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Re Contract

4th Feb 2011 07:00

4 February 2010 ROLLS-ROYCE WINS £20M CONTRACT TO POWER FUEL EFFICIENT FERRIES

Rolls-Royce, the global power systems company, has signed a £20 million contract to supply engines and propulsion equipment for four gas-fuelled ferries to be built for the Norwegian operator Torghatten Nord AS.

The vessels will be the first in the world to feature the Rolls-Royce Hybrid Shaft Generator (HSG), which produces electrical power with reduced fuel consumption and emissions. They will also include market leading lean-burn Rolls-Royce Bergen gas engines and the company's innovative integrated propeller and rudder system (Promas) that reduces drag and increases thrust.

These technologies will combine to offer an unrivalled environmental performance, including a 40% reduction in CO2 emissions, compared to conventional vessels.

Oddbj¸rn Eliassen, Rolls-Royce, President - Merchant said: "Rolls-Royce is a global leader in the supply of energy efficient technologies which enable ship operators to address the environmental challenges they face. These ferries will combine a range of cutting edge technologies to deliver significant improvements in fuel efficiency and reductions in emissions."

HSG is an advanced electrical system that enables a step-change in ship efficiency by varying engine and propeller speed to reduce fuel comsumption and consequently lower emissions. Ships' engines traditionally operate at a fixed speed when conventional shaft generators are in use, but HSG allows shaft speed to be reduced, while maintaining a constant frequency for the electrical supply throughout the ship.

These ferries will serve two routes across Vestfjorden in Lofoten in the north of Norway, a stretch of water known for its harsh conditions. They will be built by the Remontowa Shipyard in Gdansk, Poland for delivery in the second half of 2012.

Notes 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. Rolls-Royce employs over 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.

3. In 2009, Rolls-Royce invested £864m 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.

4. 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

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

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 power and propulsion systems featuring diesel engines and gas turbines, propellers, thrusters and water jets. Rolls-Royce also provides manoeuvring and stabilising systems and deck machinery.

7. Liquefied natural gas (LNG) is set to become an important marine fuel of the

future and Rolls-Royce is a leading supplier of gas-fuelled propulsion systems

including the Bergen lean-burn engines, gas storage and handling equipment.

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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