Interim management statement

Thursday, 30 October 2008

Rolls-Royce Group plc, the global power systems company, is today issuing its Interim Management Statement for the period 30 June to 29 October 2008.

Trading activity across all four of the Group’s businesses has been good and the order book has continued to grow with a further £5 billion of new orders received since 30 June.

Current trading remains in line with market expectations. The Group expects to increase underlying revenue and profit and generate a positive cash flow in 2008.

The Group has a strong financial position with positive net cash. The UK pension schemes were restructured in 2007 removing significant exposures to equity values, interest rates and inflation. Steps have already been taken to reduce operating costs and further action is being taken across all its businesses.

Sir John Rose, Chief Executive, said: “The good progress we have made over this period demonstrates the benefits of our consistent strategy.

“Clearly, the global economy has deteriorated rapidly but it is too early to determine the precise effect this will have on our markets.

“However, the breadth of our business and product portfolio, our access to a wide range of global markets, our growing installed base, the strength of our balance sheet and our ability to manage costs effectively mean that we are well positioned to deal with the challenging economic conditions.”

The Group will report its preliminary results for the 12-month period ending 31 December 2008 on 12 February 2009.

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