£25m Share in MTR390 Helicopter Engine Contract

Rolls-Royce PLC
17 January 2000


ROLLS-ROYCE SHARES IN MTR390 HELICOPTER ENGINE CONTRACT

Rolls-Royce plc, the civil aerospace, defence, marine and energy group, has
won a share of a £140 million (DM430 million) contract for the first 320 of
approximately 1,000 MTR 390 engines, which will power Tiger attack helicopters
of the French and German armed forces.  The Rolls-Royce share of this initial
order is worth more than £25 million.

Officials of the German Federal Office of Defence Technology and Procurement
(BWB) and MTU Rolls-Royce Turbomeca GmbH (MTR) signed the contract yesterday
in Germany.

Production work under the new contract will be undertaken in the facilities of
the three partner companies in MTR - MTU Munchen, Turbomeca and Rolls-Royce -
with deliveries between 2001 and 2011.

Hans Fischer, MTR's managing director, said:  'The contract covers the
production of the first batch, which is a major boost for the MTR partners'
production lines in France, Germany and the UK.  The production go-ahead will
also help the marketing efforts aimed at finding new applications for the
MTR390 engine.'

Under current workshare arrangements, MTU is responsible for the combustor and
high-pressure turbine, Turbomeca for the compressor, gearbox, accessories and
control system, including FADEC, and Rolls-Royce for the power turbine.  Most
of the 
Rolls-Royce manufacturing activity is undertaken at its Ansty,  Bristol and
Derby factories.

Thirty development and prototype engines were manufactured to undertake bench
and flight development programmes.  The engine type has so far logged 17,400
running hours, including more than 6,000 in flight, powering Tiger prototypes
and Panther flying test beds.

The MTR390's export prospects are promising, with discussions presently under
way with potential Tiger customers in Australia, Spain, Turkey, Norway, Sweden
and Finland.


For more information please contact:

Gary Atkins, Communications Manager, Rolls-Royce plc
Tel:  [phone]         Fax:  [phone]
e-mail:  [e-mail]