£600M Contract

Rolls-Royce PLC
3 January 2001


ROLLS-ROYCE WINS £600 MILLION ENGINE OVERHAUL AGREEMENT
 
Rolls-Royce plc has secured its largest single repair and overhaul agreement
with a £600 million package to maintain V2500 engines. 
 
Under the 20-year agreement with International Aero Engines (IAE), which
produces the V2500, the engines powering British Airways' fleet of Airbus
Industrie A320 series aircraft will be reworked at the Rolls-Royce repair and
overhaul facility in East Kilbride, Scotland.  Established in 1993, the
specialist facility has expanded to meet the needs of the growing V2500 fleet
which has over 80 customers worldwide.  

The IAE consortium, in which Rolls-Royce is a senior shareholder, won the
British Airways order for 59 firm and 129 option V2500-powered A319 and A320
aircraft in August 1998.  Deliveries began in September 1999. 

Over the past five years Rolls-Royce has doubled the share of repair and
overhaul on its own engines to more than 50 per cent.  In the last two years
it has won more than 200 repair and overhaul contracts in civil aerospace,
defence and energy sectors and aftermarket revenues currently account for 40
per cent of the company's turnover.

For more information please contact:
Martin Johnson
Head of Communications - Civil Aerospace
Rolls-Royce plc
Tel: [phone]
Fax [phone]
Email: [e-mail]
Rolls-Royce website: www.rolls-royce.com