Re Joint Venture

14 August 2008

                        ROLLS-ROYCE AND GOODRICH PROPOSE                        
                         ENGINE CONTROLS JOINT VENTURE                         

Rolls-Royce plc and Goodrich Corporation announced today that they have signed
a Letter of Intent proposing the formation of a joint venture company, which
would develop and supply engine controls for Rolls-Royce aero engines.

If the proposed joint venture goes ahead, it would enable the two companies to
integrate their engine controls activity more closely. It would combine
Goodrich's existing UK-based engine controls design and manufacturing business
and Rolls-Royce's expertise in the integration of controls into the engine.
Goodrich would retain the aftermarket products and services business associated
with the joint venture's products.

Under the proposals, each of the contributing companies would own 50 per cent
of the joint venture company. Both companies will begin discussions with
employee representatives on proposed timescales for consultation.

Colin Smith, Director - Engineering & Technology, Rolls-Royce plc said: "This
proposed joint venture would allow us to align our activities more closely, and
reflects the importance we attach to the engine control system in optimising
engine performance."

Curtis Reusser, Segment President, Electronics Systems, Goodrich said: "This
arrangement would bring benefits to both our companies. Goodrich already works
closely with Rolls-Royce and we believe closer integration would provide an
even more efficient delivery of these important engine control systems."

Notes to editors

 1. Goodrich's UK-based controls design and manufacturing is based in
    Birmingham and Belfast, UK. Rolls-Royce aero controls engineers are based
    in Bristol and Derby in the UK, Dahlewitz in Germany and Indianapolis in
    the United States.
   
 2. Around 1,100 UK-based Goodrich employees and 500 Rolls-Royce employees in
    Europe and the US may transfer into the proposed joint venture.
   
 3. Should it go ahead, the aim would be to complete the joint venture as soon
    as possible, subject to regulatory review, consultation and approval which
    is expected to take several months.
   
 4. The engine control system ensures that the engine safely provides the
    correct power in response to the pilot's demand. It does this by regulating
    the flow of fuel to the engine and adjusts many other variable features,
    which optimise the engine performance and ensure safety. The system also
    provides data to the aircraft avionic systems and for cockpit indication.
    It consists of electronic, hydraulic and mechanical components and depends
    for its function on high integrity software.
   
 5. 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. The Group
    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. For more information visit http://
    www.rolls-royce.com.
   
 6. Goodrich Corporation, a Fortune 500 company, is a global supplier of
    systems and services to aerospace, defense and homeland security markets.
    With one of the most strategically diversified portfolios of products in
    the industry, Goodrich serves a global customer base with significant
    worldwide manufacturing and service facilities. For more information visit
    http://www.goodrich.com.
   
For further information, please contact:

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

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