Re Contract

August 26 2003

                 ROLLS-ROYCE WINS $30M INDUSTRIAL GAS TURBINE                  

                              ORDER FROM THAILAND                              

Rolls-Royce has won a $30 million follow-on order for industrial gas turbines
in Thailand to complement existing units that have operated there reliably for
nearly 20 years. The new order is for two Avon electrical generator sets and
one RB211 Dry Low Emission (DLE) compressor package.

The units have been ordered by Samsung Engineering Co. Limited on behalf of the
Petroleum Authority of Thailand (PTT) to provide additional power for PTT's Mab
Ta Phut, Rayong, gas plant, which introduced Rolls-Royce Avon power in 1984.

The gas separation plant, designated GSP5, is being expanded by PTT and is
scheduled for project start-up in November 2004. To meet this date the
Rolls-Royce equipment, which is being manufactured at the Mount Vernon facility
in the USA, will be delivered later this year and in early 2004.

PTT will now operate three different Rolls-Royce gas turbine models available
for use in the gas production industry - 501, Avon and RB211. They currently
have nine units installed at Mab Ta Phut (Rayong), six for gas compression duty
and three in electrical power generation service.

One of the first projects in Thailand to benefit from the increased supply of
natural gas from the GSP5 plant is a major network supplying gas for power
plants and other industries in Thailand. The company also plans to expand the
scheme to include settlements along the PTT gas pipeline network.

For further information contact:

Gary Hyman

Rolls-Royce Energy Systems Inc

Tel: [phone]

Email: [e-mail]

Website: www.rolls-royce.com