Re Agreement

19 January 2011

   ROLLS-ROYCE TO SUPPORT DELIVERY OF WESTINGHOUSE AP1000â„¢ NUCLEAR REACTOR 
                                 IN THE UK

Rolls-Royce today signed an agreement to collaborate with the Nuclear Power
Delivery UK (NPD) consortium in its plans to deploy the Westinghouse AP1000â„¢
nuclear reactor in the UK.

Under the terms of the agreement, Rolls-Royce will support NPD in the
development of proposals for engineering, manufacture and supply of mission
critical components for the heart of the nuclear reactor. Rolls-Royce will also
explore the provision of nuclear engineering, technical support and supply
chain management expertise to the consortium.

Lawrie Haynes, Rolls-Royce President - Nuclear said: "I am delighted that we
are able to work with NPD to explore the supply of mission critical nuclear
reactor components and engineering services.

"Today's agreement builds on the strong relationship that we have developed
with Westinghouse and the work we have successfully completed for them. We can
now move forward in support of NPD, while maintaining the strategic
relationship we have developed with Westinghouse.

"Deploying Rolls-Royce's unique combination of nuclear skills and capabilities
will enable our customers to deliver assured programmes and help them to
succeed in their chosen markets."

Rita Bowser, Managing Director, Nuclear Power Deliver UK said: "We are
delighted to be announcing this agreement with Rolls-Royce - one of the biggest
names in the nuclear industry supply chain - building on the work which
Westinghouse and Rolls-Royce carried out under the earlier agreement ".

Rolls-Royce has a significant nuclear skills base, with a large existing
nuclear certified supply chain, and supports a number of key phases of the
nuclear programme, including providing advice to governments and operators,
supply chain management expertise, as well as manufacturing and technical
engineering support. The Group also provides safety-critical instrumentation
and controls in Europe, USA and many other international markets, including all
58 operating nuclear power facilities in France.

Notes to Editor

 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. As a result of this strategy, Rolls-Royce today has a broad customer base
    comprising more than 600 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,000 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Rolls-Royce employs 39,000 skilled people in offices, manufacturing and
    service facilities in 50 countries. The Group has a strong commitment to
    apprentice and graduate recruitment, and to further developing employee
    skills.
   
 4. In 2009, Rolls-Royce invested £864 million on research and development, 
    two thirds of which had the objective of further improving the environmental
    aspects of its products, in particular the reduction of emissions.
   
 5. Annual underlying revenues were £10.1 billion in 2009, of which about half
    came from services revenues. The firm and announced order book stood at 
    £58.4 billion at 30 June 2010, providing visibility of future levels of
    activity.
   
Rolls-Royce Nuclear:

 1. Rolls-Royce has a large and highly experienced nuclear skills base with
    approximately 2,600 employees in the UK, France, US and Canada.
   
 2. Rolls-Royce provides nuclear power utility vendors and operators with
    integrated, long-term solutions and support services spanning the whole
    reactor lifecycle, from concept design through to obsolescence management
    and plant life extension. With nuclear expertise including component
    manufacturing, licensing, project and supply chain management as well as
    world-class engineering, the company has been a key player in the industry
    for over 50 years.
   
 3. As the lead industrial partner, Rolls-Royce is supporting the development
    of the UK's Nuclear Advanced Manufacturing Centre that will bring together
    an industrial consortium of around 30 companies from the UK nuclear supply
    chain. University partners will lead key research themes.
   
Nuclear Power Delivery UK:

 1. NPD UK is a team comprising Westinghouse Electric Company, The Shaw Group,
    Laing O'Rourke and Toshiba. For more information visit
    www.nuclearpowerdeliveryuk.co.uk
   
For further information, please contact:

Investor relations:
Mark Alflatt
Director of Financial Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]

Media relations:
Josh Rosenstock
Head of Corporate Communications
Rolls-Royce plc
Tel: [phone]
[e-mail]

www.rolls-royce.com