ROLLS-ROYCE SELECTED BY BOEING TO POWER 7E7

6 April, 2004

           ROLLS-ROYCE "TRENT 1000" SELECTED BY BOEING TO POWER 7E7            

Rolls-Royce announced today (6 April) that it had been selected by Boeing to
supply a new generation of Trent engine for the 7E7 Dreamliner. The engine will
be called the Trent 1000.

Sir John Rose, Chief Executive of Rolls-Royce, said: "I welcome this highly
significant decision. We expect this programme to provide good financial
returns and to build on our successful engine portfolio which has allowed us to
develop a strong market position in the civil airlines sector.

"As with our other engine development programmes, the suite of advanced
technologies which will be developed for the Trent 1000 will find applications
in all of our business sectors. Research and development costs associated with
this programme will be contained within current expenditure levels which have
been broadly constant in recent years."

Mike Terrett, President - Civil Aerospace, Rolls-Royce, added: "We are
delighted by Boeing's expression of faith in Rolls-Royce which re-affirms the
Trent family's leading position on modern widebody airliners. This is a special
day in the long and successful relationship between our companies. Now, once
again, our focus is on bringing a new generation of Trent successfully to
market."

Boeing's 7E7 Senior Vice President Mike Bair said: "The Rolls-Royce Trent 1000
engine selected for the 7E7 will set new standards of performance and enable
the airplane to fly higher, faster, farther, cleaner and quieter than today's
comparable airplanes. Engines are a key driver in value proposition of a new
airplane programme and the Rolls-Royce Trent 1000 is an excellent choice for
the 7E7 and the world's airlines."

The announcement follows an exhaustive technical and commercial evaluation.
Teams from the two companies have been working in tandem for around two years
to define specifications and performance targets, with significant input from
more than 20 potential airline customers.

A single version of the Trent 1000 - which until Boeing selection had been
known by its working title of Trent 7E7 - will be offered to power all variants
of the 7E7 from short to long-range aircraft. Engine ratings will be set for
individual aircraft applications across a range of 53,000lb to 70,000lb thrust.

Rolls-Royce is in discussion with potential risk and revenue sharing partners
on the Trent 1000 programme and announcements will be made in due course.

The Trent 1000 will be the fifth Trent variant to enter service. Orders for all
versions of the Trent total over 1,700 engines from 44 customers, giving the
Trent family a 50 per cent market share in its sector.

For further information and interview requests contact:

In the United States:

Martin Johnson

Vice President, Communications

Rolls-Royce Group plc

Tel: [phone]

00 44 (0) 7788 497358 (cell)

Fax [phone]

Email: [e-mail]

In the United Kingdom:

Neil Williams

Communications Manager - Civil Aerospace

Rolls-Royce Group plc

Derby DE24 8BJ

Tel: [phone] or

[phone]

Fax: [phone]

Email: [e-mail]

Trent background by programme:

First to enter service, in 1995, was the 67,500 - 72,000lb thrust Trent 700 on
the Airbus A330 twinjet. A total of 175 Trent-powered A330s have been ordered
by 27 customers, giving the engine a leading market share of 37 per cent.

In 1996, the Trent 800 began commercial operations on the Boeing 777. This
version of the engine - again, the market leader on the 777 with a 44 per cent
share on versions of the aircraft where it competes - is the most powerful
Trent in service, with thrusts up to 95,000lb. To date, 267 Trent-powered
Boeing 777s have been ordered by 12 customers.

The Trent 500 is the sole powerplant for the four-engined Airbus A340-500 and
-600 ultra-long-range airliners. Entering service in 2002, it has a thrust
rating of 53,000lb for the longer range A340-500 and 56,000lb for the higher
capacity -600 aircraft. A total of 132 aircraft have been ordered by 14
customers.

Next in line is the Trent 900, currently being developed for the A380, on which
it has a 48 per cent market share. The first engine was delivered to Toulouse
in February and is currently being installed on the Airbus flying test bed.
Thrust requirement for entry into service in 2006 is 70,000lb. Orders for 74
Rolls-Royce powered A380s have been placed by four airlines.

Corporate note to editors

Rolls-Royce operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It is investing in technology and capability that
can be exploited in each of these sectors to create a competitive range of
products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years. The company now has a
total of 54,000 gas turbines in service worldwide. The investments in product,
capability and infrastructure to gain this market position create high barriers
to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 50 navies. The company has energy
customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of
which 21,000 are in the UK. Forty per cent of its employees are based outside
the UK - including 5,000 in the rest of Europe and 8,000 in North America.

The large number of engines in service will generate an assured aftermarket
demand for the provision of spare parts and services. The company's strategy is
to maximise aftermarket revenues, which have increased by 60 per cent over the
past five years due to the development of a comprehensive services capability.

Annual sales total nearly £6 billion, of which 50 per cent currently comes from
aftermarket services. The order book stands at more than £18 billion, which,
together with aftermarket demand, provides visibility as to future activity
levels.