Investment in Facilities - Singapore

28 July 2009

                  ROLLS-ROYCE INCREASES SINGAPORE INVESTMENT                   
                          TO SUPPORT CONTINUED GROWTH                          

Rolls-Royce, the global power systems company, today announced plans to build a
new wide chord fan blade (WCFB) factory in Singapore. The factory will be
located at the Group's Seletar Campus alongside the previously announced
`Facility of the Future', which will test and assemble Trent aero engines.

Total investment in the Rolls-Royce Seletar Campus, including investment in the
WCFB factory, will exceed S$700million (around £300 million). It will create
approximately 500 new jobs when fully operational, bringing the number of
people employed by the Group in Singapore to around 2,000. Construction of the
Facility of the Future and all other elements of the campus, including a
regional training centre, will begin in the first quarter of 2010.

The new factory will be the first outside the UK to manufacture Rolls-Royce
hollow titanium WCFBs, a technology which has played a key role in the success
of the Trent engine family. It will provide additional capacity to the Group's
Barnoldswick factory in the UK, which Rolls-Royce separately announced today
will be receiving further investment.

The Group's growing global order book totalled £55.5 billion at the end of
2008, of which 44 per cent was generated by customers in the Asia Pacific
region. The Group's success in global markets generates the need for additional
capacity to support long-term growth and an expanding customer base.

The decision to locate the new facility in Singapore has been determined by
four strategic considerations: the benefits of locating major facilities close
to key customers; the business continuity benefits that will arise from
locating critical component manufacturing in two locations; the highly
competitive skills and productivity levels in Singapore, exemplified by the
Group's joint venture partnerships with Singapore Airlines Engineering Company;
and the support provided by the Singapore Economic Development Board (EDB) and
Jurong Town Corporation (JTC).

Sir John Rose, Rolls-Royce Chief Executive, commented: "Singapore has become a
vitally important centre for the Group's operations and this latest investment
in wide chord fan blade capability reflects our continuing confidence in
Singapore as a place to locate high value-added manufacturing. I am
particularly pleased that we are receiving the support of the Singapore EDB
with whom we already have a very strong relationship."

Mr Leo Yip, Chairman EDB, commented: "We are delighted that Rolls-Royce has
chosen Singapore for the manufacture of Wide Chord Fan Blades. This, together
with Rolls-Royce's Trent aero engine assembly and test facility at Seletar
Aerospace Park, is a strong vote of confidence in Singapore's capabilities to
be a home for high-value manufacturing and development activities. The
Rolls-Royce campus taking shape at Seletar reinforces our position as a leading
global aerospace hub, and reflects the very strong partnership between
Rolls-Royce and Singapore."

NOTE TO EDITORS

 1. Rolls-Royce is a global business, providing and supplying integrated power
    systems for use on land, at sea and in the air. The Group has established a
    strong position in civil aerospace, defence aerospace, marine and energy
    markets.
   
 2. Rolls-Royce employs around 38,000 skilled people in offices, manufacturing
    and service facilities in 50 countries. The Group has a strong commitment
    to apprentice and graduate recruitment and to further developing employee
    skills.
   
 3. Businesses are headquartered in the UK, US and Singapore. This global
    presence allows the Group to deliver benefits to its partners, in addition
    to being able to access long-term international growth opportunities with
    its technology, presence, partnerships and people.
   
 4. Singapore is a key business hub for the Group. It is home to the global
    headquarters of the Group's Marine business and the regional headquarters
    of its Asian Energy business. The Group's Advanced Technology Centre and
    Procurement office is also located in Singapore and handles the management
    of suppliers in South Korea, Taiwan, Malaysia, India and South East Asia.
   
 5. Rolls-Royce is developing its Facility of the Future, a Trent aero engine
    testing and assembly facility, at its new Seletar Campus in the Seletar
    Aerospace Park. It will be the most modern Rolls-Royce production engine
    assembly and test facility for large commercial aero engines, and the
    Group's first in Asia.
   
 6. Rolls-Royce has established a number of highly successful joint venture
    partnerships in Singapore, primarily with Singapore Airlines Engineering
    Company Limited (SIAEC). These include Singapore Aero Engine Services
    Limited (SAESL) and International Engine Components Overhaul (IECO), both
    of which provide services to major regional and global carriers.
   
 7. The Singapore Economic Development Board is the lead government agency
    responsible for planning and executing strategies to enhance Singapore's
    position as a global business centre and grow the Singapore economy. The
    EDB's support for the Rolls-Royce Seletar Campus includes development
    grants, training support and the coordination of Singapore government
    agencies that enabled efficient and focussed discussions through the
    decision process.
   
 8. Rolls-Royce has unique capability in the production of hollow WCFBs, which
    are critical components used in fans for civil and military engines and
    central to the performance of the engine.
   
 9. The Group's annual underlying revenues were £9.1 billion in 2008, 52 per
    cent of which came from services revenues. The firm and announced order
    book at the end of 2008 stood at £55.5 billion, providing visibility of
    future levels of activity.
   
10. The Group has invested £1.4 billion in capital projects over the last five
    years and £3.7 billion in research and development (R&D). In 2008,
    Rolls-Royce and its partners invested £885 million in R&D, two thirds of
    which had the objective of further improving the environmental aspects of
    its products, in particular the reduction of emissions.
   
11. Research and development is carried out in facilities in the UK, Canada,
    Germany, Singapore, the US and Scandinavia and the Group has particularly
    strong relationships with the 27 Rolls-Royce University Technology Centres
    worldwide.
   
For further information

Investor relations:
Mark Alflatt
Director of Financial Communication
Rolls-Royce plc
Tel: [phone]
[e-mail]

Media relations:
Nicky Louth-Davies
Director of Corporate Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]