Re Contract

23 December, 2008

          ETIHAD EXPANDS ROLLS-ROYCE TRENT FLEET WITH NEW A330 ORDER           

Rolls-Royce announced today that Etihad Airways, the Abu Dhabi-based national
airline of the United Arab Emirates, has chosen the Trent 700EP to power a
further eight Airbus A330 aircraft. The Trent 700EP is the latest and more
fuel-efficient version of the best-selling engine for the A330.

The value of the engine business, including a TotalCare® long-term services
contract, is $575 million at list prices.

The A330 aircraft, which will be delivered between 2009 and 2011, will bring
Etihad's Rolls-Royce powered A330 fleet to 24.

The Trent 700 is the only engine designed specifically for the A330. With over
ten million hours in service, it also represents the lowest noise, lowest
emission and most efficient fuel burn for engine types fitted to the aircraft.
Recent improvements include increased fuel efficiency resulting in a
significant 1.3 per cent improvement in fuel consumption on new build engines
and a 1.0 per cent improvement on engines fitted with the EP retrofit kit.

Mark King, President, Civil Aerospace for Rolls-Royce, said today: "Etihad is
an ambitious, fast-moving airline and this order for more Trent 700s
demonstrates its confidence in the Trent family. We are building on a
relationship that began when the airline began operations in 2004 and these new
aircraft with improved Trent 700EP performance will complement Etihad's growing
Trent-powered fleet. The contract further endorses the added value our
aftermarket services bring to customers."

James Hogan, Chief Executive of Etihad Airways, said: "This continuation of our
relationship with Rolls-Royce helps us to develop our state-of-the art fleet,
which in turn allows us to sustain a world-class service to our customers."

Etihad already has nine A340s powered by the Trent 500 supported by TotalCare
contracts on order or in service. The airline also has two A340s due for
delivery in 2009. In addition, the airline has ordered Trent XWB engines for 25
Airbus A350 aircraft.

The Trent 700 has 53 per cent of the A330 market and the continuous improvement
and incorporation of advanced Trent family technology will offer increased
benefits to customers, including the lowest fuel burn of any engine on the
A330.

NOTE TO EDITORS:

1. 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.

 2. The Trent 700 is the only engine that has been specifically designed for
    the A330 aircraft, resulting in better performance, higher reliability and
    improved maintenance costs. It was the first engine in the Trent family to
    enter service in March 1995.
   
 3. The Trent engine family has been ordered by many of the Middle East
    airlines, including Qatar, Emirates, Etihad and Gulf Air, powering Boeing
    777s, A330s and A340s. The International Aero Engines V2500, in which
    Rolls-Royce is a principal shareholder, is also operated widely.
   
 4. In addition to its business with Etihad, Rolls-Royce has a number of
    agreements with companies based in the UAE, including Abu Dhabi Ship
    Building, Abu Dhabi Aircraft Technologies and Al Taif, and is involved in
    the philanthropic work of the Emirates Foundation.
    Rolls-Royce has also entered into a Memorandum of Understanding with the
    Emirates Nuclear Energy Corporation (ENEC) to work together to assess Abu
    Dhabi's industrial capabilities to support a potential civil nuclear power
    programme.
   
 5. Rolls-Royce is working hard to improve the environmental impact of its
    products. Each year, in collaboration with its partners, it invests over
    £800 million on research and development, two thirds of which has the
    objective of reducing the environmental impact of its products. The primary
    technology investment area is aimed at reducing noise and emissions.
   
 6. TotalCare agreements, tailored for individual operators, offer a range of
    services extending to aspects of support such as latest predictive
    maintenance, asset and logistics management, as well as repair and
    overhaul. TotalCare offers the opportunity to remove uncertainties from
    engine management and provides airlines with greater financial confidence
    from managing predictable costs.
   
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For further information please contact:

Mark Alflatt
Director of Financial Communications
Rolls-Royce Group plc
Tel: [phone]
Email: [e-mail]

Ian Bustin
Head of Communications - Civil Aerospace
Rolls-Royce Group plc
Tel: [phone]
email: [e-mail]