Contract Awarded

ROLLS-ROYCE PLC
13 July 1999

ROLLS-ROYCE SHARES IN $440 MILLION JSF CONTRACT

Rolls-Royce plc is to share in a $440 million contract to develop and test
engines for Joint Strike Fighter aircraft under development for the 21st
century.

The Phase III contract with the JSF Program office has been won by the 
JSF-F120 engine team which consists of Rolls-Royce, the Allison Advanced
Development Company, GE Aircraft Engines (GEAE) and Philips Machinefabriek.

The Phase III effort consists of a firm requirement for $115 million and an
option for $325 million and is a follow-on to the four-year Phase II contract
awarded to the JSF-F120 engine team in 1996.  Phase III firm and option
contract covers engine development activities for the period of October 2000
to September 2004.

While operating on schedule and on cost for the Phase II programme, the 
JSF-F120 team is preparing to run a full core engine test in mid-2000.  The
team successfully completed the JSF Office's Critical Design Review for the
JSF-F120 core earlier this year and has released hardware for component
testing.  Key component-rig tests planned during 1999 include the turbine at
GEAE and the combustor at AADC.

The Phase III contract, which also includes component and subsystem testing,
will lead to full JSF-F120 engine testing for the winning JSF aircraft
contractor in the first half of 2003.

In Phase III, JSF-F120 engines will be tested for the JSF variants: Short
Takeoff Vertical Landing (STOVL) for the U.S. Marine Corps and United Kingdom
Royal Navy, Conventional Takeoff/Landing (CTOL) for the U.S. Air Force, and
the Carrier Variant (CV) for the U.S. Navy.

For the JSF-F120, GE is developing a multistage blisk compressor, radial
augmentor and dual control system, and advanced exhaust system components. 
AADC and GEAE are jointly developing a coupled turbine system (an integrated
high-pressure/low-pressure counterrotating design), while AADC is responsible
for the combustor/diffuser systemand the gearbox.  Rolls-Royce is developing
an increased-flow, three-stage, long-chord hollow titanium blisk fan.

PMF joined the JSF-F120 team last month and will lead a consortium of Dutch,
Norwegian, and Danish companies to join in the design, development, and
manufacture of the propulsion system.  The PMF consortium will develop
world-class technologies to be applied to a wide variety of JSF-F120 engine
components.

For further information, please contact:-

Peter Barnes-Wallis
Director of Corporate Communications
Tel:       [phone]
Fax:       [phone]

Rolls-Royce home page: www.rolls-royce.com