Re Contract

2 September 2003

                 GREECE BECOMES LATEST CUSTOMER TO SELECT THE                  

                         ROLLS-ROYCE TURBOMÉCA RTM322                          

The Rolls-Royce Turboméca (RRTM) RTM322 engine has been selected by Greece to
power its new fleet of twin-engine NH90 multi-role helicopters. The Hellenic
Armed Forces have ordered 20 aircraft plus 14 options.

With this order, Greece becomes the eighth of nine NH90 customers to select the
RTM322 engine.

Commenting on this latest order success, John Boughton, Marketing and Sales
Director Rolls-Royce Defence, said: "We are delighted that Greece has selected
the RTM322 and become the latest in a growing list of customers. The RTM322 is
the lead engine on the NH90 and, in a very competitive environment, it
continues to demonstrate why it is the world's leading engine in its class
today."

"The selection of the RTM322, in a succession of engine competitions, has
clearly demonstrated that the customer favours a new engine that is at the
beginning of its life cycle and has a very clear growth path for the future."

RTM322 engines have powered more than 95 per cent of the flying undertaken on
the NH90 to date. The RTM322 qualification programme on NH90 will be finished
by the end of 2003, in preparation for deliveries to Germany and Finland in
early 2004.

Since 2001, the RTM322 has won every competition that it has entered: it has
been selected by nearly 90 per cent of NH90 customers and also powers over 75
per cent of all EH101 helicopters ordered. The RTM322 is also being offered for
a number of additional applications, including the AgustaWestland/Lockheed
Martin US101, the Sikorsky S-92 and the Sikorsky UH-60 Black Hawk family.

RTM322 has been in service with the Royal Navy, Army Air Corps and Royal Air
Force since 1998. A total of over 360 engines have been delivered and they
currently equip Merlin Helicopters on operational service in the Arabian Gulf
and in Bosnia.

Notes to Editors : Rolls-Royce Turbomeca is jointly owned by Rolls-Royce plc
and Turbomeca, part of the Snecma Group. Since its formation in 1966, it has
developed and produced more than 2,800 Adour turbofan engines for the SEPECAT
Jaguar, BAE SYSTEMS Hawk and Mitsubishi T-2/F-1 fleets. In 1983, RRTM began
development of the RTM322, which entered service with the Royal Navy in Merlin
HM Mk1 in 1998 and the GKN Westland WAH-64 Apache in March 2000. To date orders
for more than 1,100 engines have been received.

For more information, please contact:

Nick Britton Rolls-Royce

Phone: [phone] email: [e-mail]

Bettina Frey Turbomeca

Phone: [phone] email: [e-mail]

Keith Reid Rolls-Royce Turbomeca Limited

Phone: [phone] email ; [e-mail]

                                                                               
                                                                               
                                  Press Release