Re Contract

Rolls-Royce PLC
10 December 2002



                                            
10 December 2002

ROLLS-ROYCE SHARES IN V2500 ENGINE ORDER FROM AIR NEW ZEALAND


Rolls-Royce announced today (10 December) that it has won a share of an order to
supply V2500 engines to Air New Zealand.  The V2500 is produced by International
Aero Engines (IAE) in which Rolls-Royce is a 32.5 per cent shareholder.


The engines will be used to power 15 Airbus A320 series aircraft, and Air New
Zealand has purchase rights for a further 20 aircraft.  The additional twinjets
could be a mix of types within the A320 family, which can carry between 120 and
220 passengers.


With deliveries scheduled to begin in September 2003, the initial A320s will be
operated on routes between New Zealand and Australia, and on Pacific island
services.


Air New Zealand's Senior Vice President Operations & Technical, Craig Sinclair
said: 'The V2500 emerged a clear winner after an extremely thorough technical
and commercial evaluation. This advanced engine will be an important contributor
to our fleet modernisation initiative.'


IAE has delivered engines to power over 800 aircraft since the V2500 entered
service in 1989. Air New Zealand is the latest member of a world-wide family of
more than 80 customers and operators. Total fleet experience exceeds 20 million
flying hours.


The IAE partnership comprises Rolls-Royce, Pratt & Whitney of the United States,
the Japanese Aero Engines Corporation and MTU Aero Engines of Germany. The V2500
powers the A319, A320, A321, A319 Corporate Jet and the MD-90.



Note to editors


Rolls-Royce plc operates in four growth markets - civil aerospace, defence
aerospace, marine and energy.  It is a global company investing in technology
and capability that can be exploited in each of these sectors to create a
competitive range of products.


The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years.  As a result, engine
deliveries have grown to a total of 54,000 gas turbines in service worldwide.
The investments in product, capability and infrastructure to gain this market
position create high barriers to entry.


Rolls-Royce has a broad customer base consisting of more than 500 airlines,
4,000 corporate and utility aircraft and helicopter operators, 160 armed forces
and more than 2,000 marine customers, including 50 navies. The company has
energy customers in nearly 120 countries.  Rolls-Royce employs around 39,000
people worldwide, including 23,500 in the UK, 5,000 in the rest of Europe and
8,000 in North America.


Most of the engines in service will have operational lives of 25 years or more,
generating an assured aftermarket demand for the provision of spare parts and
services.   The company's strategy is to maximise aftermarket revenues through
the development of a comprehensive services capability.


Annual sales total around £6 billion of which over 40 per cent currently comes
from aftermarket services. The order book stands at more than £19 billion,
which, together with aftermarket demand, provides visibility as to future
activity levels.



For more information contact:



Martin Johnson                           Peter Isendahl
Rolls-Royce plc                          International Aero Engines AG
PO Box 31
Derby DE24 8BJ



Tel: [phone]                  Tel: [phone]
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