Re Contract

18 June 2012

                  Rolls-Royce secures £1billion contract for
                       UK's future submarine programme                        

Rolls-Royce, the global power systems company, has signed a contract worth in
excess of £1billion with the Ministry of Defence (MoD) to deliver reactor cores
for the UK's nuclear-powered submarine fleet.

This contract includes regeneration of the current Rolls-Royce submarine
reactor core manufacturing facility in Derby. The Group will introduce the
latest technology and manufacturing techniques to deliver increased
efficiencies committed by the MoD and industry as part of the Strategic Defence
and Security Review.

Jason Smith, Rolls-Royce President Submarines and Chief Operating Officer -
Nuclear said: "This is excellent news that demonstrates the high level of trust
the MoD has in both our technology and the expertise of our highly skilled
workforce. This new facility will deploy advanced manufacturing techniques to
enhance our world leading nuclear manufacturing capability."

Under this contract Rolls-Royce will continue to maintain and operate its
existing reactor core manufacturing facility in Derby, UK. In parallel the
Group will complete a phased rebuild to provide a leading-edge manufacturing
facility with the highest standards of safety to support future MoD programme
needs.

Rolls-Royce is the UK's lead company, on behalf of the MoD, in nuclear
submarine reactor systems and support services; incorporating design,
manufacture, procurement and operation. 

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 revenues were £11.3 billion in 2011, of which more than
half came from the provision of services. The firm and announced order book
stood at £62.2 billion at 31 December 2011, 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.

8. The Group has been the sole Technical Authority for the UK Nuclear Steam
Raising Plant, which has powered the whole of the UK's Royal Navy submarine
fleet for 50 years.

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