Re Contract

26 October, 2006

                  LUFTHANSA CONFIRMS SELECTION OF ROLLS-ROYCE                  
                            TRENT 700 FOR NEW A330s                            

The Rolls-Royce Trent 700 has been selected in a follow-on order to power a
fleet of five Airbus A330s ordered by Lufthansa. The deal includes a TotalCare
long-term services agreement and is worth around $300 million at list prices.

Deliveries of these new aircraft will begin during the first quarter of 2008.

The Trent 700 has provided consistently reliable service to Lufthansa. Charles
Cuddington, Chief Commercial Officer, Civil Large Engines at Rolls-Royce, said:
"Lufthansa is going through an exciting period of growth in its long-haul
operation and we're pleased that they are relying on Rolls-Royce power for this
expansion. Receiving a repeat order from Lufthansa is a further endorsement of
the Trent 700 and seals our position as the market leading engine maker for
widebody aircraft."

Lufthansa currently operates a fleet of 22 Rolls-Royce powered aircraft,
including 10 Airbus A330-300s in operation and 12 A340-600s, plus a further
five on order, powered by the Trent 500. The airline also has selected the
Trent 900 to power the 15 A380s it has on order.

NOTE TO EDITORS:

 1. The Trent 700 is the market leader on the A330 with a 40 per cent share of
    orders and 32 customers and operators. It was the first Rolls-Royce Trent
    to enter service in March 1995 with Cathay Pacific.
   
 2. The A330-200, powered by two 72,000lb thrust Trent 700 engines, is capable
    of carrying 260 passengers up to 6,650 nautical miles.
   
 3. TotalCare agreements, tailored for individual customers, offer a range of
    services extending to aspects of support such as provision of lease
    engines, as well as repair and overhaul. Rolls-Royce takes full
    responsibility for care of the engine fleet in return for payment by the
    customer of an agreed dollar rate per flying hour.
   
 4. Rolls-Royce and Lufthansa have launched a 50/50 joint venture engine
    overhaul, N3 Engine Overhaul Services (N3EOS), located near Erfurt in
    Thuringia, Germany. Once operational, the €100 million facility will be one
    of the largest and most modern aero-engine maintenance facilities in
    Europe, servicing Trent 500, 700 and 900 engines of Lufthansa as well as
    other European, North American and African airlines.
   
For further information:

Annalie Brown

Communications Manager - Civil Aerospace

Rolls-Royce plc

Tel: [phone]

Fax: [phone]

Email: [e-mail]