Re Contract

10 October 2007

          KLM CITYHOPPER AGREES MAINTENANCE CONTRACT WITH ROLLS-ROYCE          

Rolls-Royce and KLM Cityhopper have signed a new eight-year overhaul and
maintenance agreement worth over $100 million for Tay engines powering the
airline's fleet of more than 40 Fokker 100 and Fokker 70 aircraft.

Michel Coumans, Chief Executive Officer for KLM Cityhopper, said: "We have a
long-standing relationship with Rolls-Royce, so we understand the benefits of
maintenance services provided by the manufacturer. We get the highest service
levels by using the maintenance provider that knows the engine best."

All full and mid-life overhauls will be the responsibility of Rolls-Royce,
which will carry out the work at its East Kilbride Aero Repair and Overhaul
facility in Scotland, with engineering support being supplied by Rolls-Royce
Deutschland in Dahlewitz.

Steve Redden Senior Vice President Europe said: "This contract, including a new
service concept, demonstrates our commitment to KLM Cityhopper and to providing
innovative solutions that will keep driving down the cost of operating Fokker
aircraft for all operators."

KLM Cityhopper began its relationship with Rolls-Royce in East Kilbride in the
1980s when it began operating Spey-powered Fokker 28. The airline started
commercial operations with the Tay engine during the 1990s.

NOTE TO EDITORS:

 1. The Tay 620 and Tay 650, powering the Fokker 70 and Fokker 100 aircraft, are
    the workhorses for many regional airlines and major carriers.

 2. The Tay engine family, renowned for outstanding economics and reliability,
    surpassed 24 million hours in service in 2007.
   
 3. The Tay also powers the Boeing 727 and the Gulfstream 300, 350, 400 and 450.
    There are more than 270 Tay-powered aircraft currently in operation with 74
    commercial operators. In the corporate market there are over 600 Gulfstream
    aircraft in operation with the Tay. KLM Cityhopper is the largest operator of
    the Tay. There are more than 1800 engines in operation worldwide.

 4. Rolls-Royce is working hard to improve the environmental impact of its
    products. Each year Rolls-Royce, in collaboration with its partners,
    invests around
    £700 million on research and development, two thirds of which has the
    objective of reducing the environmental impact of its products. The primary
    technology investment area is aimed at reducing noise and emissions.
   
 5. KLM Cityhopper is a 100 per cent subsidiary of KLM. The business has been
    in operation since the eighties and originated from the NLM and
    Netherlines. The name KLM cityhopper has existed since 1991. KLM cityhopper
    runs a large part of the European network of KLM. In addition, KLM
    cityhopper also offers customised ad hoc flights to third parties.
   
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For further information please contact:

Mark Alflatt
Director - Financial Communications
Tel: [phone]