AGM AND INTERIM MANAGEMENT STATEMENT

7 May 2008

                     AGM AND INTERIM MANAGEMENT STATEMENT                      

Rolls-Royce Group plc is today holding its 2008 Annual General Meeting at the
ExCel Centre in London.

Sir John Rose, Chief Executive, made a presentation to shareholders and
provided the following Interim Management Statement:

"I can confirm that Rolls-Royce continues to make strong progress. The Group's
increasingly global nature, our access to growing international markets and the
scale of our order book all support your Board's confidence that Rolls-Royce
will continue to deliver growth across all four of our business sectors.

"2008 has started well. Order intake in the first quarter was worth almost $15
billion. Trading performance in this period is in line with the Board's
expectations. The balance sheet and the Group's financial position remain
strong.

"The high levels of activity in the oil and gas industry are benefiting our
marine and energy businesses and current activity in the defence business
remains strong. Our civil aerospace business continues to enjoy significant
order intake particularly in Asia and the Middle East. However, the credit
shortage and increased fuel costs are inevitably putting pressure on the
airline industry.

"Looking to the future, the breadth and diversity of the Group's products and
services, its lack of dependence on any one programme or geographical region
and the progress being made with managing costs will help the Group to respond
effectively to the unpredictable economic environment.

"Current trading is consistent with our expectations that we will grow
underlying revenue and profit and generate a positive cash flow in 2008."

The Group will report its interim results for the six month period ending 30
June 2008 on 24 July 2008.

For further information please contact:

Nicky Louth-Davies 
Director of Corporate Communications 
Tel: [phone] 
[e-mail] 

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