Holding(s) in Company

TR-1: notification of major interests in shares

1. Identity of the issuer or the underlying          Rolls-Royce Group Plc     
issuer of existing shares to which voting                                      
rights are attached:                                                           
                                                                               
2. Reason for the notification (please tick the appropriate box or             
boxes)                                                                         
                                                                               
An acquisition or disposal of voting rights                               X    
                                                                               
An acquisition or disposal of financial instruments which may result           
in the acquisition of shares already issued to which voting rights are         
attached                                                                       
                                                                               
An event changing the breakdown of voting rights                               
                                                                               
Other (please specify):___________________________________________             
                                                                               
3. Full name of person(s) subject to the         Lehman Brothers International 
notification obligation:                                   (Europe)            
                                                                               
4. Full name of shareholder(s) (if different                  N/a              
from 3.):                                                                      
                                                                               
5. Date of the transaction (and date on which             14/03/2007           
the threshold is crossed or reached if                                         
different):                                                                    
                                                                               
6. Date on which issuer notified:                         16/03/2007           
                                                                               
7. Threshold(s) that is/are crossed or reached:               4 %              
                                                                               
8. Notified details:                                         N/a               

A: Voting rights attached to shares                                          
                                                                             
Class/type   Situation previous  Resulting situation after the triggering    
of shares    to the Triggering   transaction                                 
             transaction                                                     
if possible                                                                  
using the                                                                    
ISIN CODE                                                                    
                                                                             

Number of    Number of   Number of   Number of voting      % of voting          
Shares       Voting      shares      rights ix             rights               
             Rights viii                                                        
                         Direct      Direct x   Indirect   Direct Indirect      
                                                xi                              
                                                                                
GB0032836487 120,233,668 120,233,668 73,827,606 73,827,606 N/a    4.09%    N/a  

B: Financial Instruments                                                       
                                                                               
Resulting situation after the triggering transaction xii                       
                                                                               
Type of         Expiration  Exercise/          Number of voting    % of voting 
financial       date xiii   Conversion Period/ rights that may be  rights      
instrument                  Date xiv           acquired if the                 
                                               instrument is                   
                                               exercised/                      
                                               converted.                      
                                                                               
      N/a                                                                      

Total (A+B)                                                                    
                                                                               
Number of voting rights                % of voting rights                      
                                                                               
73,827,606                             4.09%                                   

9. Chain of controlled undertakings through which the voting rights and/or the 
financial instruments are effectively held, if applicable xv:                  
                                                                               
N/a                                                                            

Proxy Voting:                                                                  
                                                                               
10. Name of the proxy holder:                                  N/A             
                                                                               
11. Number of voting rights proxy holder will                  N/A             
cease to hold:                                                                 
                                                                               
12. Date on which proxy holder will cease to hold              N/A             
voting rights:                                                                 

13. Additional information:                                                    
                                                                               
14. Contact name:                 Tara O'Hagan                                 
                                                                               
15. Contact telephone number:     020 7102 1832                                

Annex Notification Of Major Interests In Shares xvi

A: Identity of the person or legal entity subject to the notification          
obligation                                                                     
                                                                               
Full name (including legal form for legal   Lehman Brothers International      
entities)                                   (Europe)                           
                                                                               
Contact address (registered office for      25 Bank Street, London E14 5LE     
legal entities)                                                                
                                                                               
Phone number                                020 7102 1000                      
                                                                               
Other useful information (at least legal    [e-mail]    
representative for legal persons)                                              


B: Identity of the notifier, if applicable xvii                                
                                                                               
Full name                                                                      
                                                                               
Contact address                                                                
                                                                               
Phone number                                                                   
                                                                               
Other useful information (e.g. functional                                      
relationship with the person or legal                                          
entity subject to the notification                                             
obligation)                                                                    


C: Additional information                                                      
                                                                               
N/a