Re Agreement

10 February 2005

               AIR DECCAN V2500 ORDER WORTH $200M TO ROLLS-ROYCE               

Rolls-Royce announced today (10 February) that its share of Air Deccan's order
for the IAE International Aero Engines V2500 engine, including a long-term
Fleet Hour Agreeement, to power its fleet expansion of 30 Airbus A320s is worth
$200 million.

The total value of the deal to IAE, in which Rolls-Royce is a principal
shareholder, is $600 million.

India's Air Deccan already operates seven V2500-powered A320s, serving domestic
trunk routes. Delivery of the first of the additional 30 A320s is scheduled for
2007.

IAE President Mark King, speaking at Aero India in Bangalore today, said: "Air
Deccan is India's first low-cost carrier and we are pleased to be a part of the
company's expansion. With its low cost fare structure, Air Deccan is
revolutionsing air transportation and also establishing a solid platform for
continued, sustainable economic growth in India.

"This selection further underlines the appeal of the V2500 to operators of the
Airbus A320 family and to low cost carriers in particular.

"For the past eight years, our average market share of the A320 family has been
56 per cent and our share of the low cost carrier market has been 64 per cent -
testimony to the reliable, cost-effective and fuel efficient V2500. "

Air Deccan Managing Director Captain Gopinath said: "Since its entry into
service with Air Deccan in 2004, the V2500 operation has been flawless. The
reliability and economic characteristics of the V2500 have been critical to our
success to date and the fact that this is repeat business for IAE pays them and
their product a significant compliment. The ongoing partnership between Air
Deccan and IAE will, we believe, help us to achieve our vision of affordable
air transportation in India for the common man."

The 22,000-33,000lb of thrust V2500-A5 is available in seven different thrust
settings to power the Airbus A319, A320 and A321 family of aircraft as well as
the A319 Corporate Jet.

For further information please contact:

Gary Atkins

Communications Manager

Tel [phone]

Email: [e-mail]