Re Contract

15 January 2010

               ROLLS-ROYCE EXTENDS SUPPORT FOR UK TYPHOON FLEET                

Rolls-Royce, the global power systems company, has signed an innovative service
contract worth £865 million with the UK Ministry of Defence (MOD) to support
the Royal Air Force's (RAF) fleet of Eurofighter Typhoon aircraft which are powered
by EJ200 engines, assembled by Rolls-Royce in Bristol.

Under the terms of the contract, which runs until 2019, Rolls-Royce will
provide the RAF with a guaranteed level of availability for its EJ200 engines.

Rolls-Royce has been contracted to support the RAF's EJ200 engine fleet since
November 2001 and has consistently met 100 per cent of the performance
requirements from the outset.

Martin Fausset, Managing Director of Rolls-Royce Defence Aerospace, said:
"This contract meets the challenge set by the MOD to industry of delivering
affordable and innovative support solutions for the Typhoon programme. We apply
a high level of technology and innovation into developing support solutions, as
we do to developing our engines, which gives the Armed Forces the twin benefits
of increased operational capability and better value for money."

Typhoon Team Leader Air Vice Marshal Chris Bushell said:
"Today's announcement of a 10-year engine availability service with Rolls-Royce
is good news for us all; the service will maximise aircraft availability by
using the most cost-effective solution. Typhoon has now been operational in the
air defence role for well over two years and a multi-role capability was
integrated and declared combat ready by the RAF in July 2008. The signature of
the Partnered Support Operational Phase 3 contract builds on this success and
will underpin Typhoon's growing capability and utilisation."

Rolls-Royce undertakes all aspects of EJ200 engine support, including the
provision of replacement engines to meet customer demands, and technical
support both on-base and from the Rolls-Royce Operations Centre in Bristol.

Rolls-Royce support operations are centred at the Typhoon Propulsion Support
Facility at RAF Coningsby, where the RAF's Typhoon squadrons are based. From
there, a team comprising both Rolls-Royce and RAF personnel manages the engine
support for aircraft operations in the field and also carries out some engine
repairs. This will be augmented in 2010 by a second Main Operating Base at RAF
Leuchars where Rolls-Royce will also have a support team.

The majority of engine repairs are undertaken at the Rolls-Royce facilities at
Ansty, near Coventry, and Bristol.

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

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.
   
 2. As a result of this strategy, Rolls-Royce today has a broad customer base
    comprising more than 600 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,000 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Rolls-Royce employs around 38,000 skilled people in offices, manufacturing
    and service facilities in 50 countries. The Group has a strong commitment
    to apprentice and graduate recruitment, and to further developing employee
    skills.
   
 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. Rolls-Royce is a pioneer in partnered support and availability contracting
    and services account for over half of the revenues of the defence aerospace
    business.
   
 6. The focal point for the rapidly expanding military engine support business
    is an Operations Centre, based in Bristol, which provides around-the-clock
    advice, guidance and information to Rolls-Royce programme managers, field
    representatives, deployed personnel and customers. In addition to the UK
    MOD support contracts, the centre is supporting an increasing number of
    international customers, including Adour support for Hawks based in
    Australia, the USA and Canada.
   
For further information please contact:

Mark Alflatt
Director of Financial Communications
Tel: [phone]
[e-mail]

Nick Britton
Communications Manager - Defence 
Tel: [phone]
[e-mail]

Web www.rolls-royce.com