Re Contract

ROLLS-ROYCE HOLDINGS PLC - Re Contract

PR Newswire

London, January 15

ROLLS-ROYCE WINS NEW ENGINE SUPPORT CONTRACT IN SAUDI ARABIA

Following agreement between the Governments of the Kingdom of Saudi Arabia andthe United Kingdom, under the Saudi British Defence Co-operation Programme,Rolls-Royce, the global power systems company, has signed a contract to providesupport for engines powering the Royal Saudi Air Force fleet of Tornado combataircraft.

The four-year agreement provides the repair of modules, accessories andcomponents and a package of new spares for the Tornado's RB199 engines.

The contract has been agreed with the Saudi Maintenance and Supply ChainManagement Company which acts as the logistics supplier to BAE Systems in SaudiArabia. It enables the Royal Saudi Air Force to benefit from a schedule offixed price maintenance which seeks to reduce the cost of engine operations.

Nick Durham, Rolls-Royce President of Customer Business - Defence, said:

"We are delighted to have concluded this agreement which will provide the RoyalSaudi Air Force with support for its fleet of RB199 engines over the next fouryears. The Air Force is a longstanding and valued customer and we will continueto work together to provide the best possible support for its expandingRolls-Royce engine fleet."

The Middle East Propulsion Company (MEPC) will conduct some of the RB199 modulerepair work in support of this contract in its recently opened facilities inRiyadh. Rolls-Royce is also assisting MEPC to build up its capability tosupport T56 engines powering the Royal Saudi Air Force's C-130 militarytransport fleet.

Notes to Editors:

1. Rolls-Royce is a world-leading provider of power systems and services foruse on land, at sea and in the air, and has established a strong position inglobal markets - civil aerospace, defence aerospace, marine and energy.

2. As a result of this strategy, Rolls-Royce has a broad customer basecomprising more than 500 airlines, 4,000 corporate and utility aircraft andhelicopter operators, 160 armed forces, more than 4,000 marine customers,including 70 navies, and energy customers in more than 80 countries.

3. Annual underlying revenue was £11.3 billion in 2011, of which more than halfcame from the provision of services. The firm and announced order book stood at£60.1 billion at 30 June 2012, providing visibility of future levels ofactivity.

4. Rolls-Royce employs over 40,000 people in offices, manufacturing and servicefacilities in over 50 countries. Over 11,000 of these employees are engineers.

5. In 2011, Rolls-Royce invested £908 million on research and development, twothirds of which had the objective of further improving the environmentalperformance of its products, in particular reducing emissions.

6. Rolls-Royce supports a global network of 28 University Technology Centres,which connect the company's engineers with the forefront of scientificresearch.

7. The Group has a strong commitment to apprentice and graduate recruitment andto further developing employee skills.

For further information, please contact:

www.Rolls-Royce.com