Statement Re: Pensions

13 April 2006

                         UK PENSION SCHEME DISCUSSIONS                         

Rolls-Royce Group plc today announced that it has commenced consultations with
representatives of members of its three UK pension funds (note 1) in order to
address the Group's pension fund deficit, whilst offering secure, competitive
and affordable pension arrangements for the Group and all its members. These
consultations follow the agreement reached in 2003, to reduce the deficit of
the main scheme (the Rolls-Royce Pension Fund) by £567m, and subsequent
discussions with the other two UK pension schemes.

These three UK schemes had a reported deficit of £1,285 million, at
31 December 2005.

The Group has proposed to make a lump sum contribution of £500 million across
the three schemes and to increase the level of future Group contributions.
These payments will depend primarily on the members of the schemes accepting
closure of the final salary pension schemes to new members and a change of
investment strategy to achieve progressively a better match between assets and
liabilities.

Enquiries:

Peter Barnes-Wallis
Director of Financial Communications
Rolls-Royce plc
65 Buckingham Gate
London
SW1E 6AT

Caroline Harris
Acting Director of Corporate Communications
Rolls-Royce plc
65 Buckingham Gate
London
SW1E 6AT
Tel: [phone]

www.rolls-royce.com


Notes to the Editor:

 1. The three UK schemes are the Rolls-Royce Pension Fund (RRPF), Rolls-Royce
    Group Pension Scheme (RRGPS) and the Vickers Group Pension Scheme (VGPS),
    with total membership as follows:
   
  * Active members        21,373
   
  * Current pensioners    60,493
   
  * Deferred members      37,188
   
  * Total                119,054
   
 2. The RRPF was closed to new members in 1999.
   
 3. Rolls-Royce, the world-leading provider of power systems and services for
    use on land, at sea and in the air, operates in four global markets - civil
    aerospace, defence aerospace, marine and energy. It is investing in
    technology and capability that can be exploited in each of these sectors to
    create a competitive range of products.