TYPHOON ORDER WORTH OVER GBP750M TO ROLLS-ROYCE

Friday 17th December 2004

        TYPHOON TRANCHE 2 ORDER WORTH OVER £750 MILLION TO ROLLS-ROYCE         

Rolls-Royce has announced that its share of the Tranche 2 order is worth more
than £750 million. Rolls-Royce is a 36 per cent shareholder in Eurojet, the
European consortium responsible for the EJ200 engine that powers the
Eurofighter Typhoon twin-engine combat aircraft.

The Tranche 2 contract covers 519 engines for which Rolls-Royce will produce
the combustion system, high pressure turbine, intermediate casing and other
components. The company will also assemble, test and deliver 195 engines for
the RAF. Work on Tranche 2 engines will start in 2005 and Rolls-Royce
anticipates producing approximately 40 engines a year over the next five years
to fulfil the RAF order.

The EJ200 programme sustains approximately 4,000 high-value jobs throughout
Rolls-Royce and its supply chain, with activity centred at the Rolls-Royce site
in Bristol, from where the programme is managed and engines for the RAF
assembled and tested. Major components for the engine are also produced at
Rolls-Royce sites at Ansty and Derby.

Colin Green, President of Rolls-Royce Defence Aerospace, said: "We are
obviously delighted to finalise this agreement which brings stability to our
future production and underpins around 4,000 highly skilled jobs for
Rolls-Royce and its supply chain. The EJ200 engine is already earning plaudits
for its performance from the RAF and we are achieving landmark availability
levels both through its superior design and our innovative support activities."

For more information, please contact:

Justine Steele

Head of Communications - Defence Aerospace, Rolls-Royce

Phone: [phone]

Email: [e-mail]

www.rolls-royce.com