Re Contract

February 19, 2007

  ROLLS-ROYCE WINS MAJOR SHIP DESIGN AND EQUIPMENT CONTRACTS IN SOUTH AMERICA  

Rolls-Royce has further strengthened its position in South America as a
supplier of designs and equipment packages for offshore vessels with contracts
for six platform supply vessels (PSV) worth around £45 million, including the
first offshore orders from Chile.

CBO (Companhia Brasileira de Offshore) has ordered four UT-Design type UT 715 L
offshore supply vessel design and equipment packages. The 3,000 tonne
deadweight PSVs are to be built by Allianca shipyard near Rio de Janeiro for
delivery in 2009 and 2010. The vessels will go straight into long-term charters
with the Brazilian state oil company, Petrobras.

The other UT-Design contract is from the Chilean shipyard Asnavales (Astilleros
y Servicios Navales) S.A, which is to build two UT 745 CD (clean design) supply
vessels for an international shipowner. These large PSVs mark the first time
that offshore service vessels using designs and equipment from Rolls-Royce have
been built in Chile.

Jørn Heltne, Vice President for Ship Technology - Offshore in Rolls-Royce,
said:

"At the end of the 1990s, CBO was the first Brazilian shipowner to have
offshore service vessels built in Brazil, after 20 years with little
shipbuilding activity there. The first vessel was the UT755 CBO Campos, and
since then Rolls-Royce has had a good and close co-operation with CBO.

"Since then, CBO has built a range of our designs, including the type~
UT 715 L similar to the vessels that have now been ordered. We are delighted
that CBO has once again chosen our design and equipment.'

These new orders are in addition to ten UT-Design vessels currently under
construction in Brazil. Altogether, some 40 vessels of UT-Design with related
packages of Rolls-Royce equipment have been built in Brazil in the past six to
seven years.

At the end of 2006, ASMAR Shipbuilding and Shiprepairing Company based in
Talcahuano in Chile, won a contract to build a coastguard vessel for Iceland,
using a new UT512 L design and equipment package from Rolls-Royce.

Notes to Editors

1. The Marine business of Rolls-Royce employs 7,400 people in 34 countries with
the main manufacturing centres being in the UK, the Nordic countries, the
United States and increasingly Asia.

2. Rolls-Royce, the world-leading provider of power systems and services for
use on land, at sea and in the air, operates in four global markets - civil
aerospace, defence aerospace, marine and energy. It is investing in core
technology, capability and infrastructure that can be applied across these
sectors to take a competitive range of products to market. These investments
create high barriers to entry.

3. Rolls-Royce has a broad customer base comprising 600 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 70 navies. The company has energy
customers in 120 countries. Rolls-Royce is a technology leader, employing
around 37,000 people in offices, manufacturing and service facilities in 50
countries.

For further information please contact

Bill O'Sullivan
Senior Communications Manager
Rolls-Royce
Tel [phone]
Fax [phone]
Email [e-mail]
Web www.rolls-royce.com

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