Re Contract

15 March, 2006

           CHINA SOUTHERN PLACES FOLLOW-ON ORDER FOR TRENT 700s WITH           
                         LONG-TERM SERVICES AGREEMENT                          

China Southern Airlines has again chosen Rolls-Royce Trent 700 engines to power
an additional ten Airbus A330 twinjets in the latest phase of its fleet
expansion.

The value of the order, which includes a 10 year TotalCareâ„¢ support package, is
around $600 million.

The Guangzhou-based carrier, which already has four Trent-powered A330s in
service, will take delivery of the new batch of aircraft through 2007 and 2008.

In December last year, China Southern announced the selection of Trent 900
engines for a new fleet of five A380s, with deliveries beginning in late 2007.

Mr Liu Shaoyong, Chairman of China Southern Airlines, said: "The Trent 700 is
the most powerful engine available on the A330, and its high thrust
performance, combined with low cost of ownership, gives us significant
operational flexibility and commercial benefits."

Charles Cuddington, Chief Commercial Officer, Civil Aerospace, Rolls-Royce,
added: "Today's announcement enhances the Trent family's position in the
fast-growing Chinese market and underlines the Trent 700's position as the most
popular engine for A330 operators.

"Follow-on orders send a strong signal, and the fact that China Southern has an
efficient, reliable Rolls-Royce fleet, backed by comprehensive in-service
support, was certainly key to us winning this repeat business."

NOTE TO EDITORS

 1. The Trent 700 has won a 42 per cent share of combined firm and option
    business on the A330 since entering service in 1995, having been ordered by
    a total of 29 customers and operators. The engine has a 100 per cent market
    share on A330s in Hong Kong and the mainland of China, having been selected
    by Air China, China Eastern, Cathay Pacific and Dragonair as well as China
    Southern.
   
 2. Rolls-Royce has a broad presence in China Southern's fleet. In addition to
    Trent-powered A330s, and the A380s to join next year, the airline already
    operates Boeing 757s with the RB211-535 and Embraer ERJ-145 regional jets
    powered by AE3007 engines. The V2500, produced by International Aero
    Engines in which Rolls-Royce is a senior shareholder, is used on China
    Southern's A320 aircraft.
   
 3. Over 150 Rolls-Royce powered aircraft are currently operating with seven
    airlines in the Greater China region.
   
 4. TotalCare contracts provide a comprehensive variety of support services for
    Rolls-Royce large engines customers. Over 60 per cent of the Trent fleet is
    currently managed under TotalCare arrangements. In return for an agreed
    dollar rate per flying hour, Rolls-Royce takes full responsibility for
    engine fleet maintenance
   
 5. Rolls-Royce has offices in Beijing, Shanghai, Dalian and Hong Kong, as well
    as a network of field service representatives across the country. It
    employs over 1,200 people directly or indirectly throughout China,
    including those involved in two joint ventures - Hong Kong Aero Engine
    Services Ltd. (HAESL) and Xian Rolls-Royce Aerocomponents (XRA).
   
For further information please contact:

Martin Johnson
Vice President - Communications
Rolls-Royce
PO Box 31
Derby DE24 8BJ
UK

Email: [e-mail]
Tel: [phone]
Fax: [phone]