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Re Agreement

19th Jan 2011 09:45

19 January 2011 ROLLS-ROYCE TO SUPPORT DELIVERY OF WESTINGHOUSE AP1000â„¢ NUCLEAR REACTOR IN THE UK

Rolls-Royce today signed an agreement to collaborate with the Nuclear Power Delivery UK (NPD) consortium in its plans to deploy the Westinghouse AP1000â„¢ nuclear reactor in the UK.

Under the terms of the agreement, Rolls-Royce will support NPD in the development of proposals for engineering, manufacture and supply of mission critical components for the heart of the nuclear reactor. Rolls-Royce will also explore the provision of nuclear engineering, technical support and supply chain management expertise to the consortium.

Lawrie Haynes, Rolls-Royce President - Nuclear said: "I am delighted that we are able to work with NPD to explore the supply of mission critical nuclear reactor components and engineering services.

"Today's agreement builds on the strong relationship that we have developed with Westinghouse and the work we have successfully completed for them. We can now move forward in support of NPD, while maintaining the strategic relationship we have developed with Westinghouse.

"Deploying Rolls-Royce's unique combination of nuclear skills and capabilities will enable our customers to deliver assured programmes and help them to succeed in their chosen markets."

Rita Bowser, Managing Director, Nuclear Power Deliver UK said: "We are delighted to be announcing this agreement with Rolls-Royce - one of the biggest names in the nuclear industry supply chain - building on the work which Westinghouse and Rolls-Royce carried out under the earlier agreement ".

Rolls-Royce has a significant nuclear skills base, with a large existing nuclear certified supply chain, and supports a number of key phases of the nuclear programme, including providing advice to governments and operators, supply chain management expertise, as well as manufacturing and technical engineering support. The Group also provides safety-critical instrumentation and controls in Europe, USA and many other international markets, including all 58 operating nuclear power facilities in France.

Notes to Editor

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 39,000 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. In 2009, Rolls-Royce invested £864 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.

5. Annual underlying revenues were £10.1 billion in 2009, of which about half

came from services revenues. The firm and announced order book stood at

£58.4 billion at 30 June 2010, providing visibility of future levels of

activity.

Rolls-Royce Nuclear:

1. Rolls-Royce has a large and highly experienced nuclear skills base with

approximately 2,600 employees in the UK, France, US and Canada.

2. Rolls-Royce provides nuclear power utility vendors and operators with

integrated, long-term solutions and support services spanning the whole reactor lifecycle, from concept design through to obsolescence management and plant life extension. With nuclear expertise including component manufacturing, licensing, project and supply chain management as well as world-class engineering, the company has been a key player in the industry for over 50 years.

3. As the lead industrial partner, Rolls-Royce is supporting the development

of the UK's Nuclear Advanced Manufacturing Centre that will bring together

an industrial consortium of around 30 companies from the UK nuclear supply

chain. University partners will lead key research themes.

Nuclear Power Delivery UK:

1. NPD UK is a team comprising Westinghouse Electric Company, The Shaw Group,

Laing O'Rourke and Toshiba. For more information visit

www.nuclearpowerdeliveryuk.co.uk

For further information, please contact:

Investor relations:Mark AlflattDirector of Financial CommunicationsRolls-Royce plcTel: +44 (0)20 7227 [email protected] relations:Josh RosenstockHead of Corporate CommunicationsRolls-Royce plcTel: +44 (0)20 7227 [email protected]

www.rolls-royce.com

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