Re Contract

23 June 2011

                       ROLLS-ROYCE DEMONSTRATES TECHNOLOGY
                               LEADERSHIP IN PARIS

World-leading technology developed by Rolls-Royce, the global power systems
company, was one of the highlights of this week's Paris Airshow, where the
Group launched the latest member of the Trent family and won significant new
orders.

Rolls-Royce confirmed development of an enhanced Trent XWB engine, capable of
delivering 97,000lbs of thrust, for the enhanced Airbus A350-1000, while also
securing orders of $2.9 billion from customers in South America, 
the Middle East and Asia.

The Trent XWB continued its strong success with a $2.2bn order from TAM
Airlines for engines to power 27 Airbus A350-XWBs, along with TotalCare®
long-term support services.

The Trent XWB is the world's most advanced civil aircraft engine and the
Group's fastest selling, having already won orders for over 1,100 engines.
Responding to customer demand, this higher thrust variant will deliver
increased range and capacity for the aircraft.

In another significant milestone, the Group received certification from the
Japanese Civil Aviation Bureau for the cutting edge Trent 1000, which will
power the Boeing 787 Dreamliner's entry into service with All Nippon Airways
later this year. The Trent 1000 is the most efficient engine on the 
787 Dreamliner. It offers the lowest fuel consumption, noise and weight and 
will help the aircraft to reduce CO2 emissions by 20 per cent, when compared 
to previous generation aircraft.

Rolls-Royce also announced a contract to supply Enhanced Performance (EP) kits
to Etihad, which will improve the efficiency of the market-leading Trent 700
engine. EP kits enhance engine performance by more than 1 per cent, and will
reduce Etihad's annual CO2 emissions by up to 24,000 tonnes when applied to 
30 of their Airbus A330's. The $360m agreement also includes provision of
TotalCare support.

The Group highlighted its commitment to introduce new technologies into
existing engine lines with the signing of a Memorandum of Agreement with
Lockheed Martin. The agreement covers the provision of engine enhancements for
T56 engines, used by a range of military operators on C-130 Hercules and 
P-3 Orion fleets. These improvements can deliver a 9 per cent reduction in 
fuel consumption and have a significant impact on emissions.

Rolls-Royce is a senior partner in International Aero Engines, which received
orders for V2500 engines, worth $310m to Rolls-Royce.

Notes to Editors:

 1. Rolls-Royce is a world-leading provider of power systems and services for
    use on land, at sea and in the air, and has established a strong position
    in global markets - civil aerospace, defence aerospace, marine and energy.
   
 2. As a result of this strategy, Rolls-Royce has a broad customer base
    comprising more than 500 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,500 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Annual underlying revenues were £10.8 billion in 2010, of which more than
    half came from the provision of services. The firm and announced order book
    stood at £59.2 billion at 31 December 2010, providing visibility of future
    levels of activity.
   
 4. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing
    and service facilities in over 50 countries. Over 11,000 of these employees
    are engineers.
   
 5. In 2010, Rolls-Royce invested £923 million on research and development, 
    two thirds of which had the objective of further improving the environmental
    performance of its products, in particular reducing emissions.
   
 6. Rolls-Royce supports a global network of 28 University Technology Centres,
    which connect the company's engineers with the forefront of scientific
    research.
   
 7. The Group has a strong commitment to apprentice and graduate recruitment
    and to further developing employee skills.
   
 8. Rolls-Royce is a market leader in modern wide-body aircraft, with a family
    of six Trent engines covering all major platforms. The Group has achieved a
    50 per cent market share in the wide-body market, with 1,790 Trent engines
    in service and more than 2,400 on order.
   
 9. The Trent XWB is the most advanced civil turbo fan engine in the world and
    the fastest selling Trent ever. Orders are in place for 574 aircraft, from
    36 customers.
   
For further information please contact:

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

Media Relations:
Josh Rosenstock
Director of External Communications
Rolls-Royce Holdings plc
Tel [phone]
Email: [e-mail]

www.rolls-royce.com