Re Contract

19 April 2011

                         ROLLS-ROYCE EXPANDS PIPELINE                          
                               ACTIVITY IN CHINA                               

Rolls-Royce, the global power systems company, advanced its position as an
industry leader for gas compression equipment on major natural gas pipelines
with a recent contract award from PetroChina, the largest oil and gas producer
in China.

The West-East Pipeline Project (WEPP) is the world's longest natural gas
pipeline and this order will take the number of Rolls-Royce RB211 gas turbine
compressor packages installed on this pipeline and associated feed and branch
lines to 45. This order follows contract awards over the past five years for
other major gas pipelines in India, Europe, Russia, Kazakhstan, North America
and Algeria.

Valued at $65 million, the contract is for six RB211 gas turbine compressor
packages to be installed on one of China's most important and expensive energy
projects, WEPP Line 2.  The gas turbine units will be installed at two new
compressor stations along the 2,400 km (1,500 mile) Eastern section of the
line.  They will join six RB211 units currently being installed along the 
2,450km Western section and 19 RB211 compressor sets already in service on 
WEPP Line 1. 

Tony Ruegger, Rolls-Royce, Executive Vice-President - Oil & Gas, said, "We are
delighted that once again PetroChina has put their trust in Rolls-Royce
technology for this vital gas pipeline.

"The nineteen RB211 packages currently operating in China have been in service
for nearly half-a-million hours, with the longest running engine achieving over
34,000 hours. Using Rolls-Royce aero engine technology, these gas turbine
packages continue to provide very high levels of performance and reliability."

WEPP Line 2 will have a total length of 8,859 km made up of one main trunk line
of 4,859 km and eight sub-lines.  It will transport 30 billion cubic meters of
natural gas every year from reserves in Central Asia, across 15 provinces to
major regions such as Zhejiang, Shanghai, Guangdong and Hong Kong. This
country-wide distribution of gas will help boost China's clean energy
consumption, saving an expected 11 million tonnes of coal usage every year and
thereby reducing harmful emissions.

The centrifugal gas pipeline compressors for the six new RB211 gas turbine
packages will be model RFBB-36, also designed and manufactured by Rolls-Royce.

All of the equipment for the WEPP Line 2 Eastern section is scheduled for
delivery by the fourth quarter of 2011.

NOTES TO EDITORS

 1. Rolls-Royce is a world-leading provider of power systems and services for
    use on land, at sea and in the air, and has established a strong position
    in global markets - civil aerospace, defence aerospace, marine and energy.
   
 2. As a result of this strategy, Rolls-Royce has a broad customer base
    comprising more than 500 airlines, 4,000 corporate and utility aircraft and
    helicopter operators, 160 armed forces, more than 2,500 marine customers,
    including 70 navies, and energy customers in nearly 120 countries, with an
    installed base of 54,000 gas turbines.
   
 3. Annual underlying revenues were £10.8 billion in 2010, of which more than
    half came from the provision of services. The firm and announced order book
    stood at £59.2 billion at 31 December 2010, providing visibility of future
    levels of activity.
   
 4. Rolls-Royce employs over 39,000 skilled people in offices, manufacturing
    and service facilities in over 50 countries. Over 11,000 of these employees
    are engineers.
   
 5. In 2010, Rolls-Royce invested £923 million on research and development, 
    two thirds of which had the objective of further improving the environmental
    performance of its products, in particular reducing emissions.
   
 6. Rolls-Royce supports a global network of 28 University Technology Centres,
    which connect the company's engineers with the forefront of scientific
    research.
   
 7. The Group has a strong commitment to apprentice and graduate recruitment
    and to further developing employee skills.
   
 8. Nearly 700 Rolls-Royce gas compression sets have now been ordered or
    delivered for 46 pipelines in 24 countries.
   
 9. Over 600 industrial RB211 engines have been sold worldwide to over 100
    customers in 38 countries and they have achieved more than 26 million hours
    of operation.
   
10. Today's fleet of RB211s includes a number of units that have completed more
    than 100,000 hours of operation. The longest serving industrial RB211 is on
    a pipeline in North America with over 190,000 hours, while another unit
    providing electrical power in the North Sea on an oil platform holds the
    current record for offshore service at over 146,000 hours.
   
Rolls-Royce in China

 1. Rolls-Royce has been building a strong presence in Civil Aerospace, Marine
    and Energy in China for more than 45 years. Together with its associate
    company International Aero Engines (IAE), Rolls-Royce powers more than 
    400 aircraft of twelve Chinese airlines, including Hong Kong and Macao.
   
 2. The North East Asia headquarters of the Rolls-Royce global Marine business
    is based in Shanghai where the company also runs a manufacturing facility.
    Rolls-Royce also has a successful turbine component joint venture in Xian,
    and is growing its component and materials purchasing in China.
   
 3. Rolls-Royce has collaborated with PetroChina since 2004, when it first
    started providing RB211 gas turbine packages to the West-East Pipeline
    Project (WEPP). Rolls-Royce has provided 19 RB211 gas turbine packages and
    6 compressors to WEPP Line 1 and 6 RB211 gas compressor packages to 
    WEPP Line 2. It is currently installing fourteen packages along the 
    Central Asia pipeline and the third Shaan Jing Gas Pipeline Project.
   
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