Rolls-Royce Continues to Win CorporateCare(TM) Customers

GENEVA, May 25, 2004 -- Rolls-Royce's CorporateCare(TM) -- corporate aviation's most comprehensive engine care program -- has booked 76 new orders with customers worldwide worth over $152 million in the past 12 months. Rolls-Royce has more than 315 aircraft under CorporateCare or other flight hour agreements, with contract values exceeding $630 million.

"We are very pleased with the continued strong acceptance of CorporateCare. Rolls-Royce was the first to market Power-by-the-Hour programs with the Viper Engine in the 1960s and CorporateCare was standardized across all of the Rolls-Royce current production engine offerings for business jets in 2002," says Steve Friedrich, Director of Aftermarket Business, Corporate and Regional Aircraft for Rolls-Royce.

"CorporateCare provides the customer with predictable engine maintenance costs, transfers engine risk to Rolls-Royce, reduces acquisition costs and administrative burdens and allows operators to focus on their core business -- flying their aircraft," said Friedrich. "Customers enrolled in CorporateCare benefit from higher aircraft residual values as well as predictability and control of maintenance costs. These benefits are crucial for operators trying to control costs."

  High-value services offered to CorporateCare customers include:

  * The latest generation of Engine Health Monitoring services, recurrent
    publications revision service and the support of Rolls-Royce's global
    Customer Services network;

  * Guaranteed access to lease engines.  Coverage of line replaceable parts
    exchange/replacement and all engine change expenses for scheduled and
    unscheduled events, wherever and whenever they occur; and

  * Complete coverage of expenses associated with qualified shop visits.

Rolls-Royce offers CorporateCare for business jets powered by AE 3007, Tay and BR710 engines. The program is available to support new and in-service engines, and provides operators with improved asset value.

Further details on CorporateCare are available on the Rolls-Royce web site or for the Americas, contact Steve Friedrich 1 703-621-2715; for Rest of World operations, contact Michael Mechler 49 337 086 1739.

Rolls-Royce operates in four global markets -- civil aerospace, defense aerospace, marine and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.

The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. The company now has a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of which 21,000 are in the UK. Forty per cent of its employees are based outside the UK - including 5,000 in the rest of Europe and 8,000 in North America.

The large number of engines in service will generate an assured aftermarket demand for the provision of spare parts and services. The company's strategy is to maximize aftermarket revenues, which have increased by 60 per cent over the past five years due to the development of a comprehensive services capability.

Annual sales total nearly $12 billion, of which 50 per cent currently comes from aftermarket services. The order book stands at more than $34 billion, which, together with aftermarket demand, provides visibility as to future activity levels.