Helicopter Engine Contract

Rolls-Royce PLC
21 June 2001



                                            Paris - June 21, 2001

         ROLLS-ROYCE TURBOMECA SIGNS $1 BN HELICOPTER ENGINE CONTRACT

Rolls-Royce Turbomeca announced today (June 21) that it had signed a $1
billion (Euros 1.1 billion) contract at the Paris Air Show to supply RTM322
engines for the 399 NH90 helicopters ordered by Germany, Holland and France.
The contract was signed yesterday (June 20) between Rolls-Royce Turbomeca and
Eurocopter for the

supply of production RTM322-01/9 engines to NH Industries.

Rolls-Royce Turbomeca is a 50:50 joint venture between Rolls-Royce plc and
Turbomeca, part of the Snecma group.

Germany, Holland and France announced a year ago that they had selected the
RTM322 for their NH90 helicopters. The contract signed yesterday gave the
go-ahead for the first batch of 254 production engines to be manufactured and
includes support preparation for the engines throughout their lives. It also
sets out the framework terms and conditions for all future batches.

RTM322 engines will power up to 219 German, 160 French and 20 Dutch NH90
helicopters. Engine components will be manufactured in each country, with
engines being finally assembled by Rolls-Royce Deutschland - Germany's only
full-system aero-engine manufacturer; by Turbomeca in France and, possibly,
other parties.

Emeric D'Arcimoles, Chairman of Rolls-Royce Turbomeca, said: 'This contract
signing formalises the selection of the RTM322 for NH90. This is the fourth
application for the RTM322 which has excellent prospects for the future as the
power system of choice for the medium-lift multi-engine helicopter market.'

The RTM322 has been in service since 1998. Nearly 300 production engines have
been delivered and are in service on EH101 Mk 1 and Mk 3 in the Royal Navy and
Royal Air Force and the Apache AH Mk 1 in the British Army.

For more information please contact:

Rolls-Royce Media Centre at the Paris Air Show

Hall 2A, Stand No C20

Tel: [phone]

Fax: [phone]


Frederic Dalakupeian

Head of Marketing and Sales Promotion

Turbomeca

Tel: [phone]