Re Contract

27 February 2009

              HNA GROUP SIGNS CONTRACT FOR ROLLS-ROYCE TRENT 700               
                      FOR HONG KONG AIRLINES' A330 FLEET                       

HNA Group and Rolls-Royce plc have today signed a contract for Trent 700EP
engines to power Hong Kong Airlines' new fleet of 20 Airbus A330s. The value of
the contract, including a long-term TotalCare® services agreement, is
approximately US$1.2 billion at list prices. A Memorandum of Understanding
(MoU) outlining the contract was announced in January 2008.

HNA Group is a major shareholder in Hong Kong Airlines, which will become a new
Rolls-Royce customer. The Group already operates Trent 700 powered A330-200 and
Trent 500 powered A340-600 aircraft. The Trent 700 engines selected for Hong
Kong Airlines are the latest Trent 700EP (Enhanced Performance) version, which
feature improved fuel and lower emission levels. The airline will take delivery
of its first A330 aircraft in 2010.

Liu Junchun, Executive Vice President of HNA Group, said: "Having experienced
an excellent operational record with the Trent 700s currently in service with
Hainan Airlines, the engine is clearly the best solution for Hong Kong
Airlines' A330 fleet. Its outstanding reliability and operational flexibility
mean it does not limit the routes that our aircraft can operate, giving us and
our passengers maximum choice."

Steve Miller, Vice President of Civil Aerospace - China, at Rolls-Royce, added:
"HNA Group is a major and fast growing airline group in China and this contract
demonstrates the Group's continuing confidence in the value and reliability of
our products and the strength of our long term relationship. This is the launch
of the Trent 700EP in China. The Trent 700EP will deliver HNA Group significant
fuel savings."

The Trent 700 has consistently been demonstrated as the engine of choice for
airlines operating the A330. The Trent 700 has secured over 70 per cent of the
A330 market over the last three years. In China the Trent 700 has been selected
thirteen times by nine customers to power a total of 155 A330s that are either
in service or on order. The engine delivers outstanding levels of performance
and offers the highest available thrust on the A330, maximising revenue
generating capability. Latest technologies also give the engine class-leading
fuel burn that translates into lower emissions.

NOTE TO EDITORS:

 1. HNA Group is a major shareholder in Hong Kong Airlines.
   
 2. HNA Group has also have taken delivery of an order for ten leased Airbus
    A330 aircraft, powered by Trent 700, and is also leasing three Airbus
    A340-600s, powered by Trent 500.
   
 3. The Trent 700 is the only engine on the A330 that has been specifically
    designed for the aircraft, resulting in better lifetime performance,
    reliability and maintenance costs.
   
 4. Trent 700 is also the quietest and cleanest option on the A330, with the
    greatest margin to CAEP 4 legislation.
   
 5. The Trent 700EP (Enhanced Performance) version of the engine improves
    engine performance by reducing fuel burn by a further 1.3 per cent -
    confirming its position as the best for fuel burn as well as thrust and
    noise on the A330.
   
 6. Rolls-Royce is working hard to improve the environmental impact of its
    products. Each year Rolls-Royce, in collaboration with its partners,
    invests over £800 million on research and development, two thirds of which
    has the objective of reducing the environmental impact of its products.
    This technology investment is primarily aimed at reducing noise and
    emissions.
   
 7. Rolls-Royce, a world-leading provider of power systems and services for use
    on land, at sea and in the air, has established a strong position in global
    markets - civil aerospace, defence aerospace, marine and energy. In each
    sector, Rolls-Royce offer value-added long-term service agreements for 
    customers and operators.
   
 8. Rolls-Royce is the leading supplier of engines to China's wide body
    aircraft fleet, and with its associate company International Aero Engines
    has over 400 aircraft in service or on firm order.
   
 9. In addition to its aerospace business in China, Rolls-Royce has a marine
    manufacturing facility in Shanghai. Rolls-Royce compressors pump gas along
    the West-East Pipeline, one of China's most important infrastructure
    projects. The Group also has a successful turbine component joint venture
    in Xian; and is growing its component and materials purchasing in China.  
   
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Rolls-Royce plc
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Corporate Communications 
Rolls-Royce plc 
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