Re Contract

14 October, 2004

        ROLLS-ROYCE WINS $450 MILLION ORDER FROM CHINA EASTERN AIRLINES        

Rolls-Royce announced today (14 October) that it had won a $450 million (£250
million) order for Trent 700 engines to power 20 Airbus A330-300 twinjets for
China Eastern Airlines.

The airline currently has five Trent 500-powered Airbus A340-600 aircraft
which, when they first entered service last year, were the first Trent engines
delivered to mainland China.

Charles Cuddington, Managing Director of the Rolls-Royce Airlines business
said: "China continues to be a key market for Rolls-Royce and, as one of the
country's top three airlines, we are delighted to see China Eastern again
choose Trent power.

"The Trent 700 is firmly established as market leader on the Airbus A330 and
this order further strengthens that position."

The A330-300, powered by two 70,000lb thrust Trent 700s, is capable of carrying
335 passengers up to 5,650 nautical miles. The aircraft have been chosen to
meet the growing aviation traffic demands in China.

Since its entry in to service in 1995, the Trent 700 has established the
biggest customer base on the A330 with 28 operators, giving it a 39 per cent
market share. The Trent family has won a 50 per cent share of the modern,
wide-body market.

Corporate note to editors

Rolls-Royce operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It invests 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 per cent 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 per cent over the past five years, by the
provision of a comprehensive portfolio of services.

Annual sales total nearly £6 billion, of which more than 50 per cent are
services revenues. The order book is more than £19 billion, which, together
with demand for services, provides visibility as to future activity levels.

For further information contact:

Neil Williams

Manager, Communications

Rolls-Royce

PO Box 31

Derby DE24 8BJ

UK

Tel: [phone]

Fax: [phone]

Email: [e-mail]