Subsid's Change to Board of Directors

Rolls-Royce PLC
20 July 2000


ROLLS-ROYCE SUBSIDIARY APPOINTED PREFERRED BIDDER FOR £100 MILLION MOD
CONTRACT

Vickers Specialist Engines, part of Rolls-Royce plc, has been appointed
preferred bidder for the UK Ministry of Defence's (MoD) Field Electrical Power
Supplies (FEPS) programme, estimated to have a total value of more than £100
million over a 15-20 year period. 

This is a private finance initiative (PFI) project that involves the design,
development, supply, maintenance and finance of a fleet of over 1,300
trailer-mounted, field mobile generator sets for the British Army.

As preferred bidder, Vickers Specialist Engines will work exclusively with its
partners and the MoD towards the signing of a contract early 2001.  Les Lloyd,
Battlefield Infrastructure Team Leader within the MoD Defence Procurement
Agency said: 'I am enthusiastic about pursuing this exciting initiative to a
successful conclusion and providing the Services with a first class FEPS
capability'. 

FEPS is a range of highly mobile, diesel-powered generators that can be used
for many general applications.  The FEPS unit incorporates 'stealth type'
technology to achieve low acoustic, thermal and radar signatures, reducing its
chances of being detected by an enemy. FEPS technology demonstration units
have been built by Vickers Specialist Engines and have been successfully
tested for radar signature and operation at extreme temperatures.
2.

The specialist knowledge of Vickers Specialist Engines and its partners has
ensured that the most cost-effective and practical solution was offered to the
MoD. To support this, commercial off-the-shelf components have been used
wherever possible to provide quality, reliability and ease of maintenance with
low through-life costs.

Jim Vickerman, Managing Director of Vickers Specialist Engines said: 'FEPS is
an excellent product. The MoD contract will provide a solid platform from
which to launch our FEPS technology overseas'.

Notes to editors

As part of the Rolls-Royce group, Vickers Specialist Engines operates as a
business unit within Vickers Defence Systems.  The business provides creative,
whole-life solutions for demanding, defence-related power applications. 
Vickers Specialist Engines is an existing contractor to the Ministry of
Defence, both Army and Navy, for the design, manufacture and support of diesel
engines and generator sets.

Vickers Specialist Engines has teamed with the following partners on the FEPS
project: Aggreko, a world-wide leader in providing rental of temporary power
packages; Deutz, an internationally renowned engine manufacturer with over 130
years' experience in the supply and world-wide support of diesel and gasoline
engines; Ifor Williams Trailers, the UK's leading manufacturer of military and
civilian trailers, and advisers Societe Generale, one of the world's largest
banks with unparalleled experience in advising both the public and private
sectors on PFI/public-private partnership (PPP) projects and Dibb Lupton
Alsop, one of the leading UK law firms.


The Private Finance Initiative (PFI) provides a mechanism through which the
public sector can secure improved value for money in partnership with the
private sector.  PFI demands a transformation of roles and responsibilities in
public and private sectors. Government bodies move away from being owners and
operators of assets into intelligent purchasers of long term services.  

For further information, please contact:

Karen Fenwick, Communications Manager
Vickers Defence Systems
Tel: [phone]       Fax: [phone]