Re Contract

17 February 2003

              DRAGONAIR AND ROLLS-ROYCE SIGN TRENT SERVICES DEAL               

Rolls-Royce announced today (17 February) that it had signed a long-term
services agreement with Hong Kong's Dragonair for maintenance of the Trent 700
engines which power the airline's fleet of Airbus A330s.

The TotalCare package, based on agreed rates per flying hour, covers five
A330-300 twinjets and is valued at US$160 million by Rolls-Royce.

David Lui, General Manager Engineering, Dragonair, said: 'This agreement
expands an excellent working relationship with Rolls-Royce that spreads across
our Airbus fleet. TotalCare gives Dragonair a high degree of budgeting
visibility and places the care of our engines in the hands of the original
manufacturer.'

Maintenance of Dragonair's engines will be carried out at Hong Kong Aero Engine
Services Ltd. (HAESL), a joint venture involving Rolls-Royce, HAECO and
Singapore Airlines Engineering Company.

Today's announcement means that of the 25 customers and operators of
Rolls-Royce Trent 700-powered A330s, nearly half have now signed for TotalCare
packages.

Dragonair, which was established in 1985, uses its A330s on regional routes to
mainland China and throughout Asia. It also operates a fleet of 12 A320 series
aircraft powered by the V2500 from International Aero Engines, a consortium in
which Rolls-Royce is a senior shareholder.

For further information:

Martin Johnson

Head of Communications - Civil Aerospace

Rolls-Royce plc

Derby DE24 8BJ

UK

Email: [e-mail]

Tel: 44 + (0)1332 248688