Re Agreement

17 July, 2006

 ROLLS-ROYCE AND AIRBUS CONCLUDE PRELIMINARY AGREEMENT ON TRENT ENGINE FOR NEW 
                                   A350 XWB                                    

Rolls-Royce has concluded a preliminary agreement to supply a next-generation
Trent engine for the new A350 XWB twinjet being offered by Airbus.

The engine, the sixth variant in the Trent series, would be capable of powering
all versions of the aircraft currently proposed.

Mike Terrett, President - Civil Aerospace at Rolls-Royce, said: "As a result of
positive discussions with Airbus, we have concluded a preliminary framework
agreement to make a new member of the Trent family available on the A350 XWB.

"Establishing a position on this programme is important for Rolls-Royce. It
broadens our excellent working relationship with Airbus through a significant
new venture, and provides a strong platform as we aim to maintain our position
as the leading engine supplier for the new-generation widebody market."

Engine design would again be based around the three-shaft architecture unique
to all Rolls-Royce large engines, used throughout the Trent family as well as
the earlier RB211 series.

The new programme would be subject to board approval.

NOTE TO EDITORS:

 1. Trent engine variants power three current Airbus aircraft. The Trent 700 is
    the market leader on the A330 with a 44 per cent share of orders and 29
    customers/operators. The Trent 500 is the sole powerplant on growth
    versions of the four-engined A340 which began commercial operations in
    2002. The Trent 900 is the only engine currently powering the A380 through
    its successful flight testing programme.
   
 2. Rolls-Royce is a senior shareholder in International Aero Engines (IAE)
    which produces the V2500 engine for A320 series aircraft. IAE has more than
    100 customers in 35 countries, with over 5,000 engines delivered or on
    order.
   
 3. Rolls-Royce has an order book of £24.4 billion and a turnover last year of
    £6.6 billion, of which 53 per cent came from civil aerospace. Income from
    services currently represents 59 per cent of civil aerospace sales.
   
For further information:

Martin Johnson
Vice President, Communications
Rolls-Royce
Email: [e-mail]
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Hall 4, Stand G17
Chalet D1-4, Row D
Tel: [phone]