Re Contract

17 December, 2012

             ROLLS-ROYCE WINS CONTRACT TO SUPPLY WATERJETS FOR THE             
                  FINNISH NAVY´S NEW HIGH SPEED LANDING CRAFT                  

Rolls-Royce, the global power systems company, has won a contract to supply
water jets to power Marine Alutech Oy Ab's new Watercatâ„¢ M18 AMC high speed
troop transport craft, that are currently under construction for the Finnish
Navy.

The boats, classified as U700, are designed and built by the Marine Alutech
shipyard in Teijo, Finland, which specialises in patrol and military vessels.

The contract, for 12 craft, will involve the supply of Rolls-Royce 40A3 water
jets (two per craft), and a state-of-art control system that will enhance the
manoeuvring capabilities of the vessels.

Andrew Marsh, Rolls-Royce, President - Naval, said: "This latest contract
reaffirms our leading position in the supply of water jet technology for a
variety of naval craft, where speed, manoeuvrability and the capability to
operate in shallow waters are crucial customer requirements. We're delighted to
be working with Marine Alutech and building on our excellent relationship with
the Finnish Navy."

The 19 metre long vessels will be able to reach speeds in excess of 40 knots
and are suitable for a range of duties including troop transportation, medical
and evacuation tasks, and landing operations. They are designed to operate in
archipelago, coastal and offshore conditions, and will enter service from the
middle of 2014.

Water jets enable operation in shallow waters and offer higher speeds and
better manoeuvrability than conventional propellers. These features are
particularly relevant for the shallow coastlines around Finland and the demands
set for landing operations.

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