Executive Share Option Plan

Rolls-Royce PLC
27 March 2001

                                                                 27 March 2001


                         EXECUTIVE SHARE OPTION PLAN


Rolls-Royce plc announces that on 26 March 2001 options were granted to
executive directors under the rules of the Rolls-Royce 1999 Executive Share
Option Plan (the Plan) at an option price of £2.16 per share as follows:-

                                                  NUMBER OF OPTIONS

SIR RALPH ROBINS                       171,297
J E V ROSE                             254,630
J P CHEFFINS                           173,612
C H GREEN                              162,038
J M GUYETTE                            179,161
P HEIDEN                               173,612
P C RUFFLES                            291,667
R T TURNER                             120,371


Exercise of these options may normally only occur from the third anniversary
of grant and is generally subject to the satisfaction of a corporate
performance target.


In addition, on 26 March 2001 supplementary options were also granted under
the Plan at an option price of £2.16 per share to the executive directors
listed below. Exercise of the supplementary options is subject to the
satisfaction of a more onerous corporate performance target and the option
holder meeting various personal shareholding requirements.

                                                  NUMBER OF OPTIONS

SIR RALPH ROBINS                                                        685,186
J E V ROSE                                                            1,018,519
J P CHEFFINS                                                            694,445
C H GREEN                                                               648,149
J M GUYETTE                                                             716,641
P HEIDEN                                                                694,445
R T TURNER                                                              481,482


For further information please contact:

Tim Blythe

Director - Corporate Communications

Peter Barnes-Wallis

Director - Financial Communications

Rolls-Royce plc

Tel:     [phone]

Fax:      [phone]