Re Contract

3 September 2003

         ROLLS-ROYCE WELCOMES SELECTION OF ADOUR-POWERED HAWK BY INDIA         

Rolls-Royce welcomes the decision by the Indian Government to select the
Adour-powered Hawk for its Advanced jet Trainer requirement. This is a
significant win following on from the UK Government's decision to select the
Adour-powered Hawk. We look forward to finalising the contract with BAE
SYSTEMS.

In addition, it was confirmed that the Indian Government has selected five
Embraer 145 aircraft, each powered by two Rolls-Royce AE3007 engines, as VVIP
transport aircraft to be operated by the Indian Air Force.

Rolls-Royce has offered the Mk871 variant of the Adour engine, which shares a
high degree of commonality with the reheated Adour 811 that has powered the
Indian Air Force Jaguar fleet since 1979. The engines for the Indian order will
be assembled at the Rolls-Royce facility in Bristol, UK, and at Hindustan
Aeronautics Limited in Bangalore, India.

Over 2,800 Adours have been delivered to date, amassing well over six million
flying hours. Adours are in service with 19 different armed forces, including
the UK, Saudi Arabia, Malaysia, Finland, the United States.

Rolls-Royce is an equal partner in the Rolls-Royce Turbomeca joint venture
company that makes the Adour engine.

For more information, please contact:

Justine Steele Rolls-Royce

Phone: [phone] email: [e-mail]

Nick Britton Rolls-Royce

Phone: [phone] email: [e-mail]