Regional Jet Order

Rolls-Royce PLC
25 July 2000


ROLLS-ROYCE WINS US$1 BILLION REGIONAL JET ENGINE ORDER 
AND MAINTENANCE AGREEMENT


Rolls-Royce plc, the civil aerospace, defence, marine and energy group, today
announced an engine order and maintenance agreement worth US$1.02 billion as
Embraer and Continental Express launched the new ERJ 145XR extended-range
regional jet.  The order for AE 3007A1E engines for 75 firm and 100 option
aircraft will be included in the long-term Fleet Hour Agreement (FHA) for
engine maintenance with Continental Express.

Aircraft deliveries are scheduled to begin in early 2002. 

Carmen Lloyd, President - Corporate and Regional Airlines, Rolls-Royce, said: 
'We are very pleased to further extend our relationship with Continental
Express, which was the North American launch customer for the Embraer regional
jet programme.  The combination of the Rolls-Royce AE 3007 engine and ERJ 145
airframe has proven to be extremely successful, as evidenced by the number of
new aircraft ordered and options exercised by existing customers.'

The Rolls-Royce AE 3007A1E turbofan engines will offer reduced fuel
consumption and increased thrust to the ERJ 145XR, which provides a 35 per
cent increase in range compared to existing ERJ 145s.  

Continental Express has now placed 275 firm orders and 100 options for
Rolls-Royce-powered Embraer regional jets, and currently operates 80 aircraft.


Background information:

* The 7,600lb thrust Rolls-Royce AE 3007 engine is the sole powerplant for the
50 passenger 
ERJ 145 aircraft, the 44-passenger ERJ 140 and the 37-passenger ERJ 135.

* The Rolls-Royce AE 3007 engine fleet has accumulated 1.6 million flight
hours since entering service in 1996.

* Rolls-Royce AE 3007 turbofan engines have been designed to meet the
stringent requirements of the regional airline industry, while also meeting
the strict sound and emission limits required of tomorrow's regional airline
fleet.

* The engine is part of the Rolls-Royce AE common core family of engines,
which includes the AE 1107 turboshaft and AE 2100 turboprop, where all utilise
a common power core.  The knowledge and maturity gained through the
development of the common core approach enables Rolls-Royce to back the AE
3007 with industry-leading warranties and guarantees, ensuring excellent
economic performance.

* The Rolls-Royce AE 3007 engine entered revenue service on the Embraer RJ 145
in April, 1997, with Continental Express, the aircraft's North American launch
customer.

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www.rolls-royce.com

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