U.S. Power Contracts Worth $28m Won

Rolls-Royce PLC
1 December 1999


ROLLS-ROYCE WINS U.S. POWER CONTRACTS  WORTH $28 MILLION

Rolls-Royce plc has won two contracts to supply a total of seven gas turbine
power generating sets worth $28 million in the United States. Two RB211s will
help meet peak energy demand in Michigan, and five Allison 501-KB7s will
provide power and process steam at a cogeneration plant in Ohio.

All seven of the sets will be manufactured and packaged at Rolls-Royce
facilities and will feature Dry Low Emissions systems which dramatically
reduce output of harmful nitrous oxides and carbon monoxide. 

John Kempster, Managing Director - Power Generation and Oil and Gas for
Rolls-Royce, said: 'These contracts reflect the ideal positioning of
Rolls-Royce within the increasingly deregulated US energy market. Power
producers are interested in small gas turbine projects which meet specific
needs, such as grid peaking and industrial cogeneration. This award brings the
number of Allison 501-KB7s in service or on order to 125.

'Our aero-derivative products, light and easy to operate and maintain, fit
this market trend perfectly and we are seeing great interest in both the
industrial RB211 and Allison 501-KB7 for further projects.'

For further information please contact:

Bill O'Sullivan
Manager - Corporate Communications
Rolls-Royce North America 
Tel [phone]
Fax [phone]
Email: BO'[e-mail]