Re Contract

19 January 2009

               ROLLS-ROYCE TO POWER INDIAN PIPELINE EXTENSION IN               
                       $130 MILLION GAS TURBINE CONTRACT                       

Rolls-Royce engines will power an extension to one of India's major gas
pipelines in a deal with Gas Authority India Limited (GAIL) valued at more than
$130 million. Six RB211-GT61 gas turbine compression packages will be supplied
to increase the flow of gas to 56 million cubic meters per day as part of an
integrated national gas grid GAIL is creating to support economic growth across
India.

Three gas compression sets will be installed at each of the Vijaipur and
Jhabua, with each one maintaining pipeline hydraulics by compensating for the
loss of gas pressure that occurs along a pipeline.

Tom Curley, President of the Rolls-Royce energy business said: "India is an
important and growing market for Rolls-Royce and we are very pleased to
strengthen our long-standing relationship with GAIL. Rolls-Royce has
unparalleled experience, providing power for major oil and gas pipelines in 24
countries around the world, and this new contract is further demonstration of
the benefits our technology is delivering."

Rolls-Royce now has more than 100 gas turbine and compressor installations in
India and this new contract increases the number of RB211 compression units
operating on the GAIL network to 14. The Group also provides power for the Oil
and Natural Gas Commission of India in the Bombay High gas field with 36 gas
turbine and compressor units.

Rolls-Royce will manufacture the industrial RB211s at its Montreal, Canada
facility and the centrifugal gas compressors will be built at its Mount Vernon,
Ohio factory in the US.

Assembly of the complete gas turbine packages will also take place at Mount
Vernon. Delivery of all six units is scheduled for the first quarter of 2010.

Notes to editors:

 1. GAIL (India) Limited, is India's flagship Natural Gas company, integrating
    all aspects of the Natural Gas value chain (including Exploration &
    Production, Processing, Transmission, Distribution and Marketing) and its
    related services.
   
 2. GAIL has more than 7,000km of Natural Gas high pressure trunk pipeline with
    a capacity to carry 148 MMSCMD of natural gas across the country
   
 3. Rolls-Royce has more than 1,300 engines in service in India, mainly as a
    result of long-term defence programmes. However, all four of the company's
    global market sectors - civil aerospace, defence aerospace, marine and
    energy - are well represented.
   
 4. In India the energy business has more than 100 gas turbines in service
    generating power and driving gas compressors for on-shore and offshore
    applications. Fourteen are RB 211s with the remainder being Avon and 501
    engines. In addition, more than 250 Rolls-Royce reciprocating engines
    operate in India. Total installed capacity of Rolls-Royce energy customers
    in India exceeds 1500M.
   
 5. Rolls-Royce Energy Systems India Private Limited (RRESIPL) based in Delhi
    is a wholly-owned subsidiary of Rolls-Royce plc. RRESIPL has proven
    capability in engineering, project management and after-sales customer
    services for reciprocating (diesel and gas) engines.
   
 6. Over 670 Rolls-Royce gas compression sets have now been ordered for 46
    pipelines in 24 countries, the majority of these powering Rolls-Royce
    pipeline compressors which are among the most efficient available on the
    market.
   
 7. Total operating hours of Rolls-Royce industrial gas turbines worldwide is
    over 160 million.
   
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