Re Contract

22 October 2012

              ROLLS-ROYCE TO POWER U.S. NAVY'S NEW SHIP-TO-SHORE               
                          CONNECTOR HOVERCRAFT FLEET                           

Rolls-Royce, the global power systems company, has won a contract to power the
U.S. Navy's future fleet of hovercrafts, known as the Ship-to-Shore Connector
(SSC).

The Group will work with Textron Marine & Land Systems, an operating unit of
Textron Systems, a Textron Inc. company, which has been selected to build the
initial development craft, in a program that could extend to 73 craft. The SSC
will replace the Navy's current fleet of Landing Craft Air Cushion (LCAC)
hovercraft over the next 20 years.The new hovercraft will be used to rapidly
deploy personnel and vehicles between U.S. Navy ships and the shore.

Each SSC will use multiple cutting edge Rolls-Royce MT7 gas turbines, derived
from the highly successful AE1107 engine, which powers the US Marine Corps'
V-22 Osprey tilt-rotor aircraft.

Andrew Marsh, Rolls-Royce, President - Naval said: "This is an exciting and
significant project for Rolls-Royce to be involved with. Our gas turbine
technology will increase the power of the hovercraft by 25 per cent, compared
to the previous generation, enabling each craft to transport up to 74 tons of
cargo at speeds over 35 knots. At the same time our engines will improve fuel
efficiency by 11 per cent. We look forward to working with Textron and the Navy
during the development and entry into service of these highly versatile craft."

On each hovercraft, the MT7 gas turbines will be connected to a sophisticated
gearbox system providing both propulsion and lift. Rolls-Royce will also design
and manufacture the air intake and exhaust systems.

The MT7 combines modern turbine materials and technology to provide a
state-of-the-art power system suited to a range of naval applications such as
main propulsion and power generation. It leverages the robust performance and
reliability of the Rolls-Royce AE engine family which has accumulated more than
45 million operating hours.

The MT7 is the latest Rolls-Royce gas turbine to be selected to power a major
U.S. Navy program, and follows the MT30 which is already powering the Freedom
class Littoral Combat Ships and will provide electrical power for the DDG-1000
Zumwalt class destroyers.

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 4,000 marine customers,
including 70 navies, and energy customers in more than 80 countries.

3. Annual underlying revenue was £11.3 billion in 2011, of which more than half
came from the provision of services. The firm and announced order book stood at
£60.1 billion at 30 June 2012, providing visibility of future levels of
activity.

4. Rolls-Royce employs over 40,000 people in offices, manufacturing and service
facilities in over 50 countries. Over 11,000 of these employees are engineers.

5. In 2011, Rolls-Royce invested £908 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.

For further information, please contact:

Investors:  
                                                                 
Simon Goodson                                                       
Director - Investor Relations                                     
Rolls-Royce plc 
Tel: [phone]                                          
[e-mail]                              

Media: 

Josh Rosenstock 
Director of External Communications 
Rolls-Royce plc      
Tel: [phone]        
[e-mail]                                      

www.Rolls-Royce.com