is:

Businesses being sold

Vickers Precision Machining: 300 employees based in Crewe Vickers Aerospace
Components: 200 employees based in Shrewsbury Vickers Airmotive: 45 employees
based in Shrewsbury Ross & Catherall: 160 employees based in Killamarsh, near
Sheffield Trucast: 310 employees based in the Isle of Wight Trucast Inc: 95
employees based in Newberry, South Carolina Certified Alloy Products Inc: 110
employees based in Long Beach, California

Businesses being retained by Rolls-Royce

Ross Catherall Ceramics, 240 employees based in Denby, near Derby
Vickers Pressings, 165 employees based in Newcastle upon Tyne


For further information please contact

Martin Nield
Head of Communications, Defence and Energy
Rolls-Royce plc.
Tel [phone]
e-mail: [e-mail]


Edward Carter
Quantum PR plc on behalf of
Royal Bank Private Equity Ltd
Tel [phone]