Re Agreement

4 December 2008

                   ROLLS-ROYCE AND AREVA TO WORK TOGETHER ON                   
                             UK NUCLEAR PROGRAMMES                             

Rolls-Royce today announced plans to work together with AREVA, the French
nuclear power plant and services provider, on jointly agreed programmes which
will see the first new nuclear reactors built in the UK for over 20 years.
Rolls-Royce and AREVA have agreed a memorandum of understanding (MoU) and will
work together on supply chain development, manufacturing and engineering
services.

George Lowe, President - Civil Nuclear, said: " I am delighted that Rolls-Royce
and AREVA have agreed this important MoU. Rolls-Royce has significant and
growing capabilities in the civil nuclear sector which place us in a strong
position to work on new nuclear programmes as they develop in the UK and across
the world. Working with AREVA on EPR projects is a key element of this
strategy."

Mike O'Brien, Minister at the Department of Energy and Climate Change said:
"This is good news.  It represents a vote of confidence by AREVA in the UK new
nuclear market and a vote of confidence in the UK supply chain.  This is the
welcome face of low carbon energy we'll see more and more over the coming
decades, opening up enormous potential for UK plc at home and globally."

The civil nuclear market is currently worth around £30 billion a year globally
and is expected to grow to £50 billion a year in 15 years time, more than 70%
of which will relate to the build and support of new facilities. It is
estimated that the nuclear programme in the UK will sustain 10-15,000 jobs over
25 years of which 45% will be engineers.

Rolls-Royce established a new business unit earlier this year to address the
global market for civil nuclear power. The Group has the capability to offer a
broad range of civil nuclear `know-how', including work related to the safety,
design and installation of nuclear plant, as well as their operation,
management and support.

Rolls-Royce has the largest nuclear skills base in the UK, with an existing
nuclear certified supply chain of 260 companies, and supports a number of the
key phases of a civil nuclear programme, including providing advice to
governments and operators as well as technical engineering support. Currently,
the Group provides safety critical instrumentation and control in Europe, the
USA and many other international markets, including all 58 operating nuclear
facilities in France.

NOTE TO EDITORS:

 1. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy.
   
 2. Rolls-Royce currently has the largest nuclear skills base of any UK
    company, with around 2,000 employees in the UK, US and France.
   
 3. Rolls-Royce has been part of the UK's nuclear industry for over 50 years,
    working on the design, safety justification, nuclear manufacture and
    in-service support of Royal Navy nuclear reactor plants.
   
 4. AREVA has manufacturing facilities in 43 countries and a sales network in
    more than 100, offering customers technological solutions for CO2-free
    power generation and electricity transmission and distribution.
   
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