ROLLS-ROYCE GROUP PLC: Re Contract


                                                                  27 March 2008
              ROLLS-ROYCE WELCOMES `LANDMARK' AIRTANKER CONTRACT:              
                     TRENT ENGINES AND SUPPORT WORTH £700M                     

Rolls-Royce today welcomed the Ministry of Defence's award of the
£13 billion contract to the AirTanker consortium for the UK's Future Strategic
Tanker Aircraft (FSTA) Private Finance Initiative programme.

As a shareholder and sub-contractor to AirTanker, the value to Rolls-Royce over
the lifetime of the 27-year programme is estimated at over £700 million.

Rolls-Royce will build the Trent 700 engines which will power the fleet of 14
Airbus A330-200 tanker aircraft, as well as providing Mission Ready Management
Solutions support for the propulsion system in service.

The Trent 700 engine is the most popular engine on the Airbus A330, which
entered service in 1995. Its market share today stands at 53 per cent of firm
and option orders, including 70 per cent of orders placed in the last five
years. In the first three months of 2008, Trent 700 orders and TotalCare
service agreements totalled around $5 billion.

Martin Fausset, Managing Director of Rolls-Royce Defence Aerospace, said: "The
tanker contract is a landmark for Rolls-Royce. Our role in this programme will
extend well beyond manufacturing and supporting the Trent engines for the
Airbus A330s.

"As a shareholder in AirTanker we will also be involved in the total service
provision for the contract, marking a further milestone in developing our
aftermarket services strategy."

With the selection of AirTanker, the RAF will gain the same benefits from the
new Trent technology, such as high levels of fuel efficiency, as many of
today's leading airlines. The Trent 700 delivers the highest thrust available
on the A330 resulting in increased operational flexibility. It is also the only
engine on the A330 with a full-length cowl, reducing infra-red signature.

Rolls-Royce programme management and real-time, proactive diagnostic support
will be provided from its Defence Aerospace headquarters in Bristol, with
additional personnel based at RAF Brize Norton.

The engines will be assembled and tested at the Derby facility. Components for
the Trent engines will be manufactured throughout the Rolls-Royce global supply
chain

Note to editors

 1. Rolls-Royce is a shareholder in the AirTanker consortium which will provide
    the RAF with its air transport and air-to-air refuelling requirements for
    23 years, from 2011. The other shareholders are Cobham, EADS, Thales and
    VT.
     2. In line with its shareholding Rolls-Royce will contribute approximately 20
    per cent of the equity investment required for the programme, the majority
    of which is not payable until the operational phase of the programme.
     3. The Rolls-Royce Trent 700 delivers outstanding levels of performance and
    the highest available thrust on the A330, resulting in increased
    operational flexibility. Latest technologies fed into the engine as a
    performance improvement package have delivered better fuel-burn which
    translates into lower emissions. It has been selected by 52 A330 customers
    and operators.
     4. In engine competitions for follow-on A330 orders, the Trent 700 has an
    unprecedented 100 per cent success record. To date, 11 customers have
    placed additional orders for the Trent 700 following an initial fleet
    purchase.
     5. Trent 700s have logged eight and a half million flying hours and almost two
    and a half million flights on 214 A330s. A further 233 Trent-powered A330s
    on firm order have still to be delivered, plus 37 options.
     6. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy.
     7. The Group has a broad customer base comprising more than 600 airlines,
    4,000 corporate and utility aircraft and helicopter operators, 160 armed
    forces, more than 2,000 marine customers, including 70 navies, and energy
    customers in nearly 120 countries. It employs around 39,500 people
    worldwide people in offices, manufacturing and service facilities in 50
    countries.
     8. Annual sales were £7.4 billion in 2007, of which 55 per cent came from
    services revenues. The firm and announced order book at December 2007 was £
    45.9 billion, of which aftermarket services represent 30 per cent,
    providing visibility of future levels of activity.


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For further information:
Mark Alflatt
Director of Financial Communications
Rolls-Royce plc
Tel: +44 (0) 207 222 9020
Email: mark.alflatt@rolls-royce.com 
END
-0- Mar/27/2008 13:46 GMT
 
 
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