ROLLS-ROYCE WINS MARINE CONTRACTS

9 September, 2003

          ROLLS-ROYCE WINS MARINE CONTRACTS WORTH UP TO £110 MILLION           

Rolls-Royce has won two naval marine contracts, worth up to £110 million, to
power submarines and support Royal Fleet Auxiliary ships.

The company will supply two long-life reactor cores, worth £60 million, for
Royal Navy Vanguard-class submarines in a contract with the UK Ministry of
Defence. This core type is designed to operate throughout a submarine's service
life without the need to refuel and will also power the new Astute class of
submarines currently under construction.

The Ministry also has an option for Rolls-Royce to provide a core, worth over £
20 million, to a different design for a Trafalgar-class submarine.

Rolls-Royce has also won a long-term contract from the Royal Fleet Auxiliary to
support 20 ships, worth a potential £30 million over ten years.

The contract, fixed for five years with options for a further five, covers
spares and services supply, and training for all Rolls-Royce equipment on the
ships, including main propulsion and auxiliary diesel engines, stabilisers,
replenishment and deck equipment, propellers and bearings.

Saul Lanyado, Rolls-Royce President - Marine, said: "Our first reactor core was
delivered 40 years ago, and this contract continues a relationship based on
engineering excellence and continued innovation. The RFA contract is further
example of our commitment to long-term support contracts which help our
customers plan out their requirements and reduce ownership costs."

Note to editors

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.

Most of the engines in service will have operational lives of 25 years or more,
generating an assured aftermarket demand for the provision of spare parts and
services. The company's strategy is to maximise aftermarket revenues which have
increased by 60 per cent over the past five years due to the development of a
comprehensive services capability.

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

Bill O'Sullivan

Communications Manager

Rolls-Royce

Tel [phone]

Fax [phone]

Mobile [phone]

Email [e-mail]

Web www.rolls-royce.com