US$50m total care agreement

Rolls-Royce PLC
13 December 2001

13 December 2001


         ROLLS-ROYCE, RIO SUL SIGN US$50 MILLION TOTAL CARE AGREEMENT


Rolls-Royce plc today (13 December 2001) announced the signing of a US$50
million support agreement with Rio Sul Linhas Aereas, part of the Varig group
of companies, for maintenance of the AE 3007 engines powering the airline's
fleet of Embraer ERJ 145 regional jets.

The 10-year Total Care agreement provides for the comprehensive maintenance
for the engines for Rio Sul's current fleet of 15 ERJ 145s at a set cost,
calculated on flying hours. The work will be carried out at the Rolls-Royce
Brasil facility in Sao Bernardo do Campo, in the State of Sao Paulo.

John Cheffins, Chief Operating Officer, Rolls-Royce, said today: 'The Total
Care agreement provides tailored aftermarket support at predictable costs, and
extends an excellent relationship with Rio Sul built over the past four years.
This latest contract extends a trend already established with Embraer ERJ
operators, 83 per cent of which have Total Care agreements with Rolls-Royce
for their

AE 3007 engines.'

The Rolls-Royce AE 3007 is the exclusive engine on Embraer's 37- 50 seat jets
- the ERJ 135, 140 and 145. The 1,000th engine was delivered earlier this
year, and firm and option orders for Embraer twin-engine corporate and
regional jets are around 1,600.

In the past five years, Rolls-Royce has more than doubled its market share of
repair and overhaul on its civil engines, to a total of 56 per cent. Income
from aftermarket sales and services currently represents 40 per cent of
company revenues.

The AE 3007 engine also powers the new Embraer Legacy, the Cessna Citation X
business jet and the Brazilian SIVAM military surveillance aircraft. The
common core AE 3007 engine, delivering thrust from 7,000lb up to 9,000lb, has
accumulated nearly 4 million engine flight hours in service.


For more information, please contact:

Martin Brodie,

Head of Corporate Media Relations

Tel:  [phone]

Fax: [phone]

Email: [e-mail]

Website: www.rolls-royce.com