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Re Contract

31st Jul 2009 16:23

31 July 2009 TYPHOON TRANCHE 3 ORDER WORTH OVER 300 MILLION TO ROLLS-ROYCE

Rolls-Royce, the global power systems company, has announced that its share of the Eurofighter Typhoon Tranche 3 order is worth more than 300 million.

Rolls-Royce is shareholder in Eurojet, the European consortium responsible for the EJ200 engine that powers the Eurofighter Typhoon twin-engine combat aircraft, and has a 37% production share of the programme.

The Tranche 3 contract covers 241 engines for which Rolls-Royce will produce the combustion system, high pressure turbine, intermediate casing and other components. The company will also assemble, test and deliver engines for the UK Royal Air Force (RAF). Work on engines will start in 2010.

The EJ200 programme sustains over 3,000 high-value jobs throughout Rolls-Royce and its supply chain, with activity centred at the Rolls-Royce site in Bristol, where engines for the RAF are assembled and tested.

Martin Fausset, Managing Director of Rolls-Royce Defence Aerospace, said:

"The EJ200 is setting new standards for performance and reliability with the RAF and other Typhoon operators and bringing huge improvements in operational capability. This contract enables Rolls-Royce to maintain its commitment to supply our armed forces with the best power systems technology available.

"This will help to sustain highly skilled jobs in Rolls-Royce and our supply chain. Equally importantly, it will help to preserve the development of crucial military engine technology for the UK."

The outstanding reliability of the EJ200 was confirmed in April 2009 with an engine reaching the significant milestone of 1,000 flying hours with the RAF with no requirement for unscheduled maintenance. The RAF fleet of EJ200 engines is supported by Rolls-Royce under an innovative, availability-based contract.

NOTES TO EDITORS

1. 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. In each of these sectors, Rolls-Royce offers value-added long-term service agreements for customers and operators.

2. Annual sales were 9.1 billion in 2008, of which 52 per cent came from

services revenues. The firm and announced order book at the end of 2008

stood at 55.5 billion, providing visibility of future levels of activity.

3. In 2008, Rolls-Royce and its partners invested 885 million on research and

development, two thirds of which had the objective of further improving the

environmental aspects of its products, in particular the reduction of

emissions.

4. Rolls-Royce is the world's number two defence aero engine company with 160

customers in 103 countries. The company offers engines in all key defence market sectors - combat, transport, helicopters, trainers, patrol, maritime and reconnaissance - and is well positioned on a number of new programmes that will deliver products over the next decade and beyond.

5. As partner in Eurojet, Rolls-Royce is engaged in the design, development,

manufacturing and in-service support work for the EJ200, together with

MTU Aero Engines of Germany, Italy's Avio and ITP of Spain.

6. The EJ200-powered Eurofighter Typhoon began operations with the air forces

of Germany, Italy, Spain and the United Kingdom in 2003. Export orders have been secured with Austria and Saudi Arabia. Over 550 EJ200 engines have been delivered and the engine fleet has accumulated over 120,000 engine flying hours to date.

7. Major components for the engine are produced at a number of Rolls-Royce

sites: Ansty, Bristol & Sunderland - High Pressure Turbine components Annesley - compressor blisks Hucknall - combustion components Derby - intermediate casing Bristol - assembly and test of all RAF engines

8. Rolls-Royce plays a key part in supporting EJ200 engines in service,

providing a guaranteed level of installed engine availability to support

the RAF's flying programme.

For further information please contact:

Investor relations:Mark AlflattDirector of Financial CommunicationRolls-Royce plcTel: +44 (0)20 7227 [email protected] relations:Nicky Louth-DaviesDirector of Corporate CommunicationsRolls-Royce plcTel: +44 (0)20 7227 [email protected]

Website:

www.rolls-royce.com

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