Re Contract

14 March, 2008

              ROLLS-ROYCE WINS BREAKTHROUGH CONTRACT FOR CHINA'S               
                        OFFSHORE SUPPORT VESSEL MARKET                         

Rolls-Royce has won a £58 million contract to deliver design and equipment
systems for two of the world's most advanced offshore support vessels - a first
for the Chinese market.

The vessels have been ordered by China Oilfield Services Ltd (COSL) and will
operate in support of oil and gas exploration and production.

Anders Almestad, President - Offshore, from the Rolls-Royce marine business,
said: "This contract is a major breakthrough for Rolls-Royce integrated systems
for the Chinese offshore market.

"The integrated solution designed by Rolls-Royce for COSL is the first of its
kind in the growing Chinese offshore market. We believe that our products and
services will help COSL improve their deepwater capabilities."

The Rolls-Royce designed UT 788 CD ships have many capabilities including the
ability to operate in very deep water, towing, and supplying and supporting oil
and gas rigs. They can even assist in underwater construction projects.

Rolls-Royce has a growing presence in China's marine market, which is the
biggest in the world for commercial merchant ships. Rolls-Royce has been
increasing its marine business in China annually over recent years and opened a
new factory in Shanghai in 2005. Together with an existing facility in South
Korea, the new factory forms a production hub for North-East Asia.

In 2007, Rolls-Royce achieved a record for marine orders in China, with
contracts for more than 700 ship sets of steering gear and 300 ship sets of
deck machinery, including a $42 million contract with Sinopacific.

About Rolls-Royce

 1. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, operates in four global markets - civil
    aerospace, defence aerospace, marine and energy.
   
 2. Rolls-Royce has been present in China for over 45 years.  In addition to
    Marine, the Civil Aerospace and Energy businesses have a strong presence in
    China.  The Rolls-Royce combined order book for Asia and the Middle East in
    2007 was equal to the entire global order book four years earlier.
   
 3. Rolls-Royce business in China has grown rapidly in recent years. In 2007,
    the value of Rolls-Royce purchasing in China across all its businesses exceeded
    US$200m, and is set to grow substantially from that level.

 4. Rolls-Royce is the leading supplier of engines to China's wide body aircraft
    fleet, with over 100 Rolls-Royce powered wide body aircraft in service or on
    order.  Including Hong Kong, Rolls-Royce and its associate company
    International Aero Engines have over 400 aircraft in service or on firm order.
    Rolls-Royce compressors pump gas along the West-East Pipeline, one of China's
    most important infrastructure projects, and have given 200,000 hours of trouble
    free operation. Rolls-Royce also has a successful turbine component joint
    venture in Xian; and is growing its component and materials purchasing in
    China.  

 5. Rolls-Royce also has a long history of co-operation with China on training
    programmes, and has a training centre in Tianjin, jointly owned and operated
    with the Civil Aviation Administration of China (CAAC).

 6. The marine business of Rolls-Royce, focuses on power, propulsion and motion
    control solutions and serves over 2,000 customers. Its equipment is
    installed on 20,000 commercial and naval vessels operating around the
    world. The business employs 7,400 people in 34 countries with main
    manufacturing centres in the UK, the Nordic countries, the United States
    and, increasingly, Asia.
   
 7. The UT 788s will be fitted with a hybrid propulsion system to cut fuel
    consumption and reduce emissions. Only the engines necessary for work
    operation will be run, and then only at an efficient rating.
   
About China Oilfield Services Limited

 1. China Oilfield Services Limited is the leading integrated oilfield services
    provider in the Chinese offshore market. With over 30 years of experience
    in marine operations, COSL's services cover each phase of offshore oil and
    gas exploration, development and production. COSL was successfully listed
    on the Main Board of the Stock Exchange of Hong Kong Limited in 2002.
   
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For further information:

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