Re Contract

8 December, 2005

                ROLLS-ROYCE WINS $600 MILLION TRENT ENGINE DEAL                
                         TO POWER CHINA SOUTHERN A380s                         

China Southern Airlines has selected Rolls-Royce Trent 900 engines to power its
new fleet of five Airbus A380s. The deal is worth a total of $600 million.

China Southern is the launch customer for both the Trent 900 and the A380 in
China, with aircraft deliveries scheduled for late 2007.

The announcement was made during a visit to China Southern's headquarters in
Guangzhou by Sir John Rose, Chief Executive of Rolls-Royce, which included the
signing of a Memorandum of Understanding (MoU) on the deal.

Mr Liu Shaoyong, Chairman of China Southern Airlines, said: "We believe that
the advanced Trent 900 engine and the A380 are a perfect match. The combination
will provide high levels of reliability, and support the promotion of the brand
name of China Southern Airlines. At the same time, it is a strategic step to
establishing China Southern's hub in Beijing, connecting the cities of China
and the rest of the world."

Sir John Rose, added: "China Southern's selection of the Trent 900-powered A380
further enhances our position in the fast-growing Chinese marketplace. As an
existing Trent customer, China Southern's selection of the Trent 900
demonstrates its confidence in our ability to deliver efficient, reliable
technology backed by a high level of support services."

Seven out of the 11 A380 customers who have made engine selections have opted
for the Trent 900.

NOTE TO EDITORS

1. China Southern Airlines already operates three types of aircraft powered by
Rolls-Royce - Airbus A330-200s (Trent 700), Boeing 757s (RB211), and Embraer
ERJ-145s (AE3007). The airline has also selected the V2500 to power some of its
Airbus A320 family aircraft. The V2500 is produced by the International Aero
Engines consortium (IAE) in which Rolls-Royce has a 32.5 per cent share.

2. The Trent 900 has also been selected by Singapore Airlines, Lufthansa,
Malaysia Airlines, Qantas, Virgin Atlantic and Etihad Airways. With firm and
option orders placed for 89 Trent-powered A380s, Rolls-Royce has secured a 50
per cent share of the market.

3. Trent 900s have accumulated almost 2,000 hours on the three A380s currently
in the flight test programme.

4. The first Trent 900 engine ran on schedule in March 2003, made its maiden
flight on an Airbus A340-300 flying-test bed in May 2004, and completed a
successful 60-hour flight test programme. Engine certification was achieved on
schedule in October 2004. It is the fourth member of the Trent family of
engines to be introduced since 1995.

5. Seven companies are participating as risk and revenue-sharing partners on
the Trent 900 programme: Industria de Turbo Propulsores (ITP), Hamilton
Sundstrand, Avio, Marubeni, Volvo Aero, Goodrich and Honeywell. In addition,
Samsung Techwin, Kawasaki Heavy Industries (KHI) and Ishikawajima-Harima Heavy
Industries (IHI) are programme associates.

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]