Re Contract

22 December 2009

           TWO NEW ROLLS-ROYCE OFFSHORE VESSELS FOR ISLAND OFFSHORE            

Rolls-Royce, the global power systems company, has won an order to design and
equip two diesel electric UT 776 CD offshore service vessels for leading
offshore ship owner, Island Offshore.

The vessels are to be built by STX Europe for delivery in 2011 and 2012. The
total value of the Rolls-Royce contract is around £20 million.

These new generation supply vessels will be delivered with a fully-integrated
equipment system from Rolls-Royce, including engines, propulsion systems and
deck machinery. The order also includes motion control systems, thrusters and
automation systems.

The vessels will each measure 93 metres in length and 20 metres wide and the
deck area will be more than 1,000 square metres. The vessels will be equipped
for oil-spill response, and the UT 776 CD design meets present and foreseen
regulations.

Jørn Heltne, Senior Vice President, Rolls-Royce Ship Technology - Offshore,
said: "We are delighted to have won this contract. It once again shows the
importance of close cooperation between ship owners, designers, equipment
manufacturers and yards in the Norwegian offshore cluster.

"This new contract underscores our position as the market leader in high
specification offshore vessels, and our capability to deliver fully-integrated
ship design and equipment packages. We are very pleased that Island Offshore
now choose to add two more Rolls-Royce designed vessels to their fleet."

Earlier this year Island Offshore took delivery of two vessels of the same
Rolls-Royce UT 776 CD design - Island Chieftain and Island Commander - and has
a wide range of Rolls-Royce designed vessels in its fleet.

Over 650 Rolls-Royce designed UT vessels are either in service or under
construction around the world.

NOTE TO EDITORS:

 1. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy.
   
 2. As a result of this strategy, Rolls-Royce today has a broad customer base
    comprising more than 600 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,000 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Rolls-Royce employs over 38,000 skilled people in offices, manufacturing
    and service facilities in 50 countries. The Group has a strong commitment
    to apprentice and graduate recruitment, and to further developing employee
    skills.
   
 4. Sixty per cent of research and development investment and 40 per cent of
    new product development spending over the past five years has been outside
    the UK, with particularly strong relationships with the 27 universities
    worldwide where there are Rolls-Royce University Technology Centres.
   
 5. The Marine business of Rolls-Royce employs 8,000 people in 34 countries
    with the main manufacturing centres being in the UK, the Nordic countries,
    the United States and increasingly Asia.
   
 6. 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. Around 30 per cent
    of Marine turnover is derived from service support activity, with a global
    network of sales and service offices in 34 countries. Rolls-Royce equipment
    is in service with more than 70 navies.
   
 7. In 2008, Rolls-Royce invested £885 million on research and development, two
    thirds of which had the objective of further improving the environmental
    aspects of its products, in particular the reduction of emissions.
   
 8. Annual underlying revenues were £9.1 billion in 2008, of which 52 per cent
    came from services revenues. The firm and announced order book stood at 
    £57.5 billion at 30 June 2009, providing visibility of future levels of
    activity.
   
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