Re Contract

02 August 2011

               ROLLS-ROYCE SECURES £20 MILLION ORDER FROM MAJOR                
                             NORWEGIAN SHIP OWNER                              

Rolls-Royce, the global power systems company, has won a £20 million order to
design and supply power and propulsion systems for two UT 776 CD supply vessels
for Island Offshore.

Island Offshore were the first to introduce the versatile UT 776 CD ship, which
is designed to transport essential supplies to and from offshore oil and gas
platforms. These vessels are the ninth and tenth ordered by the operator to
date.

In addition to the ship design, the order includes a fully integrated and
highly efficient diesel-electric power and propulsion system featuring four
Rolls-Royce Bergen engines to power two Azipull thrusters. The ships will also
feature a dynamic positioning system, which uses satellite technology to
maintain the ship's position, a comprehensive range of deck machinery and a
bulk handling system for the safe loading of cargo.

Jorn Heltne, Rolls-Royce, Director - Offshore Ship Design, said: "We are
delighted that Island Offshore has again turned to Rolls-Royce to provide an
integrated design, power and propulsion solution for their platform supply
vessels, particularly as the decision is based on the successful operation of
vessels in their existing fleet."

The two UT 776 CD vessels will be built by STX OSV at its Brevik shipyard in
Norway, with delivery scheduled for 2013.

Notes to Editors:

 1. Rolls-Royce is a world-leading provider of power systems and services for
    use on land, at sea and in the air, and has established a strong position
    in global markets - civil aerospace, defence aerospace, marine and energy.
   
 2. As a result of this strategy, Rolls-Royce has a broad customer base
    comprising more than 500 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,500 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Annual underlying revenues were over £10.8 billion in 2010, of which more
    than half came from the provision of services. The firm and announced order
    book stood at £61.4 billion at 30 June 2011, providing visibility of future
    levels of activity.
   
 4. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing
    and service facilities in over 50 countries. Over 11,000 of these employees
    are engineers.
   
 5. In 2010, Rolls-Royce invested £923 million on research and development, 
    two thirds of which had the objective of further improving the environmental
    performance of its products, in particular reducing emissions.
   
 6. Rolls-Royce supports a global network of 28 University Technology Centres,
    which connect the company's engineers with the forefront of scientific
    research.
   
 7. The Group has a strong commitment to apprentice and graduate recruitment
    and to further developing employee skills.
   
 8. The Marine business of Rolls-Royce employs 9,000 people in 34 countries
    with the main manufacturing centres being in the UK, the Nordic countries,
    the United States and increasingly Asia.
   
 9. 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
Director of External Communications
Rolls-Royce Holdings plc
Tel: [phone]
[e-mail]

www.rolls-royce.com