Impact of U.S. Events

Rolls-Royce PLC
19 September 2001


Rolls-Royce plc

Rolls-Royce continues to evaluate the potential impact of the tragic events of
11 September. While it is inevitable that there will be changes in the
priorities of the company's customers, it is nevertheless too early to
determine what effect these events will have.

John Rose, Chief Executive, said, ' We are working closely with our customers
as they reassess the outlook for their businesses. We will continue to
actively manage the business in response to the changing priorities of the
market.

'We will keep shareholders informed as the short term outlook for the industry
becomes clearer.'

The development of Rolls-Royce over recent years means that the company is
positioned to respond to these changes. The management of Rolls-Royce has
pursued a consistent strategy to develop a balanced business and, today, civil
aerospace represents 54 per cent of company sales. The balance of company
sales is in the defence, marine and energy sectors.

The installed base of civil engines has doubled over the last five years and
the fleet has an average age of approximately only eight years.

In August 2000 Rolls-Royce announced a rationalisation programme to simplify
the company's structure and reduce costs. The company has increased the
purchased proportion of its engines and attracted greater participation of
risk and revenue sharing partners. This provides enhanced operational
flexibility. Since 1995 the company has increased sales by 80 per cent with no
net increase in headcount.

Enquiries

Peter Barnes-Wallis                    Tim Blythe

Director Financial Communications     Director Corporate Communications

Tel: [phone]

www.rolls-royce.com