Re Contract

16 December 2010                                

ROLLS-ROYCE AWARDED $89 MILLION MISSIONCARE CONTRACT FOR U.S. NAVY T-45 TRAINER
                                ENGINE SUPPORT                                 

Rolls-Royce, the global power systems company, has been awarded an 
$89 million MissionCareâ„¢ contract by the U.S. Department of Defense Naval Air
Systems Command at Patuxent River to provide support for the 
F405 (Adour) engines that power the U.S. Navy's T-45 training aircraft.

This contract modification exercises the second option year to provide
guaranteed engine availability, which includes support ranging from on-wing
through intermediate and depot level maintenance, under the base contract
signed in 2008. MissionCare is used within the Rolls-Royce Defense sector to
apply commercial Power By The Hour® principles to the unique requirements of
the defense business.

Wayne Moni, Chief Operating Officer of Rolls-Royce Defense Services said, "We
are proud of our partnership with the U.S. Navy and its mission to prepare
student aviators for jet carrier aviation and tactical strike missions. We look
forward to another successful year of providing the best engine readiness and
availability."

Under the terms of the agreement, which is administered by the Naval Air
Systems Command (NAVAIR), Rolls-Royce will provide all maintenance, support,
trouble-shooting, parts supply and logistics for both the F405 engine and the
aircraft gas turbine starting system. This contract provides comprehensive
propulsion services to more than 200 aircraft, operating at four main Naval Air
Stations - Kingsville, Texas; Meridian, Mississippi; Pensacola, Florida and
Patuxent River, Maryland.

Rolls-Royce manufactures the F405-RR-401 (Adour) engine in partnership with
Turbomeca. Rolls-Royce has been involved with T-45 program support since its
inception through a variety of contracts awarded by both the U.S. Navy and
Boeing.

NOTE 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. As a result of this strategy, Rolls-Royce today has a broad customer base
    comprising more than 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 nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Rolls-Royce employs over 39,000 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. The initial F-405 engine MissionCare contract was awarded to Rolls-Royce in
    October 2003 and has been renewed annually. It is truly "power by the hour'
    - a single contract line item number is used to pay a fixed price per
    aircraft hours flown at each operating base. Contract performance is
    measured almost exclusively against the fleet-driven performance metric of
    engine and starter system availability.
   
 5. In September 2010, Rolls-Royce completed 500,000 flight hours of
    MissionCareâ„¢ support for the F405-RR-401 (Adour) engines that power the
    U.S. Navy's T-45 training aircraft.
   
 6. The U.S. Navy's T-45 Goshawk aircraft completed one million flight hours in
    August 2010. More than 3,600 student aviators from the U.S. Navy, U.S.
    Marine Corps and several international militaries have received instruction
    on the system before earning their "wings of gold" naval aviator insignia.
   
 7. As the principal jet trainer for the Chief of Naval Air Training, the T-45
    is used to prepare student aviators to transition to front-line Navy and
    Marine Corps fleet aircraft, including F/A-18 Hornet, EA-6B Prowler, EA-18G
    Growler, AV-8B Harrier and the future F-35 Lightning II. The T-45 is used
    for intermediate and advanced portions of the Navy-Marine Corps pilot
    training program for jet carrier aviation and tactical strike missions.
    Currently, the T-45 is scheduled to remain in service with the Navy until
    2035.
   
 8. More than 2,800 Adour engines have been sold to 22 countries around the
    world, and the combined fleet has flown in excess of eight million flight
    hours.
   
For further information, please contact:

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

Media relations:
Josh Rosenstock
Head of Corporate Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]

www.rolls-royce.com