Rolls-Royce Joint Venture

Rolls-Royce PLC
28 September 2001

                                                             28 September 2001





              ROLLS-ROYCE OPENS NEW JOINT VENTURE IN PHILIPPINES


Rolls-Royce plc and its partner, the Philippine Aerospace Development
Corporation, today (28 September 2001) officially opened their first aero
repair and overhaul facility to service commercial and military customers in
East Asia.



Rolls-Royce Engine Services Limitada Inc. will provide maintenance services
for Rolls-Royce Model 250 engines, modules and accessories for operators of
civil and military helicopters and fixed-wing aircraft in the East Asia
region, including the Philippine government.



The facility is located in a new 1100 square-metre facility at the Berthaphil
Business Complex, an enterprise action zone in Pampanga, Philippines.  It may
be expanded to rework Rolls-Royce T56/501 turboprop engine, which powers,
amongst other air forces in the region, the Philippine's fleet of Lockheed
Martin C-130 Hercules aircraft.



Ian Lloyd, Managing Director, Aero Repair and Overhaul, for Rolls-Royce, said:
'For some time, a key part of our repair and overhaul strategy has been to
bring our business closer to our customers. This latest joint venture provides
a focal point for specialist aero engine maintenance in this important growth
region.'



The joint venture, in which Rolls-Royce has an 80 per cent share, has already
begun operations and is staffed by around a dozen local employees.   It is the
17th facility in the company's global services network. Last year, revenues
from aero repair and overhaul were $1.6 billion, a four-fold increase from
1995.  During the past three years, Rolls-Royce has doubled its market share
of repair and overhaul of its own civil engine products. It now repairs 47
different engine types for more than 400 customers. More than 1,500 engines
and 4,500 modules are overhauled in Rolls-Royce facilities each year.



For further information please contact:

Tim Blythe, Director - Corporate Communications

Rolls-Royce plc

Tel: [phone]

Website: www.rolls-royce.com