Market Forecast Update

May 19, 2008                                  

                ROLLS-ROYCE FORECASTS BUSINESS AVIATION GROWTH:                
                   MEDIUM AND LARGE JET DELIVERIES DOMINATE                    

Geneva, Switzerland - Rolls-Royce today predicted continued growth in business
jet deliveries through the remainder of the decade and forecast an engine
market worth $110 billion over the next 20 years, with medium and large
business jets dominating in terms of aircraft and engine value. The company's
business jet forecast was released at the 2008 European Business Aviation
Conference and Exhibition (EBACE) in Geneva.

Rolls-Royce forecasts that 79,000 engines, valued at $110 billion, are needed
over the next 20 years to meet a demand for 39,000 new business jet aircraft,
from very light jets to business jetliners. Demand is being augmented by an
increase in deliveries to non-USA markets coupled with the introduction of new
models, which will add a further stimulus to the market.

Demand is being fuelled by the business community's increasing recognition of
the value of using business jets as a means of enhancing productivity.

Of the 39,000 new business aircraft, 40 per cent are expected to be in the
medium or large business jet category (75 per cent by value). The forecast
predicts that nearly 16,000 medium and large business jets will be delivered
between 2008 and 2027.

These are the sectors in which Rolls-Royce has successfully participated for
over 40 years, resulting in a market leading 34 per cent share by value of the
total sector.

Rolls-Royce is working hard to improve the environmental impact of its products
and has the youngest, most fuel-efficient engine fleet of all the engine
manufacturers. It has brought six new civil engine programs to market in the
past six years, two of which are applications for the corporate market.

To further strengthen its position in this growing market, Rolls-Royce is
developing the BR725 engine which will power the Gulfstream G650. This is a new
sector defining aircraft. It features a large cabin, long range and high speed.
In addition, the RB282 engine has been launched on the Dassault SMS, a new
super mid-sized business jet.

The BR725 engine will set the standard in environmental performance for the
corporate market, reflecting Rolls-Royce's continuous focus on reducing noise
and emissions through its investment in technology.

Other engines in the Rolls-Royce portfolio include: the AE 3007 engine powering
the Cessna Citation X and Embraer Legacy 600; the Tay 611-8C engine powering
Gulfstream's G350 and G450; and the BR710 engine powering the Bombardier Global
Express, Global 5000 and Gulfstream G500 and G550 aircraft.

All of these engines are supported by Rolls-Royce CorporateCare®, the
industry's most comprehensive engine maintenance management program.

Alan Stiley, Rolls-Royce Vice President for Marketing, Corporate and Regional
Engines said: "The market continues to grow at a robust rate; it has also
become more diverse in terms of geographic distribution and breadth of aircraft
capability available. In response, Rolls-Royce will continue to invest in new
products and services in order to maintain its leading position with business
aircraft operators and manufacturers."

For a copy of the full presentation, please visit:
www.rolls-royce.com

NOTES TO EDITORS:

 1. 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, defence aerospace, marine and energy.
   
 2. In 2007, Rolls-Royce maintained a market-leading 34 per cent share of
    business jet engine deliveries, based on the value of its share of that
    year's estimated $2.3 billion business jet engine market.
   
 3. The business jet engine products include: the AE 3007, produced in
    Indianapolis, Indiana, powering the Embraer Legacy and Cessna Citation X;
    the Tay 611 series, manufactured in Dahlewitz, Germany, used on the
    Gulfstream G350 and G450; and the BR710, also built in Dahlewitz, powering
    Bombardier's Global 5000 and Global Express and the Gulfstream G500 and
    G550. The two in-development engines are the BR725 for the Gulfstream G650
    and the new RB282 selected for the Dassault SMS.
   
 4. The business jet market has long been a successful element of the
    Rolls-Royce portfolio of aircraft engines. The company powers 15 different
    in-service business jet types* in a fleet of 2,100 aircraft. Over one third
    of this fleet is covered by a long-term maintenance agreement with
    Rolls-Royce.
   
 5. Rolls-Royce offers long-term CorporateCare® maintenance agreements for its
    BR725, BR710, Tay, RB282 and AE 3007 engines. The company also provides
    traditional field service, repair and overhaul for these engines and the
    company's out-of-production Dart and Spey business jet engines.
   
 6. Rolls-Royce is working hard to improve the environmental impact of its
    products. Each year, in collaboration with its partners, it invests over
    £800 million on research and development, two thirds of which has the
    objective of reducing the environmental impact of its products. The primary
    technology investment area is aimed at reducing noise and emissions.
   
 7. 2007 annual sales total were £7.4 billion, of which 55 per cent related to
    aftermarket service revenues. The order book at December 2007 was £45.9
    billion, which together with demand for services, provides visibility as to
    future levels of activity.
   
For further information, please contact:

Mark Alflatt
Director of Financial Communications
Rolls-Royce plc
Tel: [phone]