Re Contract

5 October, 2006

             MONARCH CROWNS 25-YEAR ROLLS-ROYCE RELATIONSHIP WITH              
                             TRENT 1000 SELECTION                              

UK leisure airline, Monarch Airlines, has selected the Rolls-Royce Trent 1000
to power its new fleet of Boeing 787 Dreamliners. The engine deal, which is for
six firm aircraft and four purchase rights, includes a lifetime TotalCare®
service agreement and is valued at $1 billion at list prices.

The Trent-powered 787 twinjets, scheduled for delivery from 2010, will form the
core of Monarch's long-haul operation, replacing some of the older aircraft it
currently operates.

The deal represents the first UK Trent 1000 order and comes as Monarch and
Rolls-Royce celebrate 25 years of working together.

Peter Brown, Chief Executive Officer of Monarch Airlines, said: "Economic and
environmental performance is a main driver for us and was key to the selection
of the Trent 1000 for our 787s. Total cost of ownership is vital to preserving
a healthy operation while fuel efficiency reduces the environmental impact.
With the combination of the Trent 1000 and TotalCare, we are confident we have
the most effective solution, both for our business and for the environment."

Chris Cyr, Senior Vice President for Rolls-Royce, added: "The Trent 1000 has
been optimised solely for the 787 and provides the best balance between new
technology and experience to deliver the best operating economics for Monarch.
As the airline is a long-standing Rolls-Royce customer, we are proud to partner
with them again to launch the Trent 1000 in the UK."

Monarch currently operates nine Rolls-Royce powered aircraft, comprising two
Airbus A330s and seven Boeing 757s.

NOTE TO EDITORS

 1. 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.
   
 2. The Trent 1000 is the launch engine on all variants of the 787. ANA will
    begin operating the 787-8 in mid-2008 and will also introduce the
    short-range 787-3 variant in 2010. Air New Zealand will launch the 787-9
    into service, also in 2010.
   
 3. Along with this selection, firm and option orders have been placed for a
    total of 164 Trent 1000-powered Boeing 787s by ANA, Air New Zealand,
    Icelandair, LOT Polish Airlines, Northwest Airlines, Blue Panorama, Air
    China and leasing companies ILFC, Pegasus and LCAL.
   
 4. The Trent 1000 is the fifth member of the Trent series, the first of which
    entered service in 1995. By the time the Trent 1000 begins commercial
    operations, previous versions of the Trent will have accumulated around 35
    million flying hours.
   
 5. There are currently six engines in the development programme that have
    completed a range of ground runs, including type tests, endurance and
    telemetry testing, and flutter and crosswind demonstrations at the
    Rolls-Royce outdoor test facility at Hucknall, Nottinghamshire in the UK.
   
For further information contact:

Annalie Brown

Communications Manager - Civil Aerospace

Rolls-Royce plc

Derby

UK

Tel: [phone]

Email: [e-mail]