Re Contract

January 24 2006

              ROLLS-ROYCE WINS $65 MILLION V-22 ENGINE CONTRACTS               

Rolls-Royce has been awarded two contracts from the U.S. Naval Air Systems
Command for the purchase and continued support of AE 1107C Liberty engines
powering V-22 Osprey tiltrotor aircraft.

Under the purchase contract, Rolls-Royce will produce 28 engines for the MV-22
and CV-22 versions of the aircraft in 2006-07. The engines are manufactured in
Indianapolis, IN.

The services contract includes a new option year for a Power By The Hour®
contract for maintenance support this year for the gas-turbine engines. Most of
the work will be performed at Marine Corps Air Station New River in North
Carolina, with additional work at Indianapolis and Amarillo, Texas.

The V-22 tiltrotor aircraft, known as the Osprey, takes off like a helicopter
and flies like an airplane. Powered by twin Rolls-Royce AE 1107C Liberty
engines, V-22s fly at twice the speed, with three times the payload and up to
five times the range, of conventional helicopters. The U.S. government approved
full rate production for the aircraft in September 2005.

Dennis Jarvi, President Defense North America for Rolls-Royce, said: "Our
defense customers know Rolls-Royce as a reliable provider of quality engines
and services. We stand behind our engines through creative and individualized
performance-based logistics concepts designed to meet our customers' needs."

NOTE TO EDITORS

 1. The AE 1107C engine is part of the "common core" AE engine line produced by
    Rolls-Royce, and provides more than 6,000 shaft horsepower. The reliable and
    proven AE engine line has accumulated more than 21 million flight hours.

 2. The contracts are administered by Naval Air Systems Command, Patuxent
    River, MD.
   
 3. Rolls-Royce operates in four global markets - civil aerospace, defense
    aerospace, marine and energy. It is investing in technologies and
    capabilities that can be exploited in each of these sectors to create a
    competitive range of products.
   
 4. Rolls-Royce has a broad customer base comprising more than 500 airlines,
    4,000 corporate and utility aircraft and helicopter operators, 160 armed
    forces and more than 2,000 marine customers, including 50 navies. The
    company has energy customers in nearly 120 countries. Rolls-Royce employs
    around 35,000 people, including 8,000 in North America.
   
To download video of V-22 aircraft in operation by the U.S. Marine Corps, go
to: www.thenewsmarket.com/rolls-royce

For images please go to: http://www.rolls-royce.com/media/gallery/default.jsp

For further information please contact:

Justine Steele
Head of Communications - Defence Aerospace
Rolls-Royce Corporation
Bristol
Mobile: [phone] email: [e-mail]
Website: www.rolls-royce.com