Stmnt re Exostar

Rolls-Royce PLC
15 June 2001

                                                                 15 June, 2001



                ROLLS-ROYCE JOINS EXOSTAR E-COMMERCE EXCHANGE

Rolls-Royce plc announced today (15 June) that it has joined the Exostar
business-to-business online exchange.

Exostar, based in Washington DC, USA, is an independent, global e-marketplace
for the $400 billion aerospace and defence industry.

Rolls-Royce will become the sixth partner in Exostar, with a 17 per cent
shareholding and a seat on its main board. Existing Exostar members are BAE
SYSTEMS, Boeing, Lockheed Martin and Raytheon. Technology provider CommerceOne
also has a stake.

Exostar will now become a principal method for transactions by Rolls-Royce
with its suppliers in aerospace markets. Its services support the objectives
of Rolls-Royce to reduce procurement costs, increase design collaboration and
to work more effectively with customers, partners and suppliers.

John Rose, Chief Executive of Rolls-Royce plc, said: 'Exostar will allow us to
reduce material and procurement costs, shorten lead times and reduce our
inventory. It will also enable us to collaborate more effectively with
partners on designs for future projects. Exostar will allow design teams to
hold shared, secure information which can receive input from around the world.
This will allow us to bring ideas to life in the marketplace more quickly,
enabling a rapid response to customer requirements.'

Rolls-Royce will continue to develop content-rich portals providing customer
services such as aeromanager.com, and enginedatacentre.com being offered by
the Rolls-Royce joint venture company Data Systems & Solutions. These services
are already in use with a number of customers, helping them to improve the
overall management of in-service equipment.

Exostar Sales and Marketing Vice President Steven O'Sullivan said: 'The
addition of Rolls-Royce enhances our value proposition to the common supplier
base of all founding partners through system standardisation and reduced
reliance on manual data entry. Exostar's product and service offerings, backed
by strong support among the founding partners, have enabled us to become the
clear leader among aerospace and defence exchanges.'

For further information, please contact:

Bill O'Sullivan, Corporate Communications

Tel: [phone]

Email: [e-mail]