Statement re Reduction of Capital

26 June 2003

Rolls-Royce Group plc: Reduction of capital becomes effective

The Rolls-Royce Group plc reduction of capital became effective on 25 June 2003
and the nominal value of an ordinary share in the capital of Rolls-Royce Group
plc has been reduced from 70 pence to 20 pence. Dealings in respect of ordinary
shares of 20 pence each in the capital of Rolls-Royce Group plc commenced on
the London Stock Exchange's market for listed securities at 8.00 am on 26 June
2003.