Re Contract

28 June, 2007

           ROLLS-ROYCE TO TAKE TOTALCARE OF MONARCH RB211-535 FLEET            

Rolls-Royce has agreed a new TotalCare long-term services contract with Monarch
Airlines, under which it will be responsible for support of the RB211-535s that
power Monarch's seven Boeing 757s.

The package enables Monarch to hand over full responsibility for management of
the engine fleet at an agreed dollar rate per flying hour.

Steve Redden, Senior Vice President - Customer Business for Rolls-Royce, said:
"TotalCare has been designed with customers, and their assets, in mind. Our
unique knowledge of the RB211 fleet will help Monarch to minimise the
unpredictability of the maintenance regime, and provide complete visibility of
costs."

Norman Creveul, Managing Director for Monarch Engineering, added: "The
TotalCare solution has been customised to be a perfect fit for our business,
and will help us to drive down the cost of ownership."

The airline has been a customer of Rolls-Royce since taking delivery of its
RB211-powered 757s over 20 years ago and currently operates nine Rolls-Royce
powered aircraft, comprising two Airbus A330s in addition to the 757s. The
airline also has six Boeing 787s on order, for which it has selected the Trent
1000.

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NOTE TO EDITORS:

 1. TotalCare agreements, tailored for individual operators, offer a range of
    services extending to aspects of support such as latest predictive
    maintenance, asset and logistics management, as well as repair and
    overhaul. TotalCare offers the opportunity to remove uncertainties from
    engine management and provides airlines with greater financial confidence
    from managing predictable costs.
   
 2. Founded in 1968, Monarch Airlines is part of the Monarch group of companies
    together with Monarch Aircraft Engineering Ltd and tour operators Cosmos
    and seat-only specialists Avro. Monarch is one of the UK's largest leisure
    airlines and the principal independent supplier of charter seats to tour
    operators large and small, flying to around 100 destinations across Europe,
    America, Africa and Asia from the UK's principal and regional airports.
   
 3. The RB211-535 has been chosen by 80 per cent of Boeing 757 customers,
    maintaining a share of nearly 60 per cent of all engine orders placed for
    that aircraft.
   
 4. The RB211-535 was introduced in 1984. The 1,300 engines, in service with
    over 80 operators, have accumulated more than 40 million hours of
    operation. Powering over 600 757s around the world, an RB211-535 powered
    aircraft takes off or lands every 25 seconds. The average time to a first
    shop visit is around 20,000 hours.
   
For further information:

Mark Alflatt
Director - Financial Communications
Rolls-Royce plc
Tel: [phone]
Fax: [phone]
Email: [e-mail]