US Research Programme

16 August 2007

ROLLS-ROYCE SELECTED FOR ADVANCED TECHNOLOGY RESEARCH PROGRAMME FOR US MILITARY

Rolls-Royce has been selected to develop technology for the ADVENT programme,
the next-generation propulsion system for the US Air Force. The work will be
carried out at the Group's LibertyWorksâ„¢ research unit at Indianapolis, US.

The US Air Force Research Laboratory (AFRL) announced the agreement, which is
valued at up to $296 million over two phases of the programme.

ADVENT (Adaptive Versatile Engine Technology) is a technology demonstrator
programme funded by AFRL and focused on variable cycle features for future US
Military aerospace platforms. The goal is to enable a high-thrust capability
and a separate loiter operation with reduced fuel consumption.

LibertyWorks, known officially as Rolls-Royce North American Technologies Inc.,
has a long history of innovative service to the US military. It has contributed
technology to the F-35 Lightning II LiftFan and F136 engine; the IHPTET
(Integrated High Performance Turbine Engine Technology) programme; and the
RATTLRS supersonic missile.

Phil Burkholder, Chief Operating Officer for LibertyWorks, said: "We are
extremely pleased to be working with the Air Force Research Laboratory in
developing a new generation of propulsion technology. It's an exciting time in
aviation history. Working together with the AFRL, we will deliver some lasting
changes that will dramatically reduce fuel consumption."

Dennis Jarvi, President Defense North America for Rolls-Royce, said:
"LibertyWorks is a demonstrated leader in advanced technology propulsion
programmes for the US Department of Defense. This selection reflects the
confidence our customer has in the capability of Rolls-Royce to meet the future
propulsion system needs of the US Air Force."

NOTES TO EDITORS

1. LibertyWorksâ„¢ was previously known as Allison Advanced Development Co.
(AADC).

2. Rolls-Royce is a significant industry player in North America, with some
8,000 employees at more than 64 US locations in 26 states and eight Canadian
sites in six provinces.

3. The US Department of Defense is the Group's biggest single defence customer.
Rolls-Royce engines produced in the US and UK power the
C-130, C-27J, V-22, Global Hawk, T-45, AV-8 Harrier and other military
aircraft. In June 2007, Rolls-Royce was selected to power the Joint Cargo
Aircraft (JCA) programme for the US Army and US Air Force.

4. Headquartered outside of Washington, D.C., in Chantilly, Virginia,
Rolls-Royce North America provides management direction and corporate support
for all Rolls-Royce businesses and operations in the region. Annual sales in
North America are more than $4 billion and the company's total U.S. investment
stands at $1 billion and growing.

5. Globally, Rolls-Royce has a broad customer base comprising 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 120 countries. Rolls-Royce is a technology leader, employing
38,000 people in offices, manufacturing and service facilities in 50 countries.

For further information, please contact:

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