Re Contract

31 July 2009

              TYPHOON TRANCHE 3 ORDER WORTH OVER £300 MILLION TO               
                                  ROLLS-ROYCE                                  

Rolls-Royce, the global power systems company, has announced that its share of
the Eurofighter Typhoon Tranche 3 order is worth more than £300 million.

Rolls-Royce is shareholder in Eurojet, the European consortium responsible for
the EJ200 engine that powers the Eurofighter Typhoon twin-engine combat
aircraft, and has a 37% production share of the programme.

The Tranche 3 contract covers 241 engines for which Rolls-Royce will produce
the combustion system, high pressure turbine, intermediate casing and other
components. The company will also assemble, test and deliver engines for the 
UK Royal Air Force (RAF). Work on engines will start in 2010.

The EJ200 programme sustains over 3,000 high-value jobs throughout Rolls-Royce 
and its supply chain, with activity centred at the Rolls-Royce site
in Bristol, where engines for the RAF are assembled and tested.

Martin Fausset, Managing Director of Rolls-Royce Defence Aerospace, said:

"The EJ200 is setting new standards for performance and reliability with the
RAF and other Typhoon operators and bringing huge improvements in operational
capability. This contract enables Rolls-Royce to maintain its commitment to
supply our armed forces with the best power systems technology available.

"This will help to sustain highly skilled jobs in Rolls-Royce and our supply
chain. Equally importantly, it will help to preserve the development of crucial
military engine technology for the UK."

The outstanding reliability of the EJ200 was confirmed in April 2009 with an
engine reaching the significant milestone of 1,000 flying hours with the RAF
with no requirement for unscheduled maintenance. The RAF fleet of EJ200 engines
is supported by Rolls-Royce under an innovative, availability-based contract.

NOTES TO EDITORS                           

 1. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy. In each of
    these sectors, Rolls-Royce offers value-added long-term service agreements
    for customers and operators.
   
 2. Annual sales were £9.1 billion in 2008, of which 52 per cent came from
    services revenues. The firm and announced order book at the end of 2008
    stood at £55.5 billion, providing visibility of future levels of activity.
   
 3. In 2008, Rolls-Royce and its partners invested £885 million on research and
    development, two thirds of which had the objective of further improving the
    environmental aspects of its products, in particular the reduction of
    emissions.
   
 4. Rolls-Royce is the world's number two defence aero engine company with 160
    customers in 103 countries. The company offers engines in all key defence
    market sectors - combat, transport, helicopters, trainers, patrol, maritime
    and reconnaissance - and is well positioned on a number of new programmes
    that will deliver products over the next decade and beyond.
   
 5. As partner in Eurojet, 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.
   
 6. The EJ200-powered Eurofighter Typhoon began operations with the air forces
    of Germany, Italy, Spain and the United Kingdom in 2003. Export orders have
    been secured with Austria and Saudi Arabia. Over 550 EJ200 engines have
    been delivered and the engine fleet has accumulated over 120,000 engine
    flying hours to date.
   
 7. Major components for the engine are produced at a number of Rolls-Royce
    sites:
    Ansty, Bristol & Sunderland - High Pressure Turbine components
    Annesley - compressor blisks
    Hucknall - combustion components
    Derby - intermediate casing
    Bristol - assembly and test of all RAF engines

 8. Rolls-Royce plays a key part in supporting EJ200 engines in service,
    providing a guaranteed level of installed engine availability to support
    the RAF's flying programme.
   
For further information please contact:

Investor relations:
Mark Alflatt
Director of Financial Communication
Rolls-Royce plc
Tel: [phone]
[e-mail]

Media relations:
Nicky Louth-Davies
Director of Corporate Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]

Website:
www.rolls-royce.com