AGM Statement

5 May 2004

                      Rolls-Royce Group plc AGM statement                      

The presentation made today by Sir John Rose, Chief Executive, at the
Rolls-Royce Group plc Annual General Meeting at the Scottish Exhibition and
Conference Centre in Glasgow contained the following statement regarding the
Company's prospects:

"We have gained strong positions on a new generation of programmes, which will
shape the power systems market for the next generation. The most recent of
these was the selection of the Trent 1000 engine to power the Boeing 7E7
Dreamliner. This is a powerful endorsement of the capability we have developed
to provide market access, products and services. It will enable us to continue
to develop and, as an integrated business, benefits all our business sectors.

"In the civil sector, we have now been selected to power both of the world's
new airliner programmes.

"In defence, we participate in the world's major new European and American
combat and transport aircraft programmes.

"In marine, we power major new naval programmes and have new products for the
commercial sector.

"In energy, the industrial Trent will be competitive in both the oil and gas
and power generation markets. Our fuel cell technology, currently in
development, potentially enables us to participate in new markets for
distributed power.

"Our confidence in the business model is supported by the visibility provided
by our large order book. Aftermarket revenues, including long-term service
contracts worth £5 billion, represent 35 per cent of the current order book.

"I am pleased to say that current trading is in line with the guidance we
provided with the announcement of our 2003 results."

The full presentation and supporting text is available on the Company's
website, at www.rolls-royce.com.

At the Annual General Meeting, Lord Moore, Acting Chairman, made the following
statement in respect of Euan Baird, Chairman of Rolls-Royce Group plc:

"As many of you will know, Euan Baird, our Chairman, suffered a stroke last
December, since when I have served as Acting Chairman.

"Euan and your Board intend to take a decision by the middle of the year about
his return to full duties, in the light of ongoing medical advice and Euan's
continued improvement."

For further information please contact:

Peter Barnes-Wallis
Director of Financial Communications
Rolls-Royce Group plc
Tel: [phone]
Email: [e-mail]
website: www.rolls-royce.com