Re Contract

Rolls-Royce PLC
18 December 2000


ROLLS-ROYCE AE 3007 ENGINE WINS $315M BUSINESS

Rolls-Royce plc today announced business worth $315 million for its AE 3007
engine. 

South African Airlink has placed an engine order worth $235 million for up to
70 Embraer RJ 135 regional jets, while British Regional Air Lines has awarded
Rolls-Royce an $80 million repair and overhaul contract to maintain its fleet
of AE 3007-powered Embraer RJ 145s.

Johannesburg-based South African Airlink becomes a new regional customer for
Rolls-Royce, following its decision to upgrade its fleet with 30 ERJ 135s on
firm order, with an additional 40 aircraft on option.  The airline is a
regional feeder to part-owner South African Airways, whose Boeing 747-400
airliners are powered by Rolls-Royce RB211-524G/H-T engines.

Meanwhile, British Regional Air Lines has signed an exclusive 10-year fleet
hour agreement with Rolls-Royce which will cover AE 3007 engine overhaul for
23 ERJ 145 aircraft selected by the airline in 1997. Sixteen of these aircraft
are already in service.

The AE 3007 powers the Embraer RJ 135, RJ 140 and RJ 145 regional aircraft for
which 1200 orders have been placed by customers in 18 countries.

In the last two years Rolls-Royce has won more than 200 repair and overhaul
contracts in civil aerospace, defence and energy sectors.  It has doubled the
share of repair and overhaul on its own engines to more than 50 per cent and,
last year, aftermarket revenues as a whole accounted for 40 per cent of the
company's turnover.

For further information please contact:
Martin Johnson
Head of Communications - Civil Aerospace
Tel:  + 44 1332 248688
Fax: + 44 1332 248972
Email: [e-mail]
Rolls-Royce website: www.rolls-royce.com