Re Contract

Rolls-Royce PLC
28 January 2002

                                                           28 January 2002



                      ROLLS-ROYCE SIGNS US$250 MILLION
                       TOTAL CARE DEAL WITH AIR CANADA


Rolls-Royce plc announced today (28 January) that it has signed a US$250
million, 15-year Total Care agreement with Air Canada. The agreement is for
maintenance of Trent 772B engines, which power the airline's eight Airbus
A330-300 aircraft.



John Cheffins, Chief Operating Officer, Rolls-Royce, said: 'This Total Care
agreement with Air Canada increases the number of international airlines
benefiting from our full range of aftermarket services, which provide tailored
support at predictable costs. The agreement also extends our excellent, long-
standing relationship with Air Canada well beyond the 50-year mark.'



With an order for up to 15 aircraft, Air Canada is among the launch customers
for the new Airbus A340-500/-600 aircraft powered by Rolls-Royce Trent 500
engines. Air Canada launched its A330 service in October 1999 and currently
operates eight A330 aircraft between major Canadian and European cities,
including Toronto, Montreal, London, Paris and Frankfurt.



The Trent 700 entered service on the A330 in March 1995 and is currently in
service with 17 airlines worldwide. Orders by a total of 22 airlines and leasing
companies bring the Trent 700's share of the A330 market to 36 per cent.



New civil aftermarket business announced by Rolls-Royce in 2001 is valued at
over $2 billion. In the past five years Rolls-Royce has more than doubled its
market share of repair and overhaul on its civil engines to 56 per cent.
Revenues from aftermarket and associated services currently account for 40 per
cent of the company's turnover.



Rolls-Royce engines, including the Merlin, Dart and RB211, have powered Air
Canada aircraft for 56 years.



For further information please contact:



Martin Brodie

Head of Corporate Media Relations
Rolls-Royce plc
Tel: [phone]
Fax: [phone]

Email: [e-mail]

                      This information is provided by RNS
            The company news service from the London Stock Exchange