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Rolls-Royce Awards EDS $2.1 Billion IT Contract

6 July 2000

Rolls-Royce Awards EDS $2.1 Billion IT Contract

    LONDON - Rolls-Royce plc, the aerospace, defence, marine and energy company, 
announced today that it has agreed to extend its successful technology, services 
and consulting relationship with EDS.

    Rolls-Royce has awarded EDS a $2.1 billion contract to provide global
information technology services and business solutions, covering e-business,
consulting and supply chain management.  The new agreement, which runs until
2012, builds on an existing business relationship which began in 1996.

    "EDS has become our strategic partner in building a truly global,
integrated company," said Chris Hole, Director of Procurement, Rolls-Royce
plc. "This agreement will bring new levels of value and benefit to
Rolls-Royce."

    The focus for the initial phase of the new agreement between Rolls-Royce
and EDS will be on enabling business integration and work-share collaboration.
This will include e-business solutions, with plans currently for three portals
covering the supply chain, design collaboration and corporate information;
consulting-led business initiatives for the global supply chain; innovative
Application Service Provision offerings, and further improvements in IT
services.

    EDS already provides IT services to Rolls-Royce across the UK and North
America.  In addition, EDS is responsible for Rolls-Royce IT infrastructure,
network, systems and applications, and end-user support.

    Notes:

    Rolls-Royce plc is a global company providing power on land, sea and in
the air.  The company has established leading positions in civil aerospace,
defence, marine and energy markets. Its core as 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 water jet propulsion systems.