Embraer Corporate Jet Order

Rolls-Royce PLC
18 December 2001

                                                              18 December 2001

                      EMBRAER CORPORATE JET ORDER WORTH
                            US$500M TO ROLLS-ROYCE

Rolls-Royce plc announced today (18 December 2001) new business worth a
potential US$500 million for the AE 3007 engine, for up to 75 twin-engined
Embraer Legacy corporate aircraft ordered by Indigo, a corporate jet service
based in Chicago, Illinois.

This anticipated order represents installed and spare engines for 25 firm plus
50 option aircraft, with first delivery expected in August 2002.

Embraer and Indigo announced the order, subject to confirmation of financing
plans, at the National Business Aviation Association (NBAA) convention in New
Orleans.

Pete Pappas, Chairman and CEO - Indigo, said: 'We are excited about expanding
our fleet with this quality product from Rolls-Royce and Embraer. We concluded
that this aircraft was the best in the marketplace today and is perfect for
Indigo's future growth plan.

Sam Hill, Executive Vice President of Embraer, Business Aviation market,
said: 'It is very satisfying to be chosen to play an integral role in Indigo's
expansion, and to have the sale finalised at NBAA is great news. We were
already looking forward to bringing the Legacy to the U.S.; this is a great
reception.'

Ian Aitken, President - Corporate Aircraft, Rolls-Royce, said: 'Today's
announcement further demonstrates the success and popularity of the Rolls-
Royce-powered Legacy aircraft, adding to the market-leading position of AE
3007-powered Embraer jets.'

Orders for the AE 3007A1/3-powered Legacy aircraft now total 73 firm plus 94
options.

The 7,200lb-thrust engine is part of the Rolls-Royce AE 3007 engine family,
which delivers thrust from 7,000lb up to 9,000lb and powers the Embraer ERJ
135, 140 and 145 regional aircraft, the Cessna Citation X corporate jet, and
the Northrop Grumman Global Hawk UAV. The AE 3007 fleet has accumulated more
than 4 million engine flight hours in service.

Indigo, a division of NewWorldAir Holdings, Inc., provides an executive-level
travel experience to frequent business travellers. Indigo currently operates
between Chicago and New York/NewJersey's Teterboro airport. Service will be
expanded as the new Legacy Corporate Shuttle aircraft, in 18-seat
configuration, are added to the fleet. All Indigo flights are public charter
flights operated for Indigo by Indigo's sister company, Air-Serv, Inc.

The corporate aircraft engine market was worth US$2.4 billion in 2000, and
Rolls-Royce has approximately a 30 per cent total value market share. The
corporate aircraft sector covers the entire range of products from 6-seater
entry-level business jets requiring 1,800lb of thrust, to business jetliners
requiring 27,000lb of thrust.

For more information, please contact:

Peter Barnes-Wallis
Director of Financial Communications
Rolls-Royce plc
Tel: [phone]
Fax: [phone]
Website: www.rolls-royce.com