Re Contract

16 July, 2008

         ETIHAD AIRWAYS EXPANDS ROLLS-ROYCE TRENT FLEET WITH A350 XWB          

Rolls-Royce said today that the potential value of the Etihad Airways' order
for up to 50 Airbus A350 XWB aircraft powered by Trent XWB engines, with a long-term
TotalCare® support agreement if selected, is $4.5 billion.

The aircraft order, announced at the Farnborough Airshow on Monday, comprises
firm orders for 25 firm A350 XWBs, with options for ten more aircraft and
purchase rights for a further 15 aircraft.

James Hogan, Chief Executive of Etihad Airways said today: "We are delighted to
be extending our relationship with Rolls-Royce. The Trent family is helping us
develop a state-of-the-art fleet to support the airline's contribution to the
growth of Abu Dhabi, the capital of the United Arab Emirates."

Mark King, President - Civil Aerospace at Rolls-Royce, said: "The Trent XWB
represents the latest technology available to the industry. TotalCare is a
highly valued, tailored, aftermarket service and will enable Etihad Airways to
continue to pursue its ambitious growth plan. We are pleased to be able to
support its objectives."

The first Trent XWB is scheduled to begin ground testing in 2010 and will make
its maiden flight on the new Airbus twinjet in 2012.

The Trent XWB, the sole engine currently available for the Airbus A350 XWB, is
available in a range of thrusts from 74,000 to 92,000 lb. A single engine type
will power all versions of the A350 XWB. By the time the Trent XWB enters
service, Trent series engines will have accumulated more than 75 million flying
hours.

NOTE TO EDITORS:

 1. Rolls-Royce's strategy is to create an engine for every airframe, which has
    resulted in the Trent XWB being tailored specifically for the aircraft. The
    strategy has also given Rolls-Royce has a leading 50 per cent market share
    on modern widebody aircraft, with more than 1,400 Trent engines in service
    on over 550 aircraft and around a further 2,500 on backlog. Each of its six
    Trent engines has either been the first or launch engine on the airframe,
    or has gone on to take the leading market share.
   
 2. Revenue from aftermarket services comprises 63 per cent of Rolls-Royce
    Civil Aerospace revenues. Today, more than 55 per cent of the company's
    modern jet engine fleet is covered by TotalCare® or CorporateCare® service
    agreements. With around 80 per cent of civil engine orders announced by
    Rolls-Royce in the past 18 months incorporating service arrangements, the
    proportion of fleet coverage will continue to rise, giving increased
    visibility of revenues.
   
 3. Rolls-Royce has a growing presence in the Middle East, where it is playing
    an important role in the development of the region across all the Group's
    sectors - civil aerospace, defence aerospace, marine and energy.
   
 4. In 2005 the Group signed a Memorandum of Understanding with Mubadala to
    explore a number of mutually beneficial opportunities across the Middle
    East. The relationship between Rolls-Royce and Abu Dhabi began more than 30
    years ago with Avon gas turbines which have been used by Abu Dhabi to pump
    its oil since 1973. Rolls-Royce aero gas turbines have been maintained in
    the Abu Dhabi Aircraft Technologies facilities, formerly GAMCO, in Abu
    Dhabi for more than 20 years.
   
 5. Rolls-Royce is participating in the Masdar vision to position Abu Dhabi as
    a world-class research and development hub for new energy technologies. It
    is being managed by the Abu Dhabi Future Energy Company (ADFEC), a
    government-owned organisation wholly-owned by Mubadala Development Company.
   
 6. In April 2008, Rolls-Royce signed a MoU with Al Taif Technical Services,
    which is owned by Mubadala, under which it will provide service support to
    Rolls-Royce Distributed Generation Systems.
   
 7. The Group has more than 1,000 military engines in operation in the Middle
    East, covering all the defence market sectors, including the Adour,
    powering Hawk trainers and the T56 on C-130 transport aircraft, as well as
    numerous helicopter engines. The Royal Saudi Air Force operates Tornado,
    Hawk and C-130 aircraft powered by
    Rolls-Royce and its partners. It will also operate the EJ200 powered
    Typhoon.
   
 8. Marine products are in service throughout the commercial and naval sectors.
    UT Design offshore support vessels are being built for Abu Dhabi.
   
More information on Rolls-Royce in the Middle East is available on
www.rolls-royce.com/middle_east/default.htm

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For further information please contact:

Mark Alflatt
Director of Financial Communications
Rolls-Royce plc
Phone: [phone]
E-mail: [e-mail]

Nicky Louth-Davies
Director Corporate Communications
Rolls-Royce plc
Phone: [phone] 
E-mail: [e-mail]