Re Contract

February 2, 2007

              ROLLS-ROYCE AWARDED $235M USAF SERVICES AGREEMENTS               

Rolls-Royce, the world-leading provider of power systems and services, has
signed two contracts with the US Air Force for aftermarket services and spares
for C-130J military transport aircraft. The two contracts have a total value of
up to $235 million over five years.

Under the services contracts, Rolls-Royce will provide comprehensive propulsion
system services for its AE 2100D3 engines, Dowty R-391 propellers and other
propulsion system items on C-130J aircraft. The aircraft are flown by the US
Air Force, US Air Force Training Command, Air National Guard, US Air Force
Reserve and US Air Force Special Operations Command.

The agreement covers the entire propulsion system on the C-130J aircraft,
including support for all supply and off-wing maintenance on the engines and
propellers, and providing depot maintenance on the nacelles. Rolls-Royce will
also supply 17 AE 2100D3 engines and additional spare parts required to ensure
full availability of the propulsion system.

Rolls-Royce will provide field representatives on-site at operational bases and
propulsion system programme management and technical support at Robins Air
Force Base. Rolls-Royce will also continue operation of the US Air Force
Inventory Control Point established in Indianapolis, IN, USA in 2006. The
Inventory Control Point distributes propulsion system parts worldwide to
wherever the US Air Force is operating C-130J aircraft.

The C-130 has been the USAF's primary tactical transport and special mission
aircraft since 1956, powered by Rolls-Royce T56 engines. The latest version of
the aircraft, which is powered by AE 2100D3 engines, continues that legacy.

Dennis Jarvi, President of Rolls-Royce Defense North America, said: "The US Air
Force is a major customer for Rolls-Royce and we are confident that these new
agreements will ensure propulsion system availability to meet the USAF mission.
We are proud of our long history with the USAF and these tailored service
agreements represent a partnership focused on performance."

NOTE TO EDITORS

 1. The AE 2100D3 is a lightweight, modular turboprop engine with 4,600
    shaft-horsepower and has accumulated more than one million flight hours.
    The powerplant is part of the "common core" AE engine line produced by
    Rolls-Royce. The reliable and proven AE engine line, which has topped 25
    million flight hours, is manufactured in Indianapolis, IN.
   
 2. The contract is administered by the 330th Tactical Air Support Group
    Headquarters at Warner Robins Air Logistics Centre, located at Robins Air
    Force Base, Ga. The Rolls-Royce defence services business in the U.S. is
    centred in Indianapolis, IN.
   
 3. Rolls-Royce has services agreements in place with all branches of the US
    Military, including the Air Force, Marines, Army and Navy, plus the Coast
    Guard.
   
 4. Rolls-Royce operates in four global markets - civil aerospace, defence
    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.
   
 5. Rolls-Royce has a broad customer base comprising 600 airlines, 4,000
    corporate and utility aircraft and helicopter operators, 160 armed forces
    and more than 2,000 marine customers, including 70 navies. The company has
    energy customers in 120 countries. Rolls-Royce is a technology leader,
    employing around 37,000 people in offices, manufacturing and service
    facilities in 50 countries.
   
For further information, please contact:

George McLaren
Senior Communications Manager
Rolls-Royce Corporation
Indianapolis, IN
[phone]; mobile, [phone]
Email: [e-mail]
Website: www.rolls-royce.com