Re Contract

6 October, 2005

                ROLLS-ROYCE TO SUPPLY NEW TRENT ENGINE FOR A350                

Rolls-Royce has reached agreement with Airbus to supply a new variant of its
Trent engine series for the A350 airliner.

The sixth member of the Trent family, to be known as the Trent 1700, will be
available for A350 deliveries from mid 2011.

Mike Terrett, President, Civil Aerospace, Rolls-Royce, said: "This is an
important development which allows us to extend our successful relationship
with Airbus on all their new widebody programmes. We have strong,
market-leading or sole source positions with the Trent on the A330, latest
A340s, and the A380, and we are equally confident that the Trent 1700 will
establish itself successfully on the A350.

"Like its predecessors, the Trent 1700 will follow a derivative, cost-effective
development route, and bring world-best technologies and operating economics to
complement this exciting new aircraft."

The Trent 1700 will be the only engine specifically developed and fully
optimised for the 250-300 seat A350 and will utilise the latest available
technology at entry into service.

Gustav Humbert, President and Chief Executive Officer of Airbus, said: "The
A350 represents a new generation of style and economics. We are confident that
the Trent 1700 will play a significant part in the appeal of this new airliner, and
we're delighted to have reached this agreement with Rolls-Royce."

The new powerplant, which will be developed with a thrust rating of 75,000lb,
will run for the first time in mid 2009. Engine certification is scheduled for
2010, ahead of joint certification for aircraft and engine by the airworthiness
authorities the following year.

NOTE TO EDITORS

 1. Links between Rolls-Royce and Airbus on modern widebody programmes began
    when the Trent 700-powered A330 twinjet entered service in 1995. The engine
    is the market leader on the A330 with a 44 per cent share of orders and 29
    customers/operators.
   
 2. The Trent 500 is the sole powerplant on growth versions of the four-engined
    A340 which began commercial operations in 2002. A total of 155 aircraft
    have been ordered by 16 customers/operators.
   
 3. Currently undergoing a successful flight testing programme on the A380, the
    Trent 900 has a 49 per cent market share of firm and option orders to date
    involving 84 aircraft from 6 customers.
   
 4. Rolls-Royce is a senior shareholder in International Aero Engines (IAE)
    which produces the V2500 engine for A320 series aircraft. IAE has more than
    100 customers in 35 countries, with over 5,000 engines delivered or on
    order.
   
 5. Rolls-Royce has an order book of £21.3 billion and a turnover last year of   
£5.9 billion, of which 51 per cent came from civil aerospace. Income from
services currently represents 59 per cent of civil aerospace sales.

For further information contact:

Martin Johnson
Vice President, Communications
Rolls-Royce
Tel: [phone]
Email: [e-mail]