Risk&Revenue Sharing Partners

Rolls-Royce PLC
28 February 2001


                                                             28 February, 2001



                      RISK AND REVENUE SHARING PARTNERS

Rolls-Royce today announced a simplification of its accounting presentation of
risk and revenue sharing partners.

All receipts from risk and revenue sharing partners will be recorded as 'other
operating income'. In the past, receipts from partners have been treated as
credits to research and development or to turnover depending upon the nature
of the participation agreement.

In order to facilitate comparisons when 2000 preliminary results are announced
on Friday 2 March, re-stated figures for turnover and net research and
development are shown for the period 1996 to 1999. There is no impact on
earnings, cash or the balance sheet.


                                         1996  1997    1998        1999

                                         £m    £m      £m          £m
Group turnover                  reported 3912  4348    4496        4744
Group turnover                  restated 3887  4323    4471        4634
Adjustment to turnover                   (25)  (25)    (25)        (110)

Net research and development    reported (199) (216)   (173)       (215)
Net research and development    restated (217) (268)   (310)       (337)
Adjustment to net R&D                    (18)  (52)    (137)       (122)
Net R&D % of Group turnover     restated 5.6%  6.2%    6.9%        7.3%

Other operating income                   43    77      162         232

The presentation of payments to risk and revenue sharing partners remains
unchanged. They will continue to be recorded within cost of sales.

For further information please contact:

Peter Barnes-Wallis

Director - Financial Communications

Rolls-Royce plc

Phone:      [phone]

Fax:        [phone]

Email:      [e-mail]