Re Contract

ROLLS-ROYCE RECEIVES $71 MILLION CONTRACT FOR                 
                     ADDITIONAL BRAZILIAN OFFSHORE UNITS                     

Four new Rolls-Royce RB211-powered generating sets have been ordered by Charter
Development LLC-CDC to be installed in the P-53 Floating Production Unit (FPU)
in Brazil. This unit, once completed, will be chartered to Petrobras, the
Brazilian national oil company, and located offshore Brazil.

Together with a Long Term Service Agreement (LTSA) the total value of the
contract is over US$71 million.

The four dual fuel RB211 units are for the P-53 Marlin Leste Floating
Production Unit (FPU), which will be situated in the Marlim Sul field, located
off the coast of Rio de Janeiro in the Campos Basin. This is Brazil's most
abundant oil production area, accounting for over 80 percent of the country's
total oil output.

Rolls-Royce has now received orders for 23 RB211 gas turbine generator sets for
Petrobras offshore projects, totalling over US$280 million, over the past four
and a half years.

Tom Curley, President of the energy business of Rolls-Royce said, "We are very
pleased to be selected to provide the power generation packages for another
offshore installation in Brazil."

"We now have the first eight of our RB211 generating sets operating
successfully for Petrobras and this contract with CDC, together with other
units already on order, will provide power for a number of critical
installations offshore Brazil. We look forward to continuing our already-strong
relationship with this very important customer."

The order for P-53 is for two modules, each containing two RB211 6562 dual fuel
power generating sets with waste heat recovery systems. The modules will
provide electrical power for the FPU, which will eventually connect to 27
different wellheads, 18 producing oil and gas and 9 for water injection needed
to keep pressure in the reservoir.

The P-53 generating sets are being packaged at the Rolls-Royce facility in
Liverpool, England with deliveries scheduled in the fourth quarter, 2005 and
the first quarter of 2006.

NOTES TO EDITORS

 1. The P-53 FPU will have a production capacity of 180,000 barrels a day of
    crude and six million cubic meters a day of natural gas.
   
 2. The orders for Petrobras offshore facilities started for Rolls-Royce in
    January of 2001 when contracts were received for eight power generation
    units for the P-43 Barracuda and P-48 Caratinga Floating Production,
    Storage and Offloading (FPSO) vessels. In December 2003, Rolls-Royce was
    awarded orders for four additional RB211 power generation packages for the
    P-52 FPU.
   
 3. In October last year, further orders were placed for seven RB211 genset
    packages, for the P-51 Marlim Sul FPU, and for a fixed repumping platform,
    PRA-1.
   
 4. Rolls-Royce has a fleet of over 530 industrial gas turbines operating
    offshore in 32 countries. The first units entered service offshore
    Venezuela in 1969, offshore USA in 1970 and the North Sea in 1972.
   
 5. Total operating hours of Rolls-Royce industrial gas turbines worldwide is
    over 142 million.
   
For more information, please contact:

Martin Brodie
Head of Communications - Asia and Middle East
Rolls-Royce
Tel: [phone]
Email: [e-mail]

Web www.rolls-royce.com

Richard Catling
Crest Communications (PR) Limited
Tel: [phone]
Email: [e-mail]

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