Re Contract

RNS Number : 3627E

Rolls-Royce Holdings plc

09 April 2014

9 April 2014

ROLLS-ROYCE AWARDED $100 MILLION CONTRACT TO SERVICE US NAVY

T-45 TRAINER AIRCRAFT ENGINES

Rolls-Royce has been awarded a Contractor Logistics Support (CLS) contract valued at over $100m by the US Department of Defense to provide continued support for the F405 (Adour) engines that power the US Navy's T-45 training aircraft.

The follow-on, one-year contract will continue the successful support which has provided the US Navy's training fleet with guaranteed availability over the past ten years.

Paul Craig, Rolls-Royce, President - Defense Services, said: "At Rolls-Royce, we are focused on providing innovative and affordable customer solutions. We have been working with the US Navy's F405 fleet for a decade and we appreciate their continued confidence in our service capabilities. We take great pride in supporting the training of new aviators for the Navy and Marine Corps.

"The Adour is an industry leader in low-risk, affordable engine performance for military trainer aircraft and has amassed more than 8.6 million flight hours across multiple global fleets," Craig added.

In addition to powering the T-45 Goshawk and other military aircraft, the Adour engine will also power the Hawk AJTS aircraft, which is a contender for the US Air Force T-X trainer program.

Under the terms of the agreement, which is administered by the Naval Air Systems Command (NAVAIR), Rolls-Royce will provide intermediate, depot level maintenance and related logistics support for more than 200 F405 engines in the US Navy fleet.

This contract includes support for aircraft operating at four main Naval Air Stations - Kingsville, Texas; Meridian, Mississippi; Pensacola, Florida; and Patuxent River, Maryland.

About Rolls-Royce Holdings plc

1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.

2. Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy & Nuclear and Power Systems. Rolls-Royce currently has 50% ownership of Rolls-Royce Power Systems (RRPS), a collaboration with Daimler AG. RRPS was fully consolidated in the results of Rolls-Royce Holdings plc for the first time in 2013. On 7 March, 2014, Daimler announced their intention to exercise their put option to sell their 50% share in RRPS to Rolls-Royce Holdings plc.

3. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.

4. Our business is focused on the 4Cs:

· Customer - placing the customer at the heart of our business

· Concentration - deciding where to grow and where not to

· Cost - continually looking to increase efficiency

· Cash - improving financial performance.

5. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.

6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 29 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.

7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.

8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes.

For further information, please contact:

Media:

Richard Wray

Director of External Communications

Rolls-Royce plc

Tel: +44 (0)7974 918416

richard.wray@rolls-royce.com

Investors:

Simon Goodson

Director - Investor Relations

Tel: +44 (0)20 7227 9237

simon.goodson@rolls-royce.com