Agreement

Bodycote International PLC
23 August 2000


For further information, please contact:

John Chesworth, Managing Director
Bodycote International plc             Tel:  [phone]




               BODYCOTE ANNOUNCES NEW AGREEMENT WITH ROLLS-ROYCE

Bodycote International plc are pleased to announce that they have entered into
a five year exclusive agreement with Rolls-Royce plc, for the supply of all
vacuum heat treatment services required to support Rolls-Royce's Combustion
Systems Business.  Commencing in September existing Bodycote plants will
provide guaranteed capacity to both Hucknall (Nottingham) and Bristol
operations.

The agreement provides significant heat treatment, logistics and cost benefits
and the use of a real time processing data base, linked to Bodycote plants,
coordinated by Bodycote personnel at Hucknall, will enable both companies to
maximise operational efficiency.

Aggregation of furnace loads will reduce unit costs and improve lead times for
Rolls-Royce and add around £1.3M p.a. to Bodycote sales. Rolls-Royce will also
benefit from Bodycote's continuous investment policy which ensures that state
of the art vacuum furnace capacity is available to service their requirements
now and in the future.

This is another example of a strategic decision, which rests upon the ability
of Bodycote to address world engineering demands for highly efficient
production in the metallurgical services area.  As with the 'Factory Gates'
facility established last year to support Rolls-Royce plc at Derby, this
latest agreement allows Rolls-Royce to concentrate resources upon their core
business development.  By combining the product knowledge of Rolls-Royce with
the latest technology equipment and operating skills of Bodycote, the
developing 'partnership' between both companies will be further strengthened,
ensuring continuity in this vital field of metallurgical support services.