Re Contract

13 September 2006

           TRENT TO POWER DREAMLINER FLEET FOR CHINA'S FLAG CARRIER            

Air China has chosen Rolls-Royce Trent 1000 engines to power its new fleet of
15 Boeing 787 Dreamliners.

The deal, which marks the Trent 1000's first selection by a Chinese carrier, is
valued at $800 million, including a long-term TotalCare® maintenance agreement.
Deliveries of the aircraft will begin in June 2008.

Mr Li Jiaxiang, Chairman of Air China, said: "The decision to select the
Rolls-Royce Trent 1000 was taken after a careful evaluation and successful
negotiation. It meets the operational requirements of our Boeing 787 fleet, and
the choice will be beneficial to Air China's development. Air China and
Rolls-Royce have a well established collaborative relationship, and we believe
that this relationship will broaden in future."

Simon Robertson, Chairman of Rolls-Royce, said: "Success in the world's fastest
growing aviation market carries a high level of strategic importance, and this
announcement by the national airline sends a very positive message.

"Having also selected a different version of the Trent for its Airbus A330s,
Air China has re-confirmed its faith in the Trent series by this latest
decision. We're delighted that the programme's launch order in China comes from
the country's flag carrier."

Air China began taking deliveries this year of 20 Trent 700-powered A330s. The
airline also operates Boeing 757s with Rolls-Royce RB211-535 engines.

Rolls-Royce engines are in service with ten Chinese airlines, including those
based in Hong Kong and Macao.

NOTE TO EDITORS:

 1. The Trent 1000 will be launch engine on all variants of the Boeing 787. ANA
    will begin operating the 787-8 in mid 2008, followed by the short-range
    787-3 in 2010. In the same year, Air New Zealand plans to enter service
    with the 787-9.
   
 2. Firm and option orders have now been placed for 154 Trent-powered 787s by
    eight airlines and aircraft leasing companies
   
 3. The first Trent 1000 ran on schedule in February this year. The engine's
    maiden flight, on a Boeing 747-200 flying test bed, will take place in the
    first quarter of 2007
   
                                                                    

 4. Rolls-Royce has been present in China for more than 40 years. China is a
    significant market for the company's aviation, marine and energy
    businesses, and an important manufacturing partner. Rolls-Royce has offices
    in Beijing, Shanghai, Dalian and Hong Kong, and recently opened a new
    marine facility in Shanghai. It is involved in two joint ventures - Hong
    Kong Aero Engine Services Ltd. (HAESL), and Xian Rolls-Royce Aerocomponents
    (XRA).
   
 5. Rolls-Royce is working with the CAAC on the Senior Executives `Top 300'
    development programme, which this year marked its tenth anniversary with
    the signing of a 10-year extension.
   
For further information contact:

Gary Atkins

Communications Manager

Rolls-Royce plc

PO Box 31

Derby DE24 8BJ

UK

Tel: [phone]

[e-mail]