Re Agreement

Rolls-Royce PLC
13 February 2002

13 February 2002

          ALSTOM AND ROLLS-ROYCE SIGN LONG-TERM TECHNOLOGY AGREEMENT

ALSTOM and Rolls-Royce announced today (13 February 2002) that they have signed
a long-term technology agreement which will enable ALSTOM to use Rolls-Royce
aero engine technology in the development of its heavy duty gas turbine product
range.

This agreement is in line with ALSTOM's long-term strategy to offer a
highly-competitive heavy duty gas turbine product range to address the largest
segment of the global power generation equipment market.

Rolls-Royce aero engines operate using very high temperature technologies,
advanced aeorodynamics and high strength/high temperature materials. The
expertise and knowledge in these areas gained by Rolls-Royce in developing its
world-leading aero engines will be applied to ALSTOM's heavy duty gas turbines
to improve efficiency, power output and durability.

Access to these enhanced technology solutions will strengthen ALSTOM's future
competitive position in the heavy duty gas turbine market and result in
economies of scale in the company's research and development spending.

In addition to technology access, Rolls-Royce will also provide engineers to
assist ALSTOM in the application of technology on specific development projects.
A joint design team is in place in ALSTOM's office in Derby, UK.

Rolls-Royce will be compensated for initial access to technology by payments
spread over a number of years.  In addition, royalties will be paid on future
product sales.  Specific financial details were not disclosed.

Alexis Fries, President of ALSTOM's Power Sector, commented: 'We are very
pleased to have established this close relationship with the aero technology
leader. I believe the new, more competitive products which will result from this
strategic initiative will enable us to increase significantly our market share
over the years to come.'

Mike Howse, Rolls-Royce Director, Engineering & Technology said: 'This agreement
is a further step in our strategy of gaining maximum benefit from our unique gas
turbine technology and know-how over a broader market.  Under this arrangement
we can gain value for our technology in the heavy duty gas turbine sector where
we do not compete.'

Note to editors:

ALSTOM is the global specialist in energy and transport infrastructure. The
Company serves the energy market through its activities in the fields of power
generation, power transmission and distribution and power conversion and the
transport market through its activities in rail and marine. Following the sale
of its electrical contracting activity, finalised on 20 July 2001, ALSTOM has
annual sales in excess of 22 billion euros and employs 120,000 people in over 70
countries.  The Company is listed on the Paris, London and New York stock
exchanges.

Rolls-Royce is a global company providing power for land, sea and air. It
employs some 42,000 people in more than 30 countries, including over 26,000 in
the UK, 5,000 in the rest of the Europe and over 8,000 in North America.  The
company has a balanced business portfolio with leading positions in civil
aerospace, defence aerospace, marine and energy markets. With annual  sales of
around £6 billion and a forward order book of nearly £15 billion, its technology
is applied over a wide range of products which generate high-value services
throughout their operational lives.

For further information please contact:

Colin Duncan                          Peter Barnes-Wallis
Director of Corporate Communications  Director of Financial Communications
Rolls-Royce plc                       Rolls-Royce plc
Tel: [phone]                    Tel:  [phone]
Fax: [phone]                    Fax: [phone]
Email: [e-mail]   Email: [e-mail]



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