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The Sagnac interferometry has widely been used to measure rotation frequency. Beyond the conventional single-particle scheme, we propose a multiparticle scheme via Bose condensed atoms. In our scheme, an ensemble of entangled two-state Bose atoms are moved in a ring via a state-dependent rotating potential, and then the atoms are recombined for interference via Ramsey pulses. The phase accumulation time is determined by the state-dependent rotating potential. The ultimate rotation sensitivity can be improved to the Heisenberg limit if the initial internal degrees of freedom are entangled. By implementing parity measurement, the ultimate measurement precision can be saturated, and the achieved measurement precisions approach the Heisenberg limit. Our results provide a promising way to exploit many-body quantum entanglement in precision rotation sensing. [ABSTRACT FROM AUTHOR]