Re Contract

16 June 2009

          ROLLS-ROYCE TO POWER AIRASIA X IN ORDER WORTH UP TO $1.8BN           

Rolls-Royce, the global power systems company, will power AirAsia X aircraft in
an order worth up to US$1.8bn at list prices.

Trent XWB engines have been selected for 10 firm and five option 
Airbus A350 XWB aircraft ordered by AirAsia X. In addition, the airline has 
ordered Trent 700EP (Enhanced Performance) engines for 10 A330 aircraft already 
on order. All engines ordered will include TotalCare® long term service agreements.

The Trent XWB is the fastest-selling member of the Trent engine family and the
most fuel efficient. The Trent 700EP has the best performance, lowest emissions
and lowest fuel burn on the A330. Today's announcement brings the total number
of Trent 700EP-powered A330s ordered by AirAsia X to 25.

The new aircraft will help Kuala Lumpur-based AirAsia X, a low-cost, long-haul
operator, extend its network capability, particularly for routes into Europe.

Azran Osman Rani, Chief Executive Officer, AirAsia X, said: "Our selection of
these aircraft and engine combinations is a further step in our strategy to
develop and succeed with low-cost long-haul operations. The efficiency of the
Trent engine technology we have chosen will support our drive to keep costs to
a minimum while also minimising environmental impact."

Jim Sheard, Rolls-Royce Senior Vice President -- Asia Pacific and Africa, said:
"We are delighted AirAsia X has selected Trent power for its future growth
plans, selecting Trent XWBs for the first time and showing continued commitment
to the Trent 700, following selection of the engine for the initial order of 15
A330s two years ago."

Rolls-Royce has a leading 50 per cent market share on modern, widebody
aircraft, with more than 1,500 Trent engines in service on more than 550
aircraft and a further 2,500 on order. Each of the six members of the Trent
family have either been the first or launch engine on the airframe, or have
gone on to take the leading market share.

AirAsia X is the low-cost long-haul affiliate of AirAsia, named the World's
Best Low Cost Airline by Skytrax.

Notes to Editors:

 1. 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 of
    these sectors, Rolls-Royce offers value-added long-term service agreements 
    for customers and operators.

 2. In 2008, Rolls-Royce and its partners invested £885 million on research and
    development, two thirds of which had the objective of further improving the
    environmental aspects of its products, in particular the reduction of noise 
    and emissions.

 3. Annual sales were £9.1 billion in 2008, of which 52 per cent came from
    services revenues. The firm and announced order book at the end of 2008
    stood at £55.5 billion, providing visibility of future levels of activity.
   
 4. AirAsia X, an affiliate of AirAsia with shareholders including the Virgin
    Group and AirAsia Berhad, is the low-cost long-haul airline launched in 
    January 2007 which commenced commercial services in November 2007. AirAsia X 
    aims to cover destinations which are more than four hours in flight duration 
    from Kuala Lumpur, complementing the existing AirAsia network and offering 
    daily point-to-point frequencies from Kuala Lumpur to popular destinations in
    Australia, North Asia, India, the Middle East and Europe.

 5. 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. It has accumulated more than 10 million
    hours of operating service. The Trent 700EP further reduces engine fuel
    burn by a further 1.3 per cent.
   
 6. TotalCare®, tailored for individual operators, offers a range of services
    from Rolls-Royce covering all aspects of asset management in support of its 
    Civil Aerospace products. Building on the company's knowledge, experience and
    infrastructure, these services include elements such as predictive maintenance,
    logistics management, and global repair and overhaul offerings. TotalCare® can
    remove uncertainties from engine management and improve operational reliability
    for operators through a mutually aligned business relationship.

 7. Rolls-Royce has had a significant presence in Malaysia since Rolls-Royce
    aero engines first powered the Comet and F27 aircraft in the 1960s. Today, the
    company's extensive product range is active in Malaysia across all four of its
    business sectors, with Rolls-Royce products available on more than 220
    platforms. Most recently, Rolls-Royce signed a £75 million MissionCare™ long
    term services contract with the Royal Malaysian Air Force (RMAF) to support the
    Adour engines which power its fleet of Hawk aircraft.

For further information please contact:

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

Amanda Price
Investor Relations Manager
Rolls-Royce plc
Tel:[phone]
[e-mail]