T56 engine upgrade programme

7 March 2012

 ROLLS-ROYCE AND US AIR FORCE LAUNCH FUEL SAVINGS FLIGHT TESTS ON C-130 FLEET

Indianapolis, US - Rolls-Royce, the global power systems company, and the
United States Air Force will soon begin flight tests of an engine upgrade for
the T56 turboprop engine, which powers the C-130H transport aircraft. The
Series 3.5 upgrade is designed to deliver both fuel savings and reliability
improvements, as well as improved Life Cycle Costs.

Rolls-Royce has delivered upgrade kits to be installed on an Air Force C-130H
test aircraft, with flight tests scheduled to begin by mid-year. The
enhancements use proven technologies from other Rolls-Royce commercial and
military engines, including new blade materials and advanced turbine airfoil
aerodynamic designs.

The engine upgrade program is expected to deliver significant benefits to the
Air Force's C-130H fleet, enabling the aircraft to continue operation until
2040 while delivering fuel savings of 8 percent; along with improved
reliability and performance. The Series 3.5 enhancement will also improve "hot
and high" performance. Approximately 220 C-130H aircraft are eligible for
upgrades.

"We recognize the US Air Force has a goal of improving energy efficiency, and
Rolls-Royce has invested to help this valued customer meet its goal. In doing
so, we improved engine reliability and performance, which will enable the 
Air Force to extend the life of its C-130 fleet for decades while potentially
saving billions of dollars," said Patricia O'Connell, President, Customer Business, 
Rolls-Royce Defense.

An Air Force analysis estimated long-term savings of $3.5 Billion from the
Series 3.5 enhancements over the lifetime of the fleet. The engine upgrade can
be accomplished as part of a conventional engine overhaul, and does not require
any aircraft or engine control system modifications.

The engine upgrades will help the Air Force to achieve its goal of reducing
consumption of aviation fuel by 10 percent by 2015.

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 4,000 marine customers,
    including 70 navies, and energy customers in more than 80 countries.
   
 3. Annual underlying revenues were £11.3 billion in 2011, of which more than
    half came from the provision of services. The firm and announced order book
    stood at £62.2 billion at 31 December 2011, providing visibility of future
    levels of activity.
   
 4. Rolls-Royce employs over 40,000 skilled people in offices, manufacturing
    and service facilities in over 50 countries. Over 11,000 of these employees
    are engineers.
   
 5. In 2011, Rolls-Royce invested £908 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. The T56 engine, rated at 3,250 to 5,800 shaft horsepower, holds the record
    as the longest-running continuous production engine in the large turboprop
    class, with over 50 years of success.
   
 7. The Series 3.5 engine enhancement kit is designed for retrofit into 
    T56 turboprop engines powering military applications, such as the 
    C-130H military transporter, the P-3 military maritime patrol aircraft 
    and the commercial L-100 variant
   
For further information, please contact:

Investors:                                                       
Simon Goodson
Director - Investor Relations
Rolls-Royce Holdings plc
Tel: [phone]
[e-mail]

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

www.Rolls-Royce.com