Re Agreement

20 July, 2006

HAINAN SELECTION OF TRENT 700 MAINTAINS 100 PER CENT RECORD FOR ROLLS-ROYCE ON 
                               THE A330 IN CHINA                               

Rolls-Royce announced today at the Farnborough International Airshow that the
Hainan Airlines Group has selected the Trent 700 to power a new fleet of five
Airbus A330s in a deal worth $250 millon, including a long-term TotalCare®
services agreement.

Hainan, a new customer for Rolls-Royce, will lease the aircraft from
International Lease Finance Corporation (ILFC), in an agreement which is
incremental business for
Rolls-Royce. The selection of the Trent 700 ensures that Rolls-Royce maintains
its 100 per cent record of powering all A330s in mainland China and Hong Kong
with a fifth campaign win in a row.

Deliveries will begin in November 2007.

Wang Jian, Vice Chairman of Hainan Airlines Group, said: "It was clear from our
evaluation that the Trent 700 will deliver outstanding levels of performance
and reliability on our A330s. We welcome this as the start of a broad,
long-term relationship with Rolls-Royce which will cover all aspects of our
Trent operation."

Mick Forey, Senior Vice President, Customer Business for Rolls-Royce, added:
"Hainan is the fastest growing airline in the world's fastest growing aviation
market. We're proud to welcome Hainan to the Rolls-Royce family of customers -
and at the same time preserve our record of having the Trent 700 on all the
100-plus A330s operating, or on order, in China."

NOTE TO EDITORS:

 1. The Trent 700 is the market leader on the A330 with a 44 per cent share of
    orders and 30 customers and operators.
   
 2. Rolls-Royce powered aircraft are currently operating with ten Chinese
    airlines, including those based in the Hong Kong and Macao SARs.
   
 3. China, where Rolls-Royce has had a presence for more than 40 years, is a
    significant market for the company's aviation, marine and energy products,
    and a manufacturing partner of growing importance. Rolls-Royce has offices
    in Beijing, Shanghai, Dalian and Hong Kong, and recently opened a new
    marine facility in Shanghai. The company is also involved in two joint
    ventures - Hong Kong Aero Engine Services Limited (HAESL) in Hong Kong, and
    Xian Rolls-Royce Aerocomponents (XRA) in Xian.
   
 4. Rolls-Royce is working with the CAAC on the Senior Executives `Top 300'
    development programme, which this year celebrated its 10th anniversary, and
    the signing of a 10-year extension.


For further information contact:

Annalie Brown
Communications Manager - Civil Aerospace
Rolls-Royce
Mob: [phone]
Email: [e-mail]
Farnborough International Airshow

Hall 4, Stand G17
Chalet D1-4
Tel: [phone]