Disposal

Rolls-Royce PLC
21 December 2000



ROLLS-ROYCE SELLS UK MATERIALS HANDLING BUSINESS


Rolls-Royce plc has sold its UK Materials Handling business to
Nottinghamshire- based engineering and construction group Langley Holdings plc
for an undisclosed sum.   

Under the deal Langley Holdings takes over the UK Materials Handling operation
of Rolls-Royce, which is best known as Clarke Chapman and which employs over
400 people.  

Clarke Chapman supplies crane systems for a range of sectors including
nuclear, ports, offshore platforms, steel producers and railways through its
Wellman Booth, Stothert & Pitt and Cowans Sheldon divisions. The business also
undertakes facilities management contracts at ports, naval dockyards and
industrial locations around the UK and overseas. 

The sale does not include the Clarke Chapman Marine business, which supplies
deck machinery and replenishment at sea systems. That business remains as part
of the Marine business of Rolls-Royce.

Paul Heiden, Finance Director, Rolls-Royce plc, said: 'We are pleased to have
reached a successful outcome to the sale process which now allows Rolls-Royce
to increase the focus on its core business.'

Tony Langley, Chief Executive of Langley Holdings, confirmed that the business
would remain intact and that no job losses were envisaged. 'Clarke Chapman,
Wellman Booth, Stothert & Pitt and Cowans Sheldon are some of the best names
in the crane business and they will be joined by our recently acquired Ruston
Bucyrus crawler crane business to become the most significant player in the
specialist handling field,' he said. 
 
In March 2000, Rolls-Royce announced that its Materials Handling businesses
were to be sold or closed. The disposal process, which has involved site
closures outside the UK, is substantially concluded by today's announcement.  

The Materials Handling businesses will be reported as 'businesses disposed'
when Rolls-Royce announces its 2000 financial results.  As a consequence of
the sale and closures, goodwill amounting to £40 million, previously written
off against reserves, will be written off against the profit and loss account.
 In addition the company expects to report exceptional closure costs of £30
million and a trading loss of £6 million. The net assets of the businesses
sold are less than £5 million. 




For further information please contact

Martin Nield
Head of Communications, Defence and Energy
Rolls-Royce plc.
Tel:       [phone]
Fax:       [phone] 

Crista Baxter - Marketing Manager, Langley Holdings plc 
Tel:       [phone]
Fax:       [phone]
Email:        [e-mail]