Re Contract

13 June, 2005

  AIR CHINA LIMITED AWARDS $800 MILLION CONTRACT TO ROLLS-ROYCE FOR TRENT 700  
                    ENGINES AND LONG-TERM SERVICE AGREEMENT                    

Air China Limited has selected the Rolls-Royce Trent 700 to power its new fleet
of 20 Airbus A330-200 widebody aircraft. Together with a long-term TotalCare
services agreement for the engines, the total value of the contract is $800
million.

A spokesman for Air China Limited, said: "Air China is very pleased to have
reached this agreement with Rolls-Royce. The Trent 700 engine offers
outstanding reliability and performance. This order marks the beginning of a
much closer relationship between Air China and Rolls-Royce."

Mike Terrett, President - Civil Aerospace, Rolls-Royce, said: "This is a
significant decision by China's flag carrier. Not only does it mark the first
appearance of the Trent engine in Air China's colours, it also strengthens our
presence in the world's fastest growing aerospace market. As the most powerful
engine on the A330, the Trent 700 will provide Air China with excellent
performance from more demanding airports such as Lhasa. This order is a welcome
expression of confidence in Rolls-Royce."

NOTE TO EDITORS

 1. The Air China order takes the Trent 700's market share on the A330 to 42
    per cent, with a total of 30 customers and operators.
   
 2. 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.
   
 3. The A330-200, powered by two 72,000lb thrust Trent 700 engines, is capable
    of carrying 260 passengers up to 6,650 nautical miles.
   
 4. All three major airlines groups in mainland China, Air China, China Eastern
    and China Southern have chosen the Trent 700 to power their A330s.
   
 5. Air China already operates Rolls-Royce RB211-535E4 engines on its fleet of
    13 Boeing 757 aircraft. Air China also operates Airbus A320 series aircraft
    powered by the V2500 engine from International Aero Engines (IAE), a
    consortium in which Rolls-Royce is a principal shareholder.
   
 6. Air China, the flag carrier of the People's Republic of China, is also
    designated as the Partner Carrier for the Beijing Olympic games to be held
    in the summer of 2008.
   
NOTE TO PICTURE EDITORS

Photos of the Trent 700 are available to download at
http://www.rolls-royce.com/media/gallery/civil/civil03.jsp

Visit www.thenewsmarket.com/rolls-royce for b-roll video about this story.
Registration and access to the media is free. You can download a MPEG2 file or
order a Beta SP tape.

For further information contact:

Annalie Brown

Communications Manager - Civil Aerospace

Rolls-Royce

Mob: [phone]

Email: [e-mail]