New Chairman Announced

Rolls-Royce PLC
18 October 2002

                                                                 17 October 2002



                  EUAN BAIRD NAMED CHAIRMAN OF ROLLS-ROYCE PLC


Rolls-Royce plc today (17 October 2002) announced that Euan Baird will become
its non-executive Chairman with effect from 1 February 2003.  He will join the
Board of the company as a non-executive director on 1 November 2002.

He will succeed Sir Ralph Robins, who will retire as Rolls-Royce Chairman at the
end of January next year.

Scottish-born Euan Baird has been Chairman and Chief Executive Officer of global
technology services company Schlumberger Limited since 1986.  He will retire
from Schlumberger early next year, after a distinguished international career
spanning 40 years with the company, which achieved annual revenues of $14.3
billion in 2001.

Commenting on the appointment, Sir Ralph Robins said: 'I am delighted to have a
successor of the calibre of Euan.  His extensive international experience and
leadership skills, together with his keen commercial acumen are exactly the
qualities the Board has been seeking in a new Chairman.  He is going to lead a
great company with huge potential.'

Rolls-Royce Chief Executive, John Rose, said: 'Sir Ralph has made a major
contribution to Rolls-Royce over nearly half a century and I would like to wish
him a long and happy retirement.  Euan's experience in building a global,
knowledge-based technology services company like Schlumberger will be invaluable
to Rolls-Royce at this stage in our development.  Our skills and experience will
complement each other and I look forward to working with him during the next
phase of the company's development.'

Euan Baird said: 'I am excited to join another globally-recognised name in
engineering and technology with an established and enviable history.
Rolls-Royce epitomises integrity, reliability and innovation and I look forward
to using my international experience to continue to grow its profitability and
strengthen its market position worldwide.'


Note to editors:

Euan Baird was born in Aberdeen, Scotland in September 1937. He attended
Aberdeen University and Trinity College, Cambridge receiving an M.A. in
Geophysics from Cambridge University in 1960. He has also received a DSc degree
from Heriot-Watt University in 1999 and LL.D degrees from Aberdeen University in
1995 and Dundee University in 1998.

He joined Schlumberger in 1960 as a field engineer and was elected Chairman of
the Board, President and Chief Executive Officer in 1986. He is retiring from
the company in early 2003.

He is married to the Danish writer and journalist Merete Baird and they have two
daughters.


 Present outside activities include;


-    Trustee of the Carnegie Institution of Washington since 1997.
     
-    Member of the Prime Minister's 'Comite National de la Science' in France 
     from 1998 to 2002.

-    Member of the Prime Minister's Council of Science and Technology in the UK 
     since 2000.

-    Non-executive Directorships of Scottish Power, Areva and Societe Generale 
     since 2001.


Rolls-Royce plc operates in four growth markets - civil aerospace, defence
aerospace, marine and energy.  It is a global company investing in technology
and capability that can be exploited in each of these sectors to create a
competitive range of products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years.  As a result, engine
deliveries have grown to a total of 53,000 gas turbines in service worldwide.
The investments in product, capability and infrastructure to gain this market
position create high barriers to entry.

Rolls-Royce has a broad customer base consisting of more than 500 airlines,
4,000 corporate and utility aircraft and helicopter operators, 160 armed forces
and more than 2,000 marine customers, including 50 navies. The company has
energy customers in nearly 120 countries.  Rolls-Royce employs around 39,000
people worldwide, including 23,500 in the UK, 5,000 in the rest of Europe and
8,000 in North America.

Most of the engines in service will have operational lives of 25 years or more,
generating an assured aftermarket demand for the provision of spare parts and
services.   The company's strategy is to maximise aftermarket revenues through
the development of a comprehensive services capability.

Annual sales total around £6 billion of which over 40 per cent currently comes
from aftermarket services. The order book stands at more than £19 billion,
which, together with aftermarket demand, provides visibility as to future
activity levels.


For further information, please contact:

Colin Duncan
Director of Corporate Communications
Rolls-Royce plc
Tel: [phone]
Email: [e-mail]
Website: www.rolls-royce.com


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