Re Contract

11 April 2003

    ROLLS-ROYCE AWARDED TWO US MILITARY ENGINE CONTRACTS WORTH $350 MILLION    

Rolls-Royce announced today it had been awarded two defence contracts in the
United States worth a total of $350 million.

The first is to supply 240 AE 2100 engines for 60 C-130J transport planes for
the United States Air Force and the United States Marine Corps, the second is
for 22 AE 1107C-Liberty engines and services for the Bell Boeing V-22 Osprey
tilt rotor.

The AE 2100 engines are for 40 CC-130Js, the stretched fuselage version of the
aircraft for the U.S. Air Force, and 20 KC-130J air refuelling tankers for the
US Marine Corps. They will be delivered under contract through Lockheed Martin.
Starting in 2003, the six-year agreement covers engines, spares and other
provisioning and is valued in excess of $300 million.

Customers around the world have now ordered 178 C-130Js. Ninety-four have been
delivered to date with 32 going to the U.S. Air Force, nine to the U.S. Marine
Corps, 25 to the Royal Air Force, 15 to the Italian Air Force, 12 to the Royal
Australian Air Force and one to the U.S. Coast Guard. Deliveries to the Royal
Danish Air Force, four in total, will begin in 2004.

The AE 2100 is a turboprop derivative of the AE 1107 turboshaft engine, which
powers the Bell Boeing V-22 Osprey tiltrotor aircraft. Rolls-Royce has been
awarded two contract modifications worth over $50 million to exercise an option
for the procurement of 22 engines for the V-22 aircraft and for engineering,
manufacturing and development work. The engine for the V-22 is designated the
AE 1107C-Liberty.

The V-22 is the world's first production tiltrotor. It is a multi-mission,
multi-service, twin-turbine, vertical-lift, transport aircraft designed for use
by the U.S. Marine Corps, U.S. Special Operations Command, U.S. Air Force and
the U.S. Navy. It has twice the speed and range of a helicopter and can carry
more than 20,000 lb of cargo or a platoon of Marines.

In November 2002, Rolls-Royce celebrated the production and delivery of its
100th Liberty engine in support of the V-22 programme. Twenty-five Liberty
engines are scheduled for delivery in 2003.

Full versions of these announcements can be found on the Rolls-Royce website: 
www.rolls-royce.com

For further information please contact:

Justine Steele

Head of Communications - Defence

Rolls-Royce plc

Tel [phone]

Fax: [phone]

Email: [e-mail]