Acquisition

ROLLS-ROYCE PLC
20 August 1999


ROLLS-ROYCE BUYS ROTATING COMPRESSOR BUSINESS FROM COOPER CAMERON 


Rolls-Royce plc, the civil aerospace, defence and energy group, has bought the
rotating compression equipment interests of Cooper Energy Services (CES), part
of Cooper Cameron Corporation, based in Mount Vernon, Ohio, for $180 million.
Following this purchase, Rolls-Royce will have full control of the joint
venture company, Cooper Rolls.

The acquisition is expected to enhance earnings in the first full year of
operation. It is consistent with Rolls-Royce strategy to grow its global
energy business by providing solutions for customers in the power generation
and oil and gas markets. Rotating compression equipment is widely used in the
oil and gas industries for gas processing and gas transmission. 

John Kempster, Managing Director - Power Generation and Oil and Gas for
Rolls-Royce, said: 'Rolls-Royce is continuing to grow its position as a
leading player in world energy markets. 
 
'Our strong position in the oil and gas industry is based on 21 years of
successful experience through the joint venture company, Cooper Rolls, which
is recognised throughout the oil and gas industry as a premier supplier of gas
turbine driven packages sold under the 'Coberra(r)' name. 

'In such a highly competitive market, customers increasingly require
innovative package solutions from industry leading suppliers. 
Combining the acquired businesses will enable Rolls-Royce to provide improved
products and services. In particular, it will improve our support to customers
for integrated aftermarket services and strengthens the Rolls-Royce position
in the United States, a key energy market.' 

The purchase allows Rolls-Royce to continue to use the Cooper Bessemer trade
name for compression systems.  It will also acquire the En-Tronic division
which makes control systems for use on both compression and reciprocating
equipment packages.  

Cooper Cameron Chairman, President and Chief Executive Officer Sheldon R.
Erikson said: 'We are pleased to reach this agreement, which not only fits
into our overall plan, but also provides Rolls-Royce with the opportunity to
enhance its worldwide market presence, expand its installed base of
aeroderivative engines in the transmission and power generation fields and
improve the utilisation and efficiency of the business facilities.

'We have long believed that consolidation was the best avenue for improving
long-term performance in the worldwide rotating compressor market. Our exit
from that business and the Rolls-Royce expansion of its position is a win-win
scenario.'  

Rolls-Royce will assume control of the CES rotating compressor manufacturing
locations in Mount Vernon, Ohio, Hengelo in the Netherlands, Liverpool in the
United Kingdom and other sales and service locations around the world.

During 1998, the businesses acquired by Rolls-Royce generated approximately
$190 million in revenues. They employ around 950 people worldwide who will be
incorporated into the Rolls-Royce energy businesses which include gas turbine
and diesel engine manufacturing operations in the UK, Canada and the USA. 

The deal is subject to Rolls-Royce and Cooper Cameron securing the necessary
regulatory approvals.

Note to editors

Rolls-Royce plc is a global company meeting present and future requirements of
civil aerospace, defence and energy markets, with facilities in 14 countries. 
Its core gas turbine technology has created one of the broadest product ranges
of aero engines in the world, with 55,000 engines in service with 300
airlines, 2,400 corporate and utility operators and more than 100 armed
forces, powering both fixed wing and rotary aircraft.  In addition, more than
30 navies use Rolls-Royce propulsion.  Energy markets include the oil and gas
industry and power generation.

Rolls-Royce, the pioneer of gas turbine technology for aerospace, power
generation and marine propulsion, is today involved in the major future
programmes in these fields, including the Trent aero and industrial engines,
the Eurofighter Typhoon and Joint Strike Fighter combat engines and the WR21
marine engine.

Cooper Cameron Corporation is a leading international manufacturer of oil and
gas pressure control equipment, including valves, wellheads, controls, chokes,
blowout preventers and assembled systems for oil and gas drilling, production
and transmission used in offshore and subsea applications.  Cooper Cameron is
also a leading manufacturer of centrifugal air compressors, integral and
separable reciprocating engines, compressors and turbochargers.

For further information please contact

Ian Cameron
Communications Manager, Rolls-Royce plc

Tel: [phone]
Fax: [phone]
e-mail:[e-mail]
Rolls-Royce website: http:// www.rolls-royce.com

Chris Springham
Director-Media Relations, Rolls-Royce plc

Tel: [phone]
Fax: [phone]