Re Contract

17 January 2011

              ROLLS-ROYCE TO POWER TEN LITTORAL COMBAT SHIPS FOR               
                                 THE U.S. NAVY                                 

Rolls-Royce, the global power systems company, will supply gas turbines and
waterjets for ten of the U.S. Navy's Littoral Combat Ships (LCS) - the Group's
largest ever marine naval surface ship contract.

Designed to operate in combat zones close to the shore (littoral waters), each
LCS will be equipped with two Rolls-Royce MT30 gas turbines powering four large
waterjets, enabling the vessels to reach speeds in excess of 40 knots.  At 36
megawatts, the MT30 is the world's most powerful marine gas turbine.  Combining
this power with Rolls-Royce waterjets makes the LCS highly manoeuvrable, able
to operate in shallow waters and to stop and accelerate quickly.

Rolls-Royce is already supplying propulsion equipment on the first two Lockheed
Martin vessels and today's announcement extends this with one firm order and
options for a further nine ships of the same design.

Andrew Marsh, Rolls-Royce, President - Naval said: "We are delighted that the
Lockheed Martin design has been selected for an additional ten vessels in the
LCS programme. We have worked closely with Lockheed Martin and other partners
throughout the design, build and sea trials of the first vessel, USS Freedom,
and are making good progress on the second ship, Fort Worth, which is more than
80 percent complete and remains on cost and on schedule."

"The Rolls-Royce equipment, including the MT30 gas turbines and waterjets,
combine to give an effective and efficient propulsion system perfectly suited
for these innovative, highly-manoeuvrable, state-of-the-art ships."

The MT30 is derived from Rolls-Royce aero engine technology, building on over
45 million hours of operating experience and reliability.  It also has the
highest power density of any marine gas turbine - a key factor in naval
propulsion where delivering a high power output in a compact space is
essential.  The MT30 is the latest development of Rolls-Royce marine gas
turbines, and has also been selected for the UK Royal Navy's new Queen
Elizabeth class aircraft carriers and the U.S. Navy's DDG-1000 Zumwalt class
destroyer programme.

The waterjets are among the largest produced by Rolls-Royce and can pump water
at a combined rate of 25,000 gallons per second - enough to fill an Olympic
style swimming pool in 25 seconds.

In addition to gas turbines and waterjets, a significant range of Rolls-Royce
equipment is specified in the Lockheed Martin design, including shaftlines,
bearings and propulsion system software.

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 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.
   
 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
    maneuvering and stabilising systems and deck machinery. Around 30 per cent
    of Marine turnover is derived from service support activity, with a global
    network of sales and service offices in 34 countries. Rolls-Royce equipment
    is in service with more than 70 navies.
   
 8. Providing power from 3MW to 36MW, Rolls-Royce has one of the broadest
    ranges of marine gas turbines available in the world. Rolls-Royce has
    delivered more different engine models to more different navies of the
    world than any engine manufacturer.
   
For further information please contact

Craig Taylor

Communications Business Partner

Rolls-Royce plc

Tel [phone]

e-mail [e-mail]

Mia Walton

Senior Vice President

Corporate Communications

Rolls-Royce North America Inc.

Tel [phone]

e-mail [e-mail]

Web www.rolls-royce.com

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