Re Contract

24 July 2012 ROLLS-ROYCE GAS ENGINES TO POWER NORWEGIAN CRUISE FERRIES Rolls-Royce, the global power systems company, today announced that it has signed a contract with shipowner Fjord Line A/S to install Liquefied Natural Gas (LNG) based power and propulsion systems in two cruise ferries being built at the Bergen Group Fosen AS yard in Norway. Each vessel will be equipped with four gas engines, powering a highly efficient Promas integrated rudder and propeller propulsion system. The gas-only fuelled engines will reduce Nitrogen Oxide (NOx) emissions by about 90 per cent while Sulphur Oxide (SOx) and particulates emissions will be negligible. Emissions from Rolls-Royce gas engines are already within the limits of IMO (International Maritime Organisation) Tier III environmental legislation, due to come into force in 2016. Rolls-Royce General Sales Manager - Merchant & Navy Engines, Odd Magne Horgen, said: "These vessels will be the first international LNG-fuelled passenger vessels in operation and we are very pleased to be a part of this ground breaking project. Rolls-Royce technology will drastically reduce emissions delivering significant efficiency gains to the customer." Chief Executive of Fjord Line A/S Ingvald Fardal, said: "Fjord Line has a clear environmental strategy and choosing single fuel gas engines makes us pioneers in the cruise ferry industry. We will have the first and the largest cruise ferry ever to run on LNG as the sole fuel type. Rolls-Royce is the leading manufacturer of these well proven gas engines and we are very pleased to have their technology onboard." Each of the vessels will have a deadweight of 4,000 tonnes and a length of 170 metres. They will have 309 cabins, and room for 1,500 passengers and 600 cars. Rolls-Royce will deliver the gas systems during 2012, and the passenger ferries will begin regular service between the west coast of Norway and Denmark in the summer of 2013. Notes to Editors: 1. Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy. 2. As a result of this strategy, Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 4,000 marine customers, including 70 navies, and energy customers in more than 80 countries. 3. Annual underlying revenues were £11.3 billion in 2011, of which more than half came from the provision of services. The firm and announced order book stood at £62.2 billion at 31 December 2011, providing visibility of future levels of activity. 4. Rolls-Royce employs over 40,000 people in offices, manufacturing and service facilities in over 50 countries. Over 11,000 of these employees are engineers. 5. In 2011, Rolls-Royce invested £908 million on research and development, two thirds of which had the objective of further improving the environmental performance of its products, in particular reducing emissions. 6. Rolls-Royce supports a global network of 28 University Technology Centres, which connect the company's engineers with the forefront of scientific research. 7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. 8. The Marine business of Rolls-Royce employs 9,000 people in 35 countries with the main manufacturing centres being in the UK, the Nordic countries, the United States and increasingly Asia. 9. Rolls-Royce is a world leader in marine solutions, providing products, service and expertise to more than 30,000 vessels in the offshore, merchant, naval surface and submarine markets. It designs ships and its product range includes propulsion systems featuring diesel engines and gas turbines, propellers, thrusters and water jets. Rolls-Royce also provides manoeuvring and stabilising systems and deck machinery. For further information, please contact: Investors: Simon Goodson Director - Investor Relations Rolls-Royce plc Tel: +44 (0)20 7227 9237 simon.goodson@rolls-royce.com Media: Josh Rosenstock Director of External Communications Rolls-Royce plc Tel: +44 (0)20 7227 9163 josh.rosenstock@rolls-royce.com www.Rolls-Royce.com
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