Investment in Facilities - UK

28 July 2009

                 ROLLS-ROYCE INVESTS IN RESEARCH AND FACTORIES                 
                           TO SUPPORT FUTURE GROWTH                            

Rolls-Royce, the global power systems company, today announced plans to invest
in four new factories and two advanced research programmes in the UK.

These investments will enable Rolls-Royce to respond to anticipated growth in
its aerospace and civil nuclear markets and will create or secure over 800 jobs
in innovative high-value manufacturing programmes, largely in Assisted Areas.

The research programmes will focus on critical technologies to reduce the 
CO2 emissions of future aircraft programmes and will accelerate the development 
of new manufacturing methods that create significant competitive advantage for 
the UK.

Rolls-Royce is also separately announcing today the development of a new wide
chord fan blade factory in Singapore.

Sir John Rose, Rolls-Royce Chief Executive, commented: "These are significant
investments in capability and research which reflect our commitment to continue
to invest in the future of our business, even at this stage in the economic
cycle. We are delighted that the British Government will be supporting these
projects."

New UK factories

Rolls-Royce will invest over £300 million in four factories in the UK, with 
£45 million of support to be provided by the UK Government. The factories 
comprise:

1. Casting facility for single crystal (SX) turbine blades

Turbine blades are important and highly complex aero engine components.
Rolls-Royce will establish a new casting facility, where it will develop new,
high-productivity manufacturing processes before incorporating them into
production. The factory will manufacture advanced turbine blade castings for
the Company's most modern, high-thrust engines.

2. Advanced disc manufacturing facility

Discs are critical rotating parts used in fans, compressors and turbines.
Rolls-Royce will establish a new disc machining factory that will deliver a
step-change improvement in the manufacture of fan and turbine discs for
commercial and military aero engines. A suite of manufacturing processes,
developed in the advanced manufacturing research centres, will be demonstrated
in the factory before being introduced into production.

3. Military wide chord fan blade (WCFB) facility

Rolls-Royce has unique capability in the production of hollow WCFBs, which are
central to the performance of both military and commercial aero engines.

The Group is positioned on the engine programme of the Lightning Joint Strike
Fighter (JSF) aircraft. Rolls-Royce is providing hollow blisked fans for the
LiftSystem® on the VSTOL (Vertical/Short Take-Off and Landing) version of the
aircraft and for the F136 alternative engine. It will extend its facility in
Barnoldswick, UK, where it currently manufactures large WCFBs for commercial
aircraft, to manufacture advanced military blades, investing in new capacity to
meet planned increases in engine production.

Additional capability for the manufacture of civil wide chord fan blades will
be located in a new factory in Singapore announced separately today, which will
complement the existing WCFB facility at Barnoldswick.

4. Civil nuclear facility

Rolls-Royce will build a new factory to manufacture, assemble and test
components for new civil nuclear power stations. These include pressure
vessels, heat exchangers and other large and complex reactor parts,
manufactured to exacting nuclear standards.

The facility will have strong links with the Nuclear Advanced Manufacturing
Research Centre, announced by the UK Government on 15 July 2009, in which
Rolls-Royce will be the leading industrial partner.

The Group is consulting globally with appropriate employee representatives on
the UK and Singapore investments.

New research and technology programmes in the UK

The company and its partners will also invest in new research programmes. These
comprise:

1. Research into low carbon aircraft engine technologies

Rolls-Royce and its partners are investing in a Rolls-Royce-led research
programme valued at around £90 million that is central to the development of
low carbon aircraft engine technologies. The UK Government will provide 
£45 million through its Technology Strategy Board (TSB) to support the research.
The TSB is currently considering a research programme called SILOET (Strategic
Investment in Low Carbon Engine Technology), which is expected to deliver a
substantial improvement in CO2 emissions and hence engine fuel economy.

2. SAMULET (Strategic Affordable Manufacturing in the UK through Leading
Environmental Technologies)

SAMULET is a Rolls-Royce-led collaborative programme to accelerate the
development of manufacturing and product technologies. It will focus on
productivity and environmental improvements, including efficient advanced
manufacturing processes and lower engine fuel consumption. The programme will
be closely linked with the advanced manufacturing research centres. It will be
valued at up to £90 million over four years and is receiving support of 
£28.5 million from the TSB and £11.5 million from the Engineering and Physical
Sciences Research Council, with further support under discussion with regional
bodies.

NOTE TO EDITORS

 1. Rolls-Royce is a global business, providing and supplying integrated power
    systems for use on land, at sea and in the air. The Group has established a
    strong position in civil aerospace, defence aerospace, marine and energy
    markets.
   
 2. Annual underlying revenues were £9.1 billion in 2008, 52 per cent of which
    came from services revenues. The firm and announced order book at the end
    of 2008 stood at £55.5 billion, providing visibility of future levels of
    activity.
   
 3. Rolls-Royce employs around 38,000 skilled people in offices, manufacturing
    and service facilities in 50 countries. The Group has a strong commitment
    to apprentice and graduate recruitment and to further developing employee
    skills.
   
 4. Businesses are headquartered in the UK, US and Singapore. This global
    presence allows the Group to deliver benefits to its partners, in addition
    to being able to access long-term international growth opportunities with
    its technology, presence, partnerships and people.
   
 5. The Group has invested £1.4 billion in capital projects over the last five
    years and £3.7 billion in research and development (R&D). In 2008,
    Rolls-Royce and its partners invested £885 million in R&D, two thirds of
    which had the objective of further improving the environmental aspects of
    its products, in particular the reduction of emissions.
   
 6. Research and development is carried out in facilities in the UK, Canada,
    Germany, Singapore, the US and Scandinavia and the Group has particularly
    strong relationships with the 27 Rolls-Royce University Technology Centres
    worldwide.
   
 7. Rolls-Royce has been closely involved in developing the network of UK
    manufacturing research centres. These centres provide an infrastructure to
    support public and privately funded manufacturing technology research.
    Rolls-Royce joined the Advanced Manufacturing Research Centre (AMRC) in
    Sheffield, which opened in 2004, with founder member Boeing. In early 2009
    it opened the £10 million Rolls-Royce Factory of the Future, a four-fold
    expansion of the AMRC, on the same Sheffield site. In 2007, Rolls-Royce
    agreed with Scottish Enterprise and Strathclyde University to launch the
    Advanced Forming Research Centre (AFRC), which will open in 2010, and on 
    15 July 2009 announced its leading role in the Nuclear Advanced Manufacturing
    Research Centre (NAMRC). The Group has also been involved in launching
    centres in the USA (Virginia) and Singapore.
   
 8. Technical information:
   
  * Turbine blades are complex aero engine components. They are a primary
    driver in enabling the performance cycle that reduces fuel consumption and
    are therefore fundamental to the economic competitiveness and environmental
    performance of the engine.
   
  * Discs are rotating parts used in fans, compressors and turbines. They are
    critical to the integrity, performance and economic competitiveness of the
    engine.
   
  * Wide chord fan blades are complex, technologically advanced components used
    in fans for civil and military engines.
   
For further information:

Investor relations:
Mark Alflatt
Director of Financial Communication
Rolls-Royce plc
Tel: [phone]
[e-mail]

Media relations:
Nicky Louth-Davies
Director of Corporate Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]