Re Contract

3 October 2011

         ROLLS-ROYCE WINS FIRST ORDER FOR AWARD-WINNING ENVIRONSHIP

Rolls-Royce, the global power systems company, has received its first order for
vessels based on the Group's award-winning, highly efficient, Environship
concept. Rolls-Royce will design and provide integrated power and propulsion
systems for two technologically advanced cargo vessels, which have been
purchased by Norwegian transportation company, Nor Lines AS.

These highly efficient ships incorporate a striking wave piercing bow, world
leading gas powered engines and an innovative Promas propulsion system, which
combined, significantly improve the overall performance of the vessel 
- increasing fuel efficiency by up to 18 per cent. It also provides numerous
environmental benefits, including the virtual elimination of SOx and reduction
of CO2 emissions by more than 40 per cent compared to similar conventional
vessels.

The two Rolls-Royce NVC 405 cargo vessels will be built at the Tsuji Heavy
Industries ship yard in Jiangsu, China. The vessels will enter service from
October 2013, operating along the West Coast of Norway.

Toralf Ekrheim, Nor Lines, CEO said: "We have had a fruitful cooperation with
Rolls-Royce for more than two years, developing vessels that are tailor made
for our trade and incorporate the latest award-winning energy saving and
emission reducing features."

Oddbjørn Eliassen, Rolls-Royce, President - Merchant said: "The Environship
concept is a transformational development for merchant shipping, offering
significant reductions in fuel burn and emissions, as well as enhanced
performance at sea.

"This order demonstrates that customers are embracing more environmentally
friendly ship designs and technology. Rolls-Royce is best placed to provide
ship designs and integrated power and propulsion systems that deliver tangible
improvements in operational efficiency and ship performance, along with a
significant reduction in environmental impact."

The contract is for two ships, and includes options to build an additional 
two vessels of the same design. Rolls-Royce is already using the Environship
concept to develop a wide range of other efficient ship designs, including
passenger ferries, chemical tankers, gas tankers, bulk carriers, and
superyachts.

Key facts about the Environship:

  * The Rolls-Royce Environship concept, received the prestigious Next
    Generation Ship Award at this year's NorShipping event in Oslo, Norway.
   
  * The Rolls-Royce Bergen B-Series lean burn gas engines, as used in the
    Environship, emit around 17 per cent less CO2 (per unit of power) than a
    diesel engine.
   
  * The use of gas fuelled engines means that Nitrogen Oxide (NOx) emissions
    are reduced by about 90 per cent while Sulphur Oxide (SOx) emissions are
    negligible.
   
  * These emissions are already within the limits of IMO (International
    Maritime Organisation) Tier III environmental legislation, due to come into
    force in 2016.
   
  * The Rolls-Royce Promas propulsion system is an integrated rudder and
    propeller, which alone improves efficiency of the vessel by 5 to 8 per cent.
   
  * The new innovative bow shape and hull form, designed by Rolls-Royce, also
    reduce resistance by up to 8 per cent, therefore reducing fuel burn and
    emissions further.
   
  * The vertical bow shape enables the vessel to maintain speed even in rough
    seas enabling operators to achieve demanding shipping schedules without the
    need to burn additional fuel to make up lost time.
   
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 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 35 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 Holdings plc
Tel: [phone]
E: [e-mail]

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

www.Rolls-Royce.com