Re Contract

8 December 2005

                   ROLLS-ROYCE AWARDED $41 MILLION CONTRACT                    
                   TO UPGRADE CHINA'S WEST-EAST GAS PIPELINE                   

Rolls-Royce has won a $41 million contract from China for an additional three
industrial RB211 gas turbine compression packages to be installed on Phase 1 of
the West-East Gas Pipeline.

The contract, awarded by PetroChina West-East Pipeline Company, also includes
upgrading seven Rolls-Royce compressors already operating on the 3,900 km/2,400
mile line.

The new gas turbines and compressor upgrades, scheduled to be in commercial
operation by the end of 2006, will enable the first phase of the China
West-East Pipeline Project (WEPP) to increase its natural gas flow from 12 to
17 billion cubic meters (bcm) per year.

Tom Curley, President of the Rolls-Royce energy business, said: "We are
extremely pleased to receive these orders for this important upgrade project
that will bring increased natural gas energy to the higher-populated eastern
regions of China.

"We are very proud of our performance of delivering the first 12 RB211 WEPP
pipeline compression packages on time, to schedule and on budget."

Rolls-Royce announced the original order for 12 RB211 gas turbines and five
variable speed motor-driven compressor sets for Phase I of the project in
February 2004. Delivery of the 12 RB211 packages to the WEPP pipeline sites has
now been completed, while the motor-driven packages will be delivered in
conjunction with the upgrade equipment.

The WEPP pipeline extends from the Tarim basin in the West Gobi desert, to the
city of Shanghai on China's eastern coast. The route crosses nine Chinese
provinces. Current estimates suggest there is a 20-year supply of gas in the
Tarim Basin.

NOTES TO EDITORS

 1. The three new RB211 compression packages, for stations 2,6 and 7, and the
    five variable speed motor-driven units will be packaged at the Rolls-Royce
    facility in Mount Vernon, Ohio, USA.
   
 2. The compressor upgrade portion of the project includes five new high-flow
    aero designs to be incorporated into seven Rolls-Royce RFBB-36 compressors
    at stations 1 through 8.
   
 3. Phase I of the WEPP pipeline, when completed, will consist of 10 stations
    with two complete compressor packages installed in each station. The
    packages feature Rolls-Royce RFBB-36 high-efficiency pipeline compressors,
    driven by either an RB211 gas turbine (15 units in total) or a variable
    speed motor (five units in total).
   
 4. Even at its lower capacity of 12 bcm, the WEPP pipeline would deliver the
    equivalent amount of natural gas required daily to heat six million homes.
   
 5. Over 670 Rolls-Royce gas compression sets have now been ordered for 45
    pipelines in 24 countries.
   
 6. 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.
   
 7. Total operating hours of Rolls-Royce industrial gas turbines worldwide is
    over 142 million.
   
For more information, please contact:

Gary Hyman
Head of Communications - Energy Business
Rolls-Royce
Tel: [phone]
Email: [e-mail]
Web www.rolls-royce.com

Richard Catling
Crest Communications (PR) Limited
Tel: [phone]
Email: [e-mail]

For downloadable images of Rolls-Royce products visit
http://www.rolls-royce.com/media/gallery/energy/default.jsp
Visit http://www.thenewsmarket.com to download broadcast-standard video or
order a Beta SP tape.