Services

Rolls-Royce PLC
30 January 2001


ROLLS-ROYCE DEVELOPS FINANCIAL SERVICES

Rolls-Royce plc has today (30 January, 2001) announced further development of
its financial services activities. GATX Capital, its partner in Rolls-Royce
and Partners Finance - the world's largest specialist aero gas turbine
business - has agreed to acquire a 50 per cent equity stake in Pembroke Group,
an aircraft leasing business jointly owned by Rolls-Royce.

Pembroke Group Limited, which has a current portfolio of 145 aircraft owned,
managed or on order or option, was formed in December 1998 when 
Rolls-Royce merged its existing aircraft leasing business with Pembroke
Capital Limited, the Dublin-based aircraft leasing and financial services
company.

GATX Capital, the American-based financial services company, will purchase the
equity in Pembroke Group currently owned by International Investments  and
Underwriting, and Pembroke management and founders. 

Following the transaction, Pembroke Group will be owned equally by
Rolls-Royce plc and GATX Capital. 

John Rose, Chief Executive of Rolls-Royce said:  'Rolls-Royce has consistently
invested in financial and aftermarket services to support our businesses.  The
participation by GATX in this joint venture is an endorsement of the approach
Rolls-Royce taken in developing this business.'

Note to editors

Rolls-Royce plc is a global company providing power for land, sea and air. The
company has established leading positions in civil aerospace, defence, marine
and energy markets. Its core gas turbine technology has created one of the
broadest product ranges of aero engines in the world, with 55,000 engines in
service in over 150 countries. Customers include more than 500 airlines, 2,400
corporate and utility operators and 160 armed forces, using both fixed and
rotary wing aircraft. 

Rolls-Royce is the global leader in marine power systems with a broad product
range and full systems integration capability. Over 2,000 marine customers and
more than 30 navies use Rolls-Royce propulsion. The company is investing in
new products and capabilities for energy markets which include the oil and gas
industry and power generation. It also develops its own power projects through
Rolls-Royce Power Ventures Ltd.

Rolls-Royce pioneered gas turbine technology for aerospace, power generation
and marine propulsion and is involved in  the major future programmes in these
fields. These include the Trent aero and industrial engines, the Eurofighter
Typhoon and Joint Strike Fighter combat engines, the WR21 marine engine and
leading edge water jet propulsion systems.

GATX Capital Corporation is a wholly-owned subsidiary of GATX Corporation
(NYSE: GMT), a unique finance and leasing company combining asset knowledge
and services, structuring expertise, creative partnering and risk capital.
GATX provides sophisticated leasing and financial services responsive to the
specialized needs of a range of businesses.

In addition to offering aircraft operating leasing, GATX specializes in
railcar and locomotive operating leasing, information technology services
leasing, venture finance, and financing solutions for customers in diversified
markets, worldwide.

Further information on GATX Capital Corporation can be found at
www.gatxcapital.com.  For further information on GATX Corporation please visit
www.gatx.com.

For further information please contact:

Tim Blythe
Director - Corporate Communications
Rolls-Royce plc
Tel:   [phone]
Fax:  [phone]
www.rolls-royce.com