Re Contract

15 January, 2009

   ROLLS-ROYCE CONTRACT FOR HUNGARY INCREASES TRENT POWER STATIONS IN EUROPE   

Rolls-Royce announced today that it will supply two Trent 60 gas turbines for a
new power station near Budapest, Hungary, increasing the number of power
stations in service or in development in Central and Eastern Europe using the
Trent to 18.

During 2008, Rolls-Royce won orders for 19 Trent 60 engines from operators in
Central and Eastern Europe, the US and Australasia, making it the most
successful year for the engine.

Including reservations for an additional 18 engines received in 2008, the
number of Trent 60s sold or reserved by operators now totals 57 in 17
countries, for both power generation and oil and gas installations, with 24
engines in service in eight countries.

The latest order for Hungary is for Trent 60 WLE dual fuel gas turbines, to be
installed as part of contract won by Centrax Gas Turbines from Bakonyi
Kombiciklus Eromuepito es Fejleszto Kft (BKCE). They will be installed at the
existing Bakonyi power station in Ajka, west of Budapest, near Lake Balaton.
The site currently houses a power plant that produces between 40 and 60MW,
using a mixture of coal and biomass fuels.

The two gas-fuelled Trent sets will provide an additional 116MW to the local
region after installation and commissioning in 2010. They will also enhance the
power grid by providing stability at times of peak demand.

Charlie Athanasia, Vice-President of Power Generation for the Rolls-Royce
energy business, said: "The Trent 60 is the world's most efficient and powerful
aero derivative gas turbine and delivers electricity at a cost per kilowatt
lower than any other turbine in its class. It offers operators such as BKCE the
best combination of high power density, superior fuel efficiency and fast start
capability available in the market."

Much of the Trent's success is due to the peaking market, where electrical
utilities require a large amount of electricity quickly and efficiently to cope
with sudden high demands. This can best be achieved by using gas turbines and
the exceptionally large power output of the Trent is ideal for the role. In
addition, a number of operators need to install new high efficiency generating
plants quickly because of a lack of investment in recent years.

The two Trent units for BKCE will be housed in packages located outside the
main power station and will feature side mounted exhaust with an available
connection for a waste heat recovery boiler. This will enable the plant to
convert these units for co-generation operation in the future, providing an
increase in both available power and operating efficiency.

The Trent 60 engines for Hungary will be manufactured at the Rolls-Royce plant
in Montreal, Quebec, Canada, during 2009.

NOTES TO EDITORS

 1. Rolls-Royce is a world-leading provider of power systems and services for
    use on land, at sea and in the air. It operates in four global markets -
    civil aerospace, defence aerospace, marine and energy. It has energy
    customers in 120 countries.
   
 2. Bakonyi Kombiciklus Eromuepito es Fejleszto Kft (BKCE) is a
    special-purpose company initially owned by Euroinvest, a venture capital
    investment company owned by one of Hungary's most successful investors,
    Sándor Demján, and Bakonyi power station itself, which is majority owned by
    Euroinvest. More recently, the state electricity company, MVM, has
    purchased a majority stake in BKCE.
   
 3. Centrax will produce the Trent packages at its facility at Newton Abbot,
    Devon, UK, and will supervise the installation and perform the
    commissioning of the packages at Ajka with the support of Rolls-Royce.
   
 4. The Rolls-Royce Trent 60 is currently being installed in new power stations
    being constructed in Australia, Belgium, China, France, Israel, New
    Caledonia, Slovakia, the Czech Republic and the US. Engines already in
    service are in Belgium, Canada, Chile, Denmark, Germany, Qatar, Sharjah,
    the UK and the US.
   
 5. Paroplynovy Cyklus (PPC) Energy A.S. of the Slovak Republic and Moravia
    Energo in the Czech Republic have also selected the Wet Low Emissions (WLE)
    version of the Trent 60 engine to provide cleaner energy at a lower cost as
    part of their modernisation programmes.
   
 6. More than 300 Rolls-Royce aero engines are in service in the Central
    European region. They power a broad range of civil and military fixed-wing
    and rotary aircraft, including passenger aircraft flown by LOT Polish
    Airlines and Malev Hungarian Airlines, helicopters flown by the Polish Air
    Force and military transport aircraft that are either in service or due to
    come into service with the air forces of Bulgaria, Poland and Romania.
   
 7. Rolls-Royce turbines power the frigates of the Romanian Navy and the
    Bulgarian Navy.
   
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