Re Contract

20 June, 2007

               ETIHAD EXPANDS TRENT FLEET WITH LATEST A340 ORDER               

Etihad Airways, the fast-growing Abu Dhabi airline, has placed a repeat order
for Rolls-Royce Trent 500 engines to power four additional Airbus A340-600
aircraft.

The business is valued at $200 million at engine list prices. The aircraft will
be delivered in 2008 and 2009.

At a contract signing in Paris, James Hogan, Chief Executive of Etihad Airways,
said: "We're pleased to be partnering with Rolls-Royce to develop a
state-of-the art fleet that will enable us to continue to deliver a world-class
service to our customers."

Sir John Rose, Chief Executive of Rolls-Royce, added: "This announcement of
repeat business is evidence of confidence, both in the qualities of the Trent
series and of our delivery of tailored aftermarket services. I am delighted to
be expanding our role in Etihad's ambitious plans."

Etihad will eventually operate three versions of the Trent, having previously
placed orders for 14 Trent 700-powered A330 twinjets as well as four,
high-capacity A380s with the Trent 900.

The A340s in today's announcement are in addition to an initial order for eight
of the ultra-long-distance four engined airliners - four A340-600s and a
similar number of the longer range A340-500.

Latest generation A340s are powered solely by the Trent 500.

NOTE TO EDITORS:

 1. Rolls-Royce has a growing presence in the Middle East, where it is playing
    an important role in the development of the region across all the Group's
    sectors - civil aerospace, defence aerospace, marine and energy
   
 2. The Trent engine family has been ordered by many of the Middle East
    airlines, including Qatar, Emirates, Etihad and Gulf Air, powering Boeing
    777s, A330s and A340s. In addition, Etihad will be the first operator in
    the region of the Trent- powered A380. The International Aero Engines
    V2500, in which Rolls-Royce is a major partner, is also operated widely.
   
 3. The Group has more than 100 military engines in operation, powering Hawk
    trainers and C-130 aircraft and the Eurofighter Typhoon powered by the
    EJ200 is also expected to enter service in the region.
   
 4. To date, Rolls-Royce has 400 industrial gas turbines in the region and the
    Dolphin Gas Project from Qatar to the UAE is using Trent gas turbines for
    the undersea pipeline system.
   
 5. Marine products are in service throughout the commercial and naval sectors.
    In Kuwait, the navy operates the UM Almaradim class patrol boats with
    Kamewa watetjets. UT Design offshore support vessels are being built for
    Abu Dhabi.
   
 6. More information on Rolls-Royce in the Middle East is available on 
    http://www.rolls-royce.com/middle_east/default.htm.
   
For further information:

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Martin Johnson                                                 
Vice President, Communications            
Rolls-Royce plc                              
Tel: [phone]                      
Email:[e-mail]       


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