Re Contract

6 December 2007

      SAUDI TYPHOON PROGRAMME WORTH UP TO £1 BILLION TO ROLLS-ROYCE

Rolls-Royce announced today that the engine element of the Salam Project,
covering the purchase and support of Eurofighter Typhoon aircraft by the
Kingdom of Saudi Arabia, will be worth up to £1 billion for the EJ200 engines
and support.

The Salam government-to-government contract covers the sale and support of a
fleet of 72 Typhoon aircraft that will be operated by the Royal Saudi Air
Force.

Martin Fausset, Rolls-Royce Managing Director - Defence Aerospace, said:
"As the prime contractor for the EJ200 engine on Salam for the EUROJET
consortium, this contract will be of significant benefit for Rolls-Royce and
our partners - MTU Aero Engines, ITP and Avio. It continues our long-standing
relationship with the Royal Saudi Air Force and will contribute to the growth
of our defence business."

Rolls-Royce has a 36 per cent share of the production work for the EJ200 engine
that powers the Eurofighter Typhoon twin-engine combat aircraft. The European
consortium EUROJET has overall responsibility for the EJ200.

The EJ200 programme sustains approximately 4,000 high-value jobs throughout
Rolls-Royce and its supply chain, with activity centred at the Rolls-Royce
facility in Bristol, from where the programme is managed and engines for the
RAF's Eurofighters are assembled and tested.

Major components for the engine are also produced at Rolls-Royce sites at
Ansty, Derby, Hucknall and Sunderland.


Note to editors

 1. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, operates in four global markets - civil
    aerospace, defence aerospace, marine and energy. The Group has a broad
    customer base comprising 600 airlines, 4,000 corporate and utility aircraft
    operators, 160 armed forces, more than 2,000 marine customers and energy
    customers in 120 countries.
   
 2. Rolls-Royce is engaged in the design, development, manufacturing and
    in-service support work for the EJ200, together with MTU Aero Engines of
    Germany, Italy's Avio and ITP of Spain. Rolls-Royce is responsible for the
    combustion system, high-pressure (HP) turbine and intermediate casing and
    also contributes to the low-pressure (LP) and HP compressors, LP turbine,
    interstage support, and the reheat system.
   
 3. The EJ200-powered Eurofighter Typhoon began operation with the air forces
    of Germany, Italy, Spain and the United Kingdom in 2003. Export orders have
    been secured with Austria. The total EJ200 fleet has accumulated more than
    50,000 engine flying hours and to date, approximately 125 EJ200 engines
    have been delivered for the UK RAF.
   
 4. Rolls-Royce has a growing presence in the Middle East, where it is playing
    an important role in the development of the region across all the Group's
    sectors - civil aerospace, defence aerospace, marine and energy.
   
 5. The Trent engine family has been ordered by many Middle East airlines. The
    Group has more than 1,000 military engines in operation in the region and
    400 industrial gas turbines, including the use of Trent gas turbines for
    the undersea pipeline system from Qatar to the UAE under the Dolphin Gas
    Project. Marine products are in service throughout the commercial and naval
    sectors.
   
For further information:

More information about Rolls-Royce in the Middle East can be found at
http://www.rolls-royce.com/middle_east/default.htm

Mark Alflatt
Director - Financial Communications
Tel: [phone]