Re Contract

Rolls-Royce PLC
10 December 2001

                                                             10 December, 2001



           ROLLS-ROYCE WINS £360 MILLION SUBMARINE SUPPORT CONTRACT



Rolls-Royce has won a second service contract from the Ministry of Defence to
ensure the safety and power performance of Royal Navy nuclear submarines, in a
deal worth £360 million, it was announced today (December 10).



Under this contract, the company will continue to operate and maintain the
Vulcan Naval Reactor Test Establishment site at Dounreay, Scotland, on behalf
of the Ministry of Defence, to service and support Royal Navy programmes over
the next 13 years. This facility tests the operation and performance of the
nuclear power plants used to support the UK submarine flotilla.



On November 14, Rolls-Royce announced it had won a contract to provide a total
powerplant support package, worth £100 million over the next three years.
Future programmes envisaged for 2004-2011 are potentially worth a further £300
million.



Saul Lanyado, Rolls-Royce President - Marine said: 'Customer support is an
important part of Rolls-Royce strategy, representing 40 per cent of Group
sales. The company has invested in enhancing its customer service capabilities
and this contract is another example of the emphasis we place on continuing
support to our customers.



'We have in place two long-term agreements which provide Rolls-Royce and the
Ministry with a clear vision of how our partnership will develop to ensure the
performance and availability of the submarine flotilla.'



A key element of the Vulcan contract will be confirming the performance and
safety of the long-life reactor core, part of the propulsion plant
manufactured by Rolls-Royce. This type of core will power the new Astute class
of submarines for their full platform life and will also be retrofitted to the
Vanguard class.



Rolls-Royce has operated the Vulcan site since 1964. The company has designed,
supplied and supported all the reactor systems and equipment that powers the
Royal Navy's nuclear submarine fleet.





Notes to Editors



Rolls-Royce plc is a global company providing power for land, sea and air. The
company has established a balanced business, with leading positions in civil
aerospace, defence aerospace, marine and energy markets, where its core
technology can be applied over a broad range of products and services.



Its aerospace businesses have customers in over 150 countries, including more
than 500 airlines, 2,400 corporate and utility operators and 160 armed forces,
using both fixed and rotary wing aircraft.



Rolls-Royce is the global leader in marine power systems, with a broad product
range and full systems integration capability. More than 2,000 commercial
marine customers and over 30 navies use Rolls-Royce propulsion and products.
In energy markets, the company is investing in new products and capabilities
for the oil and gas industry and power generation.



Rolls-Royce pioneered gas turbine technology for aerospace, power generation
and marine propulsion, and is involved in the major future programmes in these
fields, including the WR-21 marine engine, leading-edge water jet propulsion
systems, and combat engines for Eurofighter Typhoon and the Joint Strike
Fighter.



For further information please contact



Bill O'Sullivan

Communications Manager

Rolls-Royce

Tel [phone]

Fax [phone]

email [e-mail]

web www.rolls-royce.com



Gordon Welsh

Head of Communications - Marine

Rolls-Royce

Tel [phone]

Fax [phone]

Email [e-mail]