Re Contract

4 June 2008

                      ROLLS-ROYCE WINS TRENT 60 BUSINESS                       
                              IN EIGHT COUNTRIES                               

Rolls-Royce announced today at the Power-Gen Europe show in Milan that
customers in eight countries had selected Trent 60 engines, including orders
for three additional Trent 60 electrical generating sets from two existing
customers in Belgium and Australia.

Energy companies in Hungary, the Czech Republic, the UK, Russia, the US and New
Caledonia in the South Pacific Ocean have confirmed reservations for 27 Trent
60 engines. When all the reservations become firm contracts, the potential
value of business at today's list prices exceeds $500 million, including the
orders from Belgium and Australia.

SPE in Belgium, which is currently installing two Trent 60-powered genset
packages ordered in 2006 for its Ham power station near Ghent, has selected two
additional Trent 60 Wet Low Emissions (WLE) dual fuel machines for the Angleur
power station, near Liège, Wallonia.

Babcock and Brown Power (previously Alinta Energy) in Australia has ordered a
second Trent 60 dual-fuel unit to provide power for a remote iron ore mine
operated by the Anglo-Australian mining company BHP Billiton, the world's
largest mining company, at the Newman mining township in the Pilbara region of
Western Australia.

Two US power project development companies have reserved 18 Trent 60 WLE dual
fuel engines for new power generation projects they will be undertaking in the
Northeastern part of the country.

The largest single number of engine reservations - ten in total - is from an
energy company based in Baltimore, for which final installation locations have
not yet been released. An East Coast energy marketer has specified eight
engines.

Reservations for the remaining nine engines are from electrical utilities and
power project companies in the Czech Republic, Hungary and Russia, - these
would be the first Trent units for Central Europe - the UK and the French
territory of New Caledonia in the South Pacific.

Charlie Athanasia, Vice-President of Power Generation for the Rolls-Royce
energy business said: "These worldwide customers have expressed their interest
in the Trent because of its high simple cycle efficiency and power density.
This translates into lower operating and installation costs thus enhancing to
total life cycle value to our customers.

"We have now sold or received reservations for Trent units to operators in 17
countries. The Trent 60 not only provides the extra power valued by our
customers, but its lower emissions levels will benefit the environment."

Customers in Canada, Chile, China, Denmark, France, Germany, Israel, Qatar and
Sharjah have ordered Trent power packages.

The Trent 60 engine has been developed for power generation and mechanical
drive applications from the three-shaft Trent 800 aero engine, which produces
up to 95,000 lb thrust. It draws on the experience of more than 11 million
hours of commercial airline operation accumulated by nearly 450 Trent 800
engines, and by over 26 million hours achieved by all versions of the Trent
aero engine.

Producing up to 64MW of electric power in simple cycle service at 42 per cent
efficiency, the Trent 60 has set new standards in power output and fuel
economy, producing higher thermal efficiency and output power than previous
aero- derived machines.

Notes to editors:

 1. The Trent 60 gas turbine contains a high degree of commonality with its
    aero parent, benefiting from the three-shaft technology, a concept unique
    to Rolls-Royce. The engineering principle behind the three shaft design
    involves low pressure (LP), intermediate pressure (IP) and high pressure
    (HP) systems, each comprising a number of compressor and turbine stages
    mounted on independent shafts, which can run at their optimum aerodynamic
    speeds.
   
 2. The key difference between the Trent 60 and aero Trent 800 is the removal
    of the aero engine's large wide-chord fan driven by its own LP turbine at
    the rear of the engine. It is replaced with a new two-stage LP compressor
    with variable inlet guide vanes. The Trent 60 engine retains the core of
    the aero engine - the IP and HP compressors and turbines.
   
 3. The engine is designed to meet stringent environmental requirements and is
    available with a Dry Low Emissions (DLE) or Wet Low Emissions (WLE)
    combustion system. In addition, Inlet Spray Intercooling (ISI) can also be
    incorporated to increase the power output up to 64MW. This system uses a
    spray of water at the intake to reduce the engine temperature across the
    three stages of compressor.
   
 4. Incorporating the Trent 60 engine into a self contained package for
    electrical generation or mechanical drive applications offers operators
    rapid on-line power in a modular package at a low initial cost. Designed
    with a modular concept, it allows not only for quick installation but also
    for ease of maintenance in the field.
   
 5. With over 160 million hours of operating experience, over 4,000
    Rolls-Royce industrial gas turbine packages have been ordered by customers
    in nearly 80 countries.
   
 6. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy.
   
 7. Rolls-Royce is working hard to improve the environmental impact of its
    products. Each year, in collaboration with its partners, it invests over
    £800 million on research and development, two thirds of which has the
    objective of reducing the environmental impact of its products. The primary
    technology investment area is aimed at reducing noise and emissions.
   
 8. 2007 annual sales total were £7.4 billion, of which 55 per cent related to
    aftermarket service revenues. The order book at December 2007 was £45.9
    billion, which together with demand for services, provides visibility as to
    future levels of activity.
   
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