ROLLS-ROYCE ACQUIRES VT CONTROLS LTD

12 August, 2003

                     ROLLS-ROYCE ACQUIRES VT CONTROLS LTD                      

Rolls-Royce has acquired marine electrical systems company VT Controls Ltd for
£11 million, continuing its growth strategy in the marine market.

VT Controls Ltd, acquired from the VT Group, will be incorporated into the
Rolls-Royce Marine Electrical Systems business set up earlier this year. The
acquisition is an important addition to the new business's capability, as it
ramps up to support marine projects involving major electrical systems.

Based in Portsmouth, VT Controls Ltd has provided power or automation systems
on all front line UK naval platforms in the last decade and is involved in
current naval programmes both in the UK and abroad. The company has an
impressive pedigree that stretches as far back as the early 1970s when it
supplied controls for Brazil's Mk 10 frigates. More recently it has taken a
power systems role in the Royal Navy Type 45 destroyer and Astute submarine,
and provided automation for Portuguese offshore patrol programmes.

The company has also developed its presence in the commercial marine sector,
providing automation, power systems, system integration and aftermarket
services.

Rolls-Royce Marine Electrical Systems is a centre of excellence for marine
electrical propulsion, automation & control and motion control systems for
commercial and naval markets, linking together other Rolls-Royce products such
as prime movers, propellers and thrusters.

Saul Lanyado, Rolls-Royce President - Marine, said: "This acquisition is an
important element of our strategy for growth in the marine sector. Our products
and services support more than 20,000 commercial and naval vessels. VT Controls
will enable us to develop an electrical systems capability to continue to turn
this product knowledge into a complete, integrated, power solution."

Rick Kane, Rolls-Royce President - Marine Electrical Systems, intends to make
the Cosham facility the business's headquarters.

The acquisition does not include the aerospace division of VT Controls Ltd,
based at Wardley, near Manchester, or the oil and gas division in Great
Yarmouth, both of which will remain within the VT Group.

Note to editors

VT Controls, based at Cosham, Portsmouth, employs 120 people on a 48,000 sq ft
site. Originally formed as the Electrical Division of Vosper Thorneycroft
Group, it has over 500 naval and marine systems installed worldwide.

Rolls-Royce plc operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It is investing in technology and capability that
can be exploited in each of these sectors to create a competitive range of
products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years. As a result, engine
deliveries have grown and the company now has a total of 54,000 gas turbines in
service worldwide. The investments in product, capability and infrastructure to
gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 50 navies. The company has energy
customers in nearly 120 countries. Rolls-Royce employs around 36,000 people, of
which 22,000 are in the UK. Forty per cent of its employees are based outside
the UK - including 5,000 in the rest of Europe and 8,000 in North America.

Annual sales total nearly £6 billion, of which 50 per cent currently comes from
aftermarket services. The order book stands at more than £17 billion, which,
together with aftermarket demand, provides visibility as to future activity
levels.

For further information please contact

Gordon Welsh

Head of Communications - Marine

Rolls-Royce

Tel [phone]

Fax [phone]

Email [e-mail]

Web www.rolls-royce.com