Correction : Re Contract

This corrects the press release issued earlier. Please disregard previous
version.



                                                                               
                                                              September 5, 2003

         ROLLS-ROYCE AWARDED $51 MILLION POWER BY THE HOUR ® CONTRACT          

The US Department of Defense (DoD), Naval Air Systems Command (NAVAIR) at NATC
Patuxent River and Rolls-Royce have announced the award of a $51 million Power
By The Hour ® contract in support of the Rolls-Royce powered T-45 training
aircraft operated by the US Navy. The F405 (Adour) engine contract will be
effective for one year with four option years, which if exercised would extend
the total contract value, and was developed in line with commercial Power By
The Hour agreements.

Under the terms of the agreement, Rolls-Royce will provide all engine
maintenance, support, trouble-shooting, parts supply and logistics for over 175
aircraft, operating at two main bases - Kingsville, Texas and Meridian,
Mississippi.

Steven F. Dwyer, President-Defense North America said, "This contract
represents a significant milestone in our growing services program and our
military business in the US with the Department of Defense. By applying
commercial Power By The Hour ® experience in our US Defense markets, we will
improve overall availability and readiness. This is a win-win for both
Rolls-Royce and the DoD; our partnership with the Navy and the Department of
Defense will be strengthened by this alignment. "

Rolls-Royce is the F405-RR-401 (Adour) engine manufacturer and has been
involved with T-45 program support since inception through a variety of
contracts awarded by both the USN and by Boeing. Currently the T-45 is
scheduled to remain in service with the Navy until 2035.

Corporate note to editors:

Rolls-Royce plc operates in four global markets - civil aerospace, defense
aerospace, marine and energy. It is investing in technology and capability that
can be exploited in each of these sectors to create a competitive range of
products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years. As a result, engine
deliveries have grown and the company now has a total of 54,000 gas turbines in
service worldwide. The investments in product, capability and infrastructure to
gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 50 navies. The company has energy
customers in nearly 120 countries. Rolls-Royce employs around 36,000 people, of
which nearly 22,000 are in the UK. Forty per cent of its employees are based
outside the UK - including nearly 5,000 in the rest of Europe and 8,000 in
North America.

Most of the engines in service will have operational lives of 25 years or more,
generating an assured aftermarket demand for the provision of spare parts and
services. The company's strategy is to maximize aftermarket revenues, which
have increased by 60 per cent over the past five years due to the development
of a comprehensive services capability.

Annual sales total nearly £6 billion, of which over 40 per cent currently comes
from aftermarket services. The order book stands at more than £17 billion,
which, together with aftermarket demand, provides visibility as to future
activity levels.

For further information contact:

John Brown

Director of Corporate Communications

Rolls-Royce Corporation

Indianapolis IN 46206-0420

USA

Tel: [phone]

Email: [e-mail]

Website: www.rolls-royce.com

Maria Weber

Corporate Communications

Rolls-Royce Corporation

Indianapolis, IN 46206-0420

USA

Tel: [phone]

Email: [e-mail]

Website: www.Rolls-Royce.com