Re Contract

6 February 2004

   ROLLS-ROYCE WINS KEY $150 MILLION CHINESE WEST-EAST GAS PIPELINE CONTRACT   

Rolls-Royce, a leading provider of gas turbines for global energy markets,
today announced that it has won the contract to provide Rolls-Royce pipeline
compression equipment for the prestigious West-East China Gas Pipeline Project
(WEPP). The contract is valued at over US$150 million.

The WEPP contract follows Rolls-Royce's recent announcement that it had also
won a $107 million order for six industrial Trent gas turbine compressor sets,
for the Dolphin Energy Limited subsea gas pipeline, to run from Qatar to the
United Arab Emirates.

At a cost of $8.5 billion, WEPP represents one of the largest projects
currently being undertaken in the burgeoning Chinese energy market. It involves
the construction of a 3,900km/2,400 mile natural gas pipeline from the Tarim
basin in the West Gobi desert to the city of Shanghai on China's eastern coast.
The route will cross nine Chinese provinces.

Once completed, the pipeline will carry approximately 1.2 billion cubic feet of
natural gas per day, or the equivalent amount of gas required daily to heat six
million homes. Current estimates suggest that there is a 20 year supply of gas
in the Tarim basin.

"These abundant natural gas supplies will play a major role in satisfying the
future energy needs of China and surrounding countries," said Tom Curley,
President of the Rolls-Royce Energy Business. "We are extremely pleased to have
been selected as a major supplier to help bring these important resources to
the people of China. This success also confirms the technical strength of our
products around the world."

The pipeline will include 10 compression stations on the Western portion, and
18 distribution stations along the downstream trunk line. Two gas turbine
packages will be installed at six compression stations, and motor-drive sets
will be installed at the remaining four.

Rolls-Royce will provide 12 RB211-powered 6562 gas turbine packages, driving
Rolls-Royce RFBB36 centrifugal pipeline compressors. It will also supply eight
motor-driven RFBB36 compression sets and related controls for each of the
compression units.

The first two units are scheduled for delivery in March 2004, with remaining
units to be delivered in accordance with natural gas production requirements.
All units will be packaged at Rolls-Royce facilities at Mount Vernon, Ohio,
USA.

A recognised leader in natural gas transmission applications, Rolls-Royce
equipment is used on pipelines in 26 countries.

The industrial RB211 gas turbine is derived from its aero cousin, which has
performance founded in Boeing 747 and Lockheed 1011 (TriStar) aircraft
applications. Today, with over 15 million operating hours, the industrial RB211
is one of the most advanced, reliable, and easy-to-maintain aeroderivative gas
turbines available for global energy installations.

Rolls-Royce pipeline compressors are among the most efficient available on the
market. Over the last 50 years, over 850 units have been installed in pipeline
applications around the world.

                                      END                                      

For further information please contact

Maria Darby-Walker

Head of Corporate Media Relations

Rolls-Royce

Tel: [phone]

Email: [e-mail]

Web www.rolls-royce.com

Richard Catling

Crest Communications (PR) Limited

Tel: [phone]

Email: [e-mail]

Notes to editors

ROLLS-ROYCE ENERGY

The Rolls-Royce Energy business is a recognised leader in power and compression
solutions for worldwide oil & gas and power generation applications, both on
and off shore. Ranging from 4 to 58MW, all Rolls-Royce products are backed by a
global Customer Service organisation offering innovative service solutions,
such as long term service agreements and product upgrades, designed to enhance
customer value of Rolls-Royce equipment.

Each derived from their aero counterparts, the Rolls-Royce industrial RB211 is
one of the most advanced and reliable industrial gas turbines available, and
the industrial Trent is the most powerful and efficient unit in its class.

ROLLS-ROYCE plc

Rolls-Royce plc operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It is investing in technology and capability that
can be exploited in each of these sectors to create a competitive range of
products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years. As a result, engine
deliveries have grown and the company now has a total of 54,000 gas turbines in
service worldwide. The investments in product, capability and infrastructure to
gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 50 navies. The company has energy
customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of
which 22,000 are in the UK. Forty per cent of its employees are based outside
the UK - including 5,000 in the rest of Europe and 8,000 in North America.

The large number of engines in service will generate an assured aftermarket
demand for the provision of spare parts and services. The company's strategy is
to maximise aftermarket revenues, which have increased by 60 per cent over the
past five years due to the development of a comprehensive services capability.

Annual sales total nearly £6 billion, of which 50 per cent currently comes from
aftermarket services. The order book stands at more than £17 billion, which,
together with aftermarket demand, provides visibility as to future activity
levels.