Re Contract

Rolls-Royce PLC
02 December 2002
                                                                2 December, 2002


       ROLLS-ROYCE AND LUFTHANSA SIGN $215M TRENT 500 CARE AGREEMENT


Rolls-Royce announced yesterday (1 December) that it had signed a ten-year Total
Care agreement worth $215 million with Lufthansa to provide in-service support
for the Trent 500 engines powering the airline's new fleet of Airbus A340-600s.

Lufthansa becomes the third customer for growth versions of the A340 to place
long-term engine support agreements with Rolls-Royce this year, worth a total of
more than $600 million and bringing civil aerospace aftermarket services
business in 2002 to around $1.5 billion.

Well over 40 per cent of all Trent engines for the A340-500 and -600, Boeing 777
and Airbus A330 are covered by Total Care agreements. Customers select from a
menu of services to produce tailor-made solutions which match individual fleet
requirements based on agreed rates per flying hour.

Deliveries of the ten A340-600s for which Lufthansa has placed firm orders begin
in the third quarter of 2003, with the aircraft scheduled for use on routes to
Asia and the Americas. The airline also has options for a further ten of the
four-engined, long-range jets.

Charles Cuddington, Managing Director - Airlines, Rolls-Royce, said: 'We
continue to see increasing demand for these comprehensive aftercare packages
which deliver a range of benefits, including predictable budgeting for our
customers. This agreement also marks an extension of the strong relationship
already forged between Lufthansa and Rolls-Royce.'

Lufthansa has also ordered a second member of the Trent family, the Trent 900,
for its 15 firm Airbus A380s scheduled to enter service in 2007. Rolls-Royce is
a senior partner in International Aero Engines whose V2500 powerplant has been
used by Lufthansa on its A321 twinjets since 1994.

The Trent 500 is the sole engine offered on growth versions of the A340.
Thirteen customers and operators have placed firm and option orders for a total
of over 400 engines. The 53,000lb thrust Trent 553 powers the ultra-long-range
A340-500 while a 56,000lb thrust version, the Trent 556, powers the higher
capacity A340-600.


For further information please contact:


Martin Brodie
Rolls-Royce plc
Tel: [phone]
Email: [e-mail]



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