Re Agreement

Rolls-Royce PLC
19 February 2002


19 February 2002


ROLLS-ROYCE SIGNS US$2 BILLION AGREEMENT TO
POWER NEXT-GENERATION GULFSTREAM V-SP AIRCRAFT


Rolls-Royce plc announced today (19 February) that it has signed an agreement
with Gulfstream Aerospace Corporation for up to US$2 billion worth of engine
business for Rolls-Royce over the next 10 years.


Rolls-Royce will deliver up to 600 upgraded BR710 engines, 300 firm and 300
options, to power the new twin-engine Gulfstream V-SP business jet aircraft. The
BR710, produced by Rolls-Royce Deutschland at its Dahlewitz facility near
Berlin, is the sole powerplant for the Gulfstream V and Gulfstream V-SP.


Bill Boisture, President and Chief Operating Officer, Gulfstream Aerospace
Corporation, said: 'Gulfstream continues to be committed to providing its owners
and operators with the most reliable engines in the industry. Our long-term
partnership with Rolls-Royce has evolved into a strategic alliance wherein both
parties work toward a final product that delivers safety, performance,
reliability and comfort.'


Ian Aitken, President - Corporate Aircraft, Rolls-Royce, said: 'This new
flagship aircraft benefits from continued investment by Rolls-Royce in its
products. We are confident Gulfstream V-SP operators will appreciate the proven
capabilities of the BR710 and the performance and efficiency of the aircraft.
This agreement will also extend our relationship with Gulfstream past the
50-year mark.'


Two Rolls-Royce BR710 turbofans powered the GV-SP during its first flight on 31
August 2001, four weeks ahead of schedule. The aircraft and engines exceeded
expectations and flight-testing is proceeding toward Federal Aviation
Administration (FAA) aircraft and engine certification in the fourth quarter of
2002.


This enhanced version of the BR710, capable of delivering 14,000lb to 17,000lb
of thrust, will enable the GV-SP to achieve exceptional speeds.
Its power throughout the flight envelope, and its fuel efficiency, make it the
most suitable engine for new generation, ultra long-range business jets.


The Gulfstream V-SP offers a range of 6,750 nautical miles at .80 Mach, a
250-mile improvement over the Gulfstream V, which provides an extra margin of
performance, not only on ultra-long range flights, but also on shorter-range,
higher-speed missions. The GV-SP is capable of flying 5,000 nm at .87 Mach - a
400-mile advantage over the GV - and 6,000 nm at .85 Mach, a 300-mile advantage.


BR710-powered aircraft have set many speed, range and altitude records since the
engine first entered service in 1997. In addition to efficiency and performance,
the engine offers low noise and excellent emission characteristics, ensuring
unrestricted access to local airports worldwide.


Certificated in August 1996, the BR710 is also the powerplant for the Bombardier
Global Express ultra long-range business jet and the Bombardier Global 5000
super large business jet. Additionally, it has been selected to power the BAE
SYSTEMS Nimrod MRA4, the UK's new maritime reconnaissance aircraft. Another
member of the BR700 family, the larger BR715, is the sole powerplant for the
Boeing 717 passenger jet.


Today's agreement extends a relationship between the two companies which began
in 1958 when the Gulfstream I aircraft entered into service, powered by the
Rolls-Royce Dart engine. Since then, Rolls-Royce has delivered more than 2,500
Dart, Spey, Tay and BR710 engines for the complete range of Gulfstream aircraft.


In 2001 the corporate aircraft engine market was worth US$2.5 billion, of which
Rolls-Royce had approximately a 32 per cent total value market share. The
corporate aircraft sector covers the entire range of products from 6-seater
entry-level business jets requiring 1,800lb of thrust, to business jetliners
requiring 27,000lb of thrust. With a long-standing position in this market,
Rolls-Royce is a world leader in developing, manufacturing and servicing engines
for aircraft produced by Bombardier, Cessna, Embraer and Gulfstream. Through its
participation in joint ventures, Rolls-Royce also provides engines for corporate
aircraft manufactured by Cessna, Raytheon, Sino-Swearingen with Williams Rolls,
and for Airbus with International Aero Engines.


NOTE TO EDITORS:


Rolls-Royce is a global company providing power for land, sea and air. It
employs some 42,000 people in more than 30 countries, including over 26,000 in
the UK, 5,000 in the rest of the Europe and over 8,000 in North America.  The
company has a balanced business portfolio with leading positions in civil
aerospace, defence aerospace, marine and energy markets. With annual sales of
around £6 billion and a forward order book of nearly £15 billion, its technology
is applied over a wide range of products which generate high-value services
throughout their operational lives.


Rolls-Royce aerospace businesses have the broadest range of products in the
world. They have customers using both fixed and rotary wing aircraft in over 150
countries, including more than 500 airlines, 2,400 corporate and utility
operators and 160 armed forces.


Rolls-Royce is also a global leader in marine propulsion, engineering and
hydrodynamic expertise, with a broad product range and full systems integration
capability. More than 2,000 commercial marine customers and over 50 navies use
Rolls-Royce propulsion systems and products.


In the energy markets, the company has supplied more than 5,000 units to
customers in nearly 120 countries and is investing in new products and
capabilities for the oil and gas industry and for distributed electricity
generation.


The company has a total of 55,000 gas turbines in service worldwide and has
pioneered gas turbine technology for aerospace, electricity generation and
marine propulsion. It is involved in major future programmes in these fields,
including the world-leading Trent aero engine family, WR-21 marine engine,
leading-edge water jet propulsion systems, and combat engines for Eurofighter
Typhoon and the Joint Strike Fighter.


For further information, please contact:


Norbert Burgner
Director Communications and Public Relations
Rolls-Royce Deutschland Ltd & Co KG
Tel: [phone]
Fax: [phone]
Email: [e-mail]


Leslie Wilder
Senior Manager, Corporate Communications
Rolls-Royce North America, Inc.
Tel: [phone]
Fax: [phone]
Email: [e-mail]


Website:  www.rolls-royce.com



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