Re Contract

12 December, 2006

               ROLLS-ROYCE EXPANDS TRENT 1000 BUSINESS WITH LCAL               

Rolls-Royce announced today it has a contract with LCAL, a new and innovative
aircraft leasing company, to provide Trent 1000 engines for nine firm Boeing
787 Dreamliners and up to 11 purchase options.

In November 2005, LCAL and Rolls-Royce announced an initial order for the Trent
1000 for six firm aircraft, which are incorporated into this contract
agreement. The value of the additional engines for three firm aircraft is $96
million at list prices. Delivery of LCAL's first Trent-powered 787s is
scheduled to begin in 2009.

As previously announced, all the engines will be covered by a TotalCareâ„¢
service agreement, which will provide lifetime protection for each powerplant
and is portable between LCAL's customers.

Nick Devall, Executive Vice President - Customer Business at Rolls-Royce, said:
"The Trent 1000-powered 787 provides LCAL with a flexible offering that is
attractive to a wide range of customers. Its unique innovative technology
combined with the benefit of 35 million hours of Trent family experience behind
it upon entry into service, ensures the Trent 1000 offers the highest customer
value and is also the lowest risk option available to customers."

Steve Clarke, President and Chief Operating Officer of LCAL, said: "We decided
to increase our order from six to nine firm aircraft based on the positive
response we have had to the Rolls-Royce Trent 1000 in the marketplace. We see
the lessor-friendly TotalCare agreement bringing significant value to both our
lessees and to ourselves."

NOTE TO EDITORS:

 1. LCAL is an aircraft leasing company with offices in Hong Kong. It is aiming
    to provide customer friendly lease terms on the 787 to airlines worldwide.
   
 2. The Trent 1000 is the launch engine on all variants of the 787. ANA will
    begin operating the 787-8 in mid-2008 and will also introduce the
    short-range 787-3 variant in 2010. Air New Zealand will launch the 787-9
    into service, also in 2010.
   
 3. Along with this selection, firm and option orders have been placed for a
    total of 163 Trent 1000-powered Boeing 787s by ANA, Air New Zealand,
    Icelandair, LOT Polish Airlines, Northwest Airlines, Blue Panorama, Air
    China, Monarch and leasing companies ILFC and Pegasus.
   
 4. 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.
   
For further information:

Annalie Brown
Communications Manager - Civil Aerospace
Rolls-Royce
Derby, UK

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