Re Contract

20 July, 2004

            ROLLS-ROYCE ANNOUNCES $400 MILLION ORDER FOR TRENT 500             

Rolls-Royce announced today (20 July) that it had won Trent 500 business at a
list price value of $400 million to power eight Airbus A340-500 and -600
aircraft for Abu Dhabi's Etihad Airways.

The airline has also placed orders for four Airbus A380s and 12 A330-200s.
Deliveries to Etihad are to begin in 2006 for the A330-200s and A340-500s and
in 2007 for the A340-600s and A380s. The engines for the A330 and A380 orders
have yet to be selected.

Speaking at the Farnborough Air Show, Charles Cuddington, Managing Director -
Airlines, Rolls-Royce, said: "We are obviously delighted by today's
announcement which not only makes Etihad the fourteenth customer for the Trent
500 but also gives us an opportunity to play a major part in Etihad's rapidly
expanding network."

Eithad Airways has already ordered two Trent 700-powered A330s, leased from
CIT.

The Trent 500 is the sole powerplant for growth versions of the four-engined
A340 which have been ordered by 14 customers. A 53,000lb thrust version powers
the ultra-long-range A340-500 while a 56,000lb thrust variant is used on the
higher capacity -600 aircraft.

In June, an A340-500 set world time and distance records for a non-stop
commercial route by flying from Singapore to New York in 18 hours 18 minutes.

This month the Trent 500 fleet world wide celebrates its second anniversary in
service, and recently passed the landmark of half a million flying hours.

Corporate note to editors

Rolls-Royce operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It is investing in technology and capability that
can be exploited in each of these sectors to create a competitive range of
products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years. The company now has a
total of 54,000 gas turbines in service worldwide. The investments in product,
capability and infrastructure to gain this market position create high barriers
to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 50 navies. The company has energy
customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of
which 21,000 are in the UK. Forty percent of its employees are based outside
the UK - including 5,000 in the rest of Europe and 8,000 in North America.

The large installed base of engines generates demand for the provision of
services. A key element of the company's strategy is to maximize services
revenues, which have increased by 60 percent over the past five years, by the
provision of a comprehensive portfolio of services.

Annual sales total nearly £6 billion, of which 50 percent are services
revenues. The order book is over £18 billion, which, together with demand for
services, provides visibility as to future activity levels.

For further information contact:

Neil Williams

Rolls-Royce Communications

Chalet: D1-4

Stand: Hall 4, G10

[e-mail]

Tel: [phone]

Fax: [phone]

Office: (Derby): 44 (0)1332 269911