Contract Win

October 19, 2009

ROLLS-ROYCE NORTH AMERICAN TECHNOLOGIES, INC. SELECTED BY U.S. AIR FORCE TO
COMPLETE ADVENT RESEARCH DEMONSTRATOR PROGRAM

Rolls-Royce North American Technologies, Inc. has achieved a major milestone in
the Adaptive Versatile Engine Technology (ADVENT) demonstrator program, and was
selected by the U.S. Air Force to proceed with Phase II development. Next steps
for this key USAF technology program will include the integration of a variety
of advanced technologies, component testing and development of a technology
demonstrator core and engine.

This authorization to proceed follows successful completion earlier this year
of a series of tests and analysis on a technology demonstrator core and
adaptive engine. Designed to provide significant improvement in average fuel
consumption, this core and engine will be available for future U.S. military
aerospace platforms, including medium or large unmanned air systems.

Phil Burkholder, Chief Operating Officer, Rolls-Royce North American
Technologies, Inc., added: "We are delighted to continue to support the shared
vision of creating an ADVENT family of next generation engines that deliver the
range and persistence required for 21stcentury aircraft, including unmanned air
systems. The relationship with the AFRL is one of our most long standing, and
we look forward to continuing our partnership on the ADVENT program that will
deliver a step-change in aerospace propulsion technology."

The ADVENT technology demonstrator program, undertaken by Rolls-Royce North
American Technologies, Inc. (LibertyWorks), is funded by the U.S. Air Force
Research Laboratory (AFRL). ADVENT is part of the Versatile Affordable Advanced
Turbine Engines (VAATE) Program, an initiative sponsored by industry and
Government partners to advance state of the art turbine engine technology for
military and commercial aviation.


NOTE TO EDITORS

 1. LibertyWorks®, known officially as Rolls-Royce North American Technologies
    Inc., has a long history of service to the U.S. military. Based in
    Indianapolis, Indiana, U.S., LibertyWorks - previously known as Allison
    Advanced Development Co. (AADC) - has contributed technology to the F-35
    Lightning II LiftFan and F136 engine; and the IHPTET (Integrated High
    Performance Turbine Engine Technology) program.
   
 2. In August 2007, Rolls-Royce North American Technologies, Inc. was awarded a
    $296 million contract by the AFRL for work to develop ADVENT technologies
    that focus on an adaptive engine architecture to provide a 25 percent
    improvement in average fuel consumption and reduced temperature cooling air
    for thermal management. The ADVENT engine demonstrator testing is scheduled
    for 2013.
   
 3. In September 2007, Rolls-Royce North American Technologies, Inc. was
    awarded a $19.6 million contract by the U.S. Air Force Research Laboratory
    for work that will be carried out on HEETE. The HEETE technology program is
    a key element within the U.S. Air Force's Versatile Affordable Advanced
    Turbine Engines (VAATE) program that aims to provide game-changing
    propulsion system capabilities with superior fuel efficiency.
   
 4. 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, defense aerospace, marine and energy.
   
 5. Rolls-Royce has a broad customer base comprising 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 120 countries.
   
 6. In 2008, Rolls-Royce and its partners invested nearly $1.4 billion on
    research and development, two thirds of which had the objective of further
    improving the environmental aspects of its products. The primary technology
    investment area is aimed at reducing noise and emissions.
   
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