Re Contract

17 November 2010

             ROLLS-ROYCE SECURES FIRST ORDER FOR REVOLUTIONARY NEW             
                         WAVE-PIERCING OFFSHORE VESSEL                         

Rolls-Royce, the global power systems company, has today announced the first
order for its new wave-piercing offshore vessel, from Farstad Shipping. The
visually striking bow design will enable the vessel to pierce through waves in
extreme weather conditions, while maintaining constant speed, reducing fuel
consumption and enhancing safety.

The contract, worth in excess of £12 million to Rolls-Royce, includes vessel
design and a comprehensive integrated power and propulsion system and equipment
package for an advanced platform supply vessel (PSV). The contract also
includes an option for a second vessel of the same specification and value.

Svein Kleven, Rolls-Royce, Chief Design Manager - Ship Technology, said: "Our
wave-piercing designs have been specifically developed for the challenging
offshore conditions in which our customers operate, and will deliver enhanced
safety and performance benefits. We are delighted that Farstad Shipping has
ordered the first of our new generation of offshore vessel designs and look
forward to working with them throughout the development and construction of
this technologically advanced vessel."

Wave-piercing technology is proven technology for high-speed catamarans and
trimarans, and Rolls-Royce is now applying these cutting-edge, innovative
concepts to the demanding offshore market, in which extreme operating
conditions can pose serious challenges to vessel performance and crew safety.

Extensive research and computer aided design methods, verified by tank testing,
have enabled Rolls-Royce to reduce hull resistance substantially through the
development of a wave-piercing hull form, which eliminates slamming and allows
for a smooth ride even in rough weather conditions. The hull pierces through
the water, rather than riding on top of the waves, allowing the vessel to run
continuously at service speeds regardless of the sea state, reducing fuel
consumption and improving crew comfort.

In addition to the new design, Rolls-Royce will supply Azipull propellers,
thrusters, and Bergen diesel engines.

A Rolls-Royce DP2 dynamic positioning system, which uses satellite technology
to accurately position the vessel, is also included. This advanced system
automatically controls the propulsors to hold the vessel in position during
safety-critical operations, such as working close to offshore platforms in
strong winds or heavy seas.

Safety of crew on deck is as always a priority and the contract includes an
ASFA (Automated Sea Fastening System) cargo securing system, giving secure
positioning and securing of containers and pipes.  

The new vessel ordered by Farstad is a UT 754 WP design and will be fitted out
by STX Offshore Norway at its Langsten shipyard. In addition to wave-piercing
designs for these platform supply vessels, Rolls-Royce has developed
wave-piercing hull designs for other vessel types including tugs, deep-sea
anchor handlers, construction vessels and mobile offshore drilling ships.

More than 650 Rolls-Royce designed UT vessels are in service around the world.

Notes 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. 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 3,000 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 £864m 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 £10.1bn in 2009, of which about half came
    from services revenues.  The firm and announced order book stood at £58.4bn
    at 30 June 2010, providing visibility of future levels of activity.
   
 6. The Marine business of Rolls-Royce employs 8,000 people in 34 countries
    with the main manufacturing centres being in the UK, the Nordic countries,
    the United States and increasingly Asia.
   
 7. Rolls-Royce is a world leader in marine solutions, providing products,
    service and expertise to more than 30,000 vessels in the offshore,
    merchant, naval surface and submarine markets. It designs ships and its
    product range includes propulsion systems featuring diesel engines and gas
    turbines, propellers, thrusters and water jets. Rolls-Royce also provides
    manoeuvring and stabilising systems and deck machinery.
   
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

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