Re Contract

4 February 2010

                    ROLLS-ROYCE WINS £20M CONTRACT TO POWER                    
                            FUEL EFFICIENT FERRIES                             

Rolls-Royce, the global power systems company, has signed a £20 million
contract to supply engines and propulsion equipment for four gas-fuelled
ferries to be built for the Norwegian operator Torghatten Nord AS.

The vessels will be the first in the world to feature the Rolls-Royce Hybrid
Shaft Generator (HSG), which produces electrical power with reduced fuel
consumption and emissions. They will also include market leading lean-burn
Rolls-Royce Bergen gas engines and the company's innovative integrated
propeller and rudder system (Promas) that reduces drag and increases thrust.

These technologies will combine to offer an unrivalled environmental
performance, including a 40% reduction in CO2 emissions, compared to
conventional vessels.

Oddbjørn Eliassen, Rolls-Royce, President - Merchant said: "Rolls-Royce is a
global leader in the supply of energy efficient technologies which enable ship
operators to address the environmental challenges they face. These ferries will
combine a range of cutting edge technologies to deliver significant
improvements in fuel efficiency and reductions in emissions."

HSG is an advanced electrical system that enables a step-change in ship
efficiency by varying engine and propeller speed to reduce fuel comsumption and
consequently lower emissions. Ships' engines traditionally operate at a fixed
speed when conventional shaft generators are in use, but HSG allows shaft speed
to be reduced, while maintaining a constant frequency for the electrical supply
throughout the ship.

These ferries will serve two routes across Vestfjorden in Lofoten in the north
of Norway, a stretch of water known for its harsh conditions. They will be
built by the Remontowa Shipyard in Gdansk, Poland for delivery in the 
second half of 2012.

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. Rolls-Royce employs over 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.

3. 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.

4. 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 
   £58.4billion at 30 June 2010, providing visibility of future levels of activity.

5. 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.

6. 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 power and propulsion systems featuring diesel engines and gas
   turbines, propellers, thrusters and water jets. Rolls-Royce also provides
   manoeuvring and stabilising systems and deck machinery.

7. Liquefied natural gas (LNG) is set to become an important marine fuel of the
   future and Rolls-Royce is a leading supplier of gas-fuelled propulsion systems
   including the Bergen lean-burn engines, gas storage and handling equipment.

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