Re Contract

26 June 2012

                     ROLLS-ROYCE AWARDED POWER GENERATION                      
                         CONTRACT BY LUKOIL IN RUSSIA                          

Rolls-Royce, the global power systems company, has been awarded a contract to
supply two industrial Trent 60 gas turbines to power, Russian oil company,
LUKOIL's Stavrolen Power Plant in Budennovsk, Russia.

The contract was awarded by Russian contracting company Synergetic Projects
LLC, general contractor of the Stavrolen Power Plant.

Denis Dolgov, Vice President - Power Business, LUKOIL said: "Rolls-Royce Trent
60 gas turbines provide a reliable, efficient and commercially competitive fit
to meet LUKOIL's requirements. The units will enable the Stavrolen Power Plant
to reach power capacity in compliance with our commitments under the Power
Supply Agreement signed with the Russian Power Market."

Tom Sacco, Rolls-Royce, EVP Power Generation - Energy said: "I am delighted
that LUKOIL has selected Rolls-Royce technology to support production expansion
at its Stavrolen petrochemicals plant. The proven efficiency and superior fuel
consumption of the Trent 60 gas turbine will provide the Russian Power Market
with a dependable supply of electricity."

Each Trent 60 unit will produce 58.5 megawatts of power. Exhaust heat from the
engines will be recovered to drive a separate steam turbine, providing
additional power to Russian Electrical Grid and high pressure steam to support
industrial processes of Stavrolen Polyethylene Plant. Each Trent 60 unit will
feature Rolls-Royce low emissions technology to minimise environmental impact.

Today's announcement follows a contract awarded in 2011 to supply LUKOIL with
five Rolls-Royce Bergen diesel engines, each producing 5.2 megawatts to provide
power for pumping, refining and related services at the LUKOIL diamond mine in
the Arkhangelsk region of Russia.

The equipment will be manufactured and packaged at the Rolls-Royce facilities
in Montreal, Quebec, Canada and Mount Vernon, Ohio, U.S., ready for shipment
from 3Q 2012 and entry into commercial service planned for 4Q 2013.

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.
   
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