27^th September 2021

Rolls-Royce North America selected to power the B-52

Commercial Engine Replacement Program

Rolls-Royce (LSE:RR., ADR:RYCEY) announces Rolls-Royce North America has been selected to provide the powerplant for the B-52 Stratofortress under the Commercial Engine Replacement Program (CERP), further extending a long history of powering the United States Air Force. The decision means the American-made Rolls-Royce F-130 engine will power the B-52 for the next 30 years. The Air Force made the announcement after a vigorous multi-year competition.

The F130 and its commercial family of engines have accumulated more than 27 million engine flight hours. The F130 is the perfect fit for the B-52 with proven reliability, superb life cycle cost, and low integration risk. A variant of the Rolls-Royce engine selected to power the iconic B-52 is already in service with the USAF around the world, powering both the C-37 and E-11 BACN aircraft.

Tom Bell, Chairman & CEO, Rolls-Royce North America, and President - Defence, said, "We are proud to join a truly iconic U.S. Air Force program and provide world-class, American-made engines that will power its missions for the next 30 years. The F130 is a proven, efficient, modern engine that is the perfect fit for the B-52."

The F130 offers outstanding reliability with high mission readiness and low maintenance demands. Once installed, the F130 can stay on wing for the entire planned B-52 lifetime. In addition, the F130 engine will provide vastly greater fuel efficiency, increased range, and reduced tanker aircraft requirements. As importantly, the engine is ready for integration using Rolls-Royce state-of-the-art Digital Engineering tools.

Rolls-Royce will build and test the F130 engines at its Indianapolis, Indiana, facility following the recent completion of a $600 million investment to revitalize the advanced manufacturing campus -- providing some of the most technologically advanced state-of-the-art manufacturing facilities anywhere in the world. The B-52 CERP win creates demand for 650 engines to be produced at the site and will bring 150 new high-tech, high-skilled jobs for the state of Indiana.

Craig McVay, SVP Strategic Campaigns, Rolls-Royce Defence said: "This is a major win for Rolls-Royce. We've been planning and preparing for this outcome and are ready to hit the ground running to prove that we are the best choice for the Air Force and the B-52. Our employees stand prepared to deliver once again for the men and women who protect our freedoms every day."

Rolls-Royce has a long and successful history providing the power to protect for U.S. military customers, having delivered thousands of engines to the U.S. Air Force for more than 70 years. Rolls-Royce powers C-130H, C-130J, CV-22 Osprey and Global Hawk in the USAF fleet - all engines designed and manufactured in Indianapolis.

"We couldn't have reached this outcome on our own," stated Tom. "Rolls-Royce is deeply appreciative of the strong support we have received from partners at the federal, state and city level. Thank you for all you've done to support our bid. This is a truly great day for Rolls-Royce, the State of Indiana, City of Indianapolis and the future of the B-52 program."

For more information about the Rolls-Royce F130 engine for B-52, go to: www.newB-52engines.com

For further information, please contact:

Media

Hannah Wood

External Communications and Marketing Manager, Defence UK and International

Tel +44 (0)7747 203653

hannah.wood@rolls-royce.com

Investors

Isabel Green

Head of Investor Relations, Rolls-Royce plc

Tel +44 (0) 7880 160976

Isabel.Green@Rolls-Royce.com

www.rolls-royce.com

About Rolls-Royce Holdings plc

1.   Rolls-Royce pioneers the power that matters to connect, power and protect society. We have pledged to achieve net zero greenhouse gas emissions in our operations by 2030 (excluding product testing) and joined the UN Race to Zero campaign in 2020, affirming our ambition to play a fundamental role in enabling the sectors in which we operate achieve net zero carbon by 2050.

2.  Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces and navies, and more than 5,000 power and nuclear customers.

3.  Annual underlying revenue was £11.76 billion in 2020 and we invested £1.25 billion on research and development. We also support a global network of 28 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.

4.     Rolls-Royce Holdings plc is publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69)