Market Forecast

February 23, 2009

               ROLLS-ROYCE PREDICTS RESILIENT ROTORCRAFT MARKET                

Rolls-Royce, which offers one of the broadest power ranges for helicopter
turboshaft engines in the world, today forecast a market characterized by
near-term softness followed by a resumption of growth. Over the ten year period
total helicopter deliveries are predicted to be more than 15,000 units, a
slight increase on the company's market forecast in February 2008.

Ken Roberts, President of the Rolls-Royce Helicopter Engine business, said:
"The projection of deliveries in the short-term shows that the industry will
not escape the economic downturn, but will remain quite resilient overall. The
market will exhibit strong demand by 2013, indicative of its underlying
strength."

The Rolls-Royce market forecast projects deliveries of more than 15,000 turbine
helicopters, valued at around $130 billion for the airframes and around $12
billion for engines, during the ten year period ranging 2009-2018.

The civil unit market forecast has increased by five per cent compared to the
previous year's projection, primarily due to new entry-level turbine
helicopters. The market units now stand at around 9,000 civil helicopters to be
delivered during the ten year period, with an overall airframe value estimated
to be about $26 billion and engine value around $4 billion.

"With the oil and gas industry, police, air ambulance and defense ministries
all looking for new, purpose-built aircraft, the demand for and benefits of
helicopter usage are clear," said Roberts.

The Rolls-Royce market forecast also projects approximately 6,000 new military
helicopter deliveries during the ten year period, with an airframe value of
around $104 billion and installed engine value of around $8 billion.

NOTE TO EDITORS

 1. Providing power from 300 shp to 7300 shp, Rolls-Royce helicopter engines
    are on over 150 applications in more than 120 nations in a variety of
    military and civil roles that include the U.S. Army OH-58 Kiowa Warrior;
    AgustaWestland Super Lynx and T129 ATAK helicopter; Bell 206 and 407;
    Schweizer 333 and MQ-8B Fire Scout, and the Robinson R66.
   
 2. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established strong positions in its
    four global markets - civil aerospace, defense aerospace, marine and
    energy.
   
 3. The company has a broad customer base including more than 600 airlines,
    4,000 corporate and utility aircraft and helicopter operators, 160 armed
    forces, more than 2,000 marine customers, including 70 navies, and energy
    customers in nearly 120 countries. With facilities in 50 countries,
    Rolls-Royce employs 39,000 people worldwide and has businesses
    headquartered in the UK, US, Canada, Germany, Scandinavia and China. This
    global presence allows the Group to access long-term international growth
    opportunities with its technology, presence, partnerships and people.
   
 4. Rolls-Royce continues to invest in core technologies, products, people and
    capabilities with the objective of broadening and strengthening the product
    portfolio, improving efficiency and enhancing the environmental performance
    of its products.
   
 5. In 2008, Rolls-Royce invested over £800 million on research and
    development, two thirds of which had the objective of further improving the
    environmental aspects of its products. The primary technology investment
    area is aimed at reducing noise and emissions.
   
For further information, please contact:

Mark Alflatt
Director of Financial Communications
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[e-mail]

Nicky Louth-Davies
Director of Corporate Communications
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[e-mail]