Re Contract

14 August, 2006

         ROLLS-ROYCE WINS NEW ORDER FOR NEXT GENERATION U.S. NAVY SHIP         

Rolls-Royce has won another significant order for the largest naval gas
turbines in the world to power a next generation US Navy warship.

Two Rolls-Royce MT30 gas turbines will power the second Lockheed
Martin-designed Littoral Combat Ship (LCS). Another set of the same turbines
has already been ordered and installed in Lockheed Martin's first LCS, Freedom
(LCS 1).

The latest contract continues the MT30's success in the United States. It was
also chosen to power the Northrop Grumman DD(X) destroyer Integrated Power
System Engineering Development Model at a U.S. Navy research site in
Philadelphia.

The gas turbines for the second Lockheed Martin-designed LCS will be delivered
to the Bollinger shipyard in Lockport, Louisiana, in early 2007.

Rolls-Royce is also supplying four Kamewa waterjets to the ship to maximise
performance and manoeuvrability. These same waterjets have also been supplied
to Freedom. The company is also providing bearings and shafting to both ships.

Patrick Marolda, Rolls-Royce President - Naval, said: "This latest contract
reflects Lockheed Martin's belief in the advantages of the MT30 gas turbine,
our ability to deliver as a company, and Rolls-Royce's continuous commitment to
support the U.S. Navy."

NOTES TO EDITORS

1. LCS is being designed and built to improve the U.S. Navy's operational
capability in the littorals, or coastal waters.

2. General Dynamics will also construct up to two ships for the same class.

3. The MT30 has 80 per cent commonality with the Trent 800 aero engine which
has achieved more than eight million flying hours since entering service in
1996.

 4. Freedom is due to be launched this Autumn and delivered to the U.S. Navy in
    2007.
   
5. Rolls-Royce is a world-leader in the research, development and manufacture
of high-power waterjets. Several hundred are used in North America by
commercial and naval vessels including the X-Craft, the U.S. Navy's
experimental high-speed catamaran and the 11-metre Ridged Inflatable Boat used
extensively by Special Operations Command.

For further information please contact:

Bill O'Sullivan

Senior Communications Manager

Rolls-Royce plc

Tel [phone]

Fax [phone]

[e-mail]

Mia K Walton

Senior Vice President - Corporate Communications

Rolls-Royce North America Inc.

Tel + 1 703 621 2709

Fax [phone]

[e-mail]

Web www.rolls-royce.com