Re Contract

21 March, 2005

        ROLLS-ROYCE WINS £137 MILLION SUPPORT CONTRACT FOR FOUR NAVIES         

Rolls-Royce has won a £137 million long-term service and support contract for
gas turbines which power 27 ships in service with the Royal Navy, and French,
Belgian and Royal Netherlands navies.

The company will support Olympus and Tyne gas turbines for the next 12 years,
when the ships are due to go out of service. The contract was awarded by the UK
Ministry of Defence on behalf of all four navies.

The Total Care package will see Rolls-Royce take responsibility for ensuring
power being available to keep ships at sea, rather than entering into
individual service and overhaul contracts for each gas turbine.

Saul Lanyado, Rolls-Royce President - Marine, said: "This long-term support
contract will give all four navies guaranteed levels of service. It enables
them to plan their budgets better, and reduce overall cost."

The deal covers:

Three Royal Navy carriers HMS Ark Royal, HMS Illustrious and HMS Invincible,
each powered by four Olympus gas turbines.

Nine Royal Navy Type 42 destroyers (two Olympus and two Tyne each).

Four Type 22 frigates (two Tyne and two Spey each, the Spey being covered by a
separate agreement).

Seven French Navy Georges Leygues-class destroyers (two Olympus each).

Three Belgian Navy Wielingen-class frigates (one Olympus each).

One Royal Netherlands L-class frigate (two Olympus and two Tyne).

In December, Rolls-Royce signed a 20-year contract with the Chilean Navy to
provide repair services and technical support for five of its ships, powered by
Olympus, Tyne and Spey gas turbines.

Rolls-Royce already has long-term support contracts with the UK MoD which cover
propulsion support for nuclear submarines, and the operation of the Vulcan
naval reactor test establishment at Dounreay, Scotland.

For further information please contact

Bill O'Sullivan

Communications Manager

Rolls-Royce

Tel [phone]

Fax [phone]

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Web www.rolls-royce.com