Re Contract

Rolls-Royce PLC
14 March 2001

                                                                 14 March 2001


NORTHROP GRUMMAN AND ROLLS-ROYCE AWARDED WR-21 GAS TURBINE CONTRACT OF AROUND
                                 £84 MILLION


Northrop Grumman and Rolls-Royce plc have been awarded a contract worth
approximately £84 million by prime contractor BAE SYSTEMS to supply 12 WR-21
marine gas turbine packages for the first six ships of a new fleet of air
defence destroyers for the United Kingdom's Royal Navy.

The Northrop Grumman/Rolls-Royce team, supported by French marine engineering
company DCN, will supply intercooled and recuperated WR-21s for the first six
Type 45 'D' class destroyers. A class of up to 12 vessels is planned.

Northrop Grumman's Marine Systems business, based in Sunnyvale, California,
United States, is prime contractor for the WR-21 engine programme, with
overall responsibility for engineering and systems integration. Rolls-Royce is
designing and developing the gas generator and power turbine.

Jim Hupton, Vice President of Northrop Grumman Marine Systems, said: 'The
WR-21 is based on advanced but proven technology and we continue to have lots
of interest from navies around the world.'

Dr Saul Lanyado, President - Marine, for Rolls-Royce, said: 'British ships
will be the first to be powered by the WR-21, the next generation of
fuel-efficient gas turbines. We are delighted BAE SYSTEMS has been able to
order six shipsets, which will create greater efficiencies in the production
process.'

Rolls-Royce has followed a consistent strategy of investing in its marine
capabilities and this decision is a significant boost for the company, which
has enlarged its interests in the sector following the acquisition of Vickers
in 1999.

The Type 45s will replace the Royal Navy's long-serving Type 42 destroyers and
are due to enter service in 2007.

The WR-21 is currently being qualified for US Navy applications in conjunction
with the Royal Navy and French Navy at the DCN Indret facility, near Nantes,
in France.


The WR-21 is a 25MW rated engine delivering 21.5MW to the Type 45 and is the
culmination of a nine-year, £300 million development programme funded by the
US, British and French navies. It is based on the highly successful
Rolls-Royce RB211 and Trent families of commercial aircraft engines which have
amassed more than 100 million flight hours. WR-21 is fuel efficient compared
to simple cycle engines across the power range and modularity simplifies
maintenance and support.



        Note to Editors

Rolls-Royce plc is a global company providing power on land, sea and air. The
company has established leading positions in civil aerospace, defence, marine
and energy markets. Its core gas turbine technology has created one of the
broadest product ranges of aero engines in the world, with 55,000 engines in
service in over 150 countries. Customers include 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. Over 2,000 marine customers and
more than 30 navies use Rolls-Royce propulsion. The company is investing in
new products and capabilities for energy markets which include the oil and gas
industry and power generation. It also develops its own power projects through
Rolls-Royce Power Ventures Ltd.

Rolls-Royce pioneered gas turbine technology for aerospace, power generation
and marine propulsion and is involved in major future programmes in these
fields. These include the Trent aero and industrial engines, the Eurofighter
Typhoon and Joint Strike Fighter combat engines, the WR21 marine engine and
leading edge water jet propulsion systems.


        For further information please contact

Bill O'Sullivan

Communications Manager

Rolls-Royce plc

Tel: [phone]

Fax: [phone]

e-mail: [e-mail]

web site: www.rolls-royce.com