Rolls-Royce North America Supports US Olympic Team

CHANTILLY, Va., May 4, 2004 -- Rolls-Royce North America today announced its first ever support for the US Olympic Team. The company will participate in the VIIIth Olympic Dinner, the national celebration of America's participation in the Olympic Games hosted by the US Olympic Committee (USOC). The Dinner takes place tonight in Washington, DC.

"We're delighted to support the US Olympic Team," said James M. Guyette, President & CEO, Rolls-Royce North America. "These competitors are America's finest -- the Rolls-Royce of American athletes -- and we want to help honor their accomplishments, commitment and spirit. As a company growing in the US, we also want to support our national team."

The USOC is responsible for training, entering and underwriting all expenses for US teams participating in the Olympic Games. Unlike its international counterparts, the USOC receives no funding from its government, relying instead on support from corporate America and private citizens.

"Supporting the US Team is especially meaningful for us this year," continued Guyette. "A century ago -- on this very day in May, 1904 -- Charles Rolls and Henry Royce first met and partnered. We've been in the US for 98 of our 100 years and today our commitment to the US is stronger than ever. We plan to be here for at least 100 more."

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 percent 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 percent over the past five years due to the development of a comprehensive services capability.

Annual sales total nearly $9 billion, of which 50 percent currently comes from aftermarket services. The order book stands at more than $27 billion, which, together with aftermarket demand, provides visibility as to future activity levels.