Subsid's Contract

Rolls-Royce PLC
30 August 2000


ROLLS-ROYCE SUBSIDIARY WINS £250 MILLION MoD CONTRACT

Rolls-Royce subsidiary Vickers Defence Systems has been selected as the
preferred supplier of new engineer tanks for the British Army. Under a SMART
procurement initiative with the Ministry of Defence, Vickers will supply 66
Challenger-based vehicles in a programme worth more than £250 million. 

The vehicles will all be manufactured at the company's facility in Newcastle
upon Tyne and will enter service in 2005.

The Engineer Tank System is to replace Chieftan-based Armoured Bridgelayers
and Royal Engineers Vehicles currently in service. There are two variants:
Titan, a bridge-laying vehicle and Trojan, an obstacle/mine clearance vehicle.

Both vehicles will be heavily-armoured and capable of keeping up with a modern
armoured battlegroup. They will utilise the same chassis as the British Army's
Challenger 2 main battle tank, thus providing the most cost effective logistic
support and proven levels of reliability.

Note to editors

Rolls-Royce plc is a global company providing power on land, sea and air. The
company has established leading positions in civil aerospace, defence, marine
and energy markets. Its core gas turbine technology has created one of the
broadest product ranges of aero engines in the world, with 55,000 engines in
service in over 150 countries. Customers include more than 500 airlines, 2,400
corporate and utility operators and 160 armed forces, using both fixed and
rotary wing aircraft. 

Rolls-Royce is the global leader in marine power systems with a broad product
range and full systems integration capability. Over 2,000 marine customers and
more than 30 navies use Rolls-Royce propulsion. The company is investing in
new products and capabilities for energy markets which include the oil and gas
industry and power generation. It also develops its own power projects through
Rolls-Royce Power Ventures Ltd.

Rolls-Royce pioneered gas turbine technology for aerospace, power generation
and marine propulsion and is involved in major future programmes in these
fields. These include the Trent aero and industrial engines, the Eurofighter
Typhoon and Joint Strike Fighter combat engines, the WR21 marine engine and
leading edge water jet propulsion systems.

  
For further information, please contact:

Martin Nield
Head of Communications, Defence and Energy
Tel: [phone]
e-mail: [e-mail]