Rolls-Royce Engines Selected by Air New Zealand

2 June, 2004

      ROLLS-ROYCE A TWO-TIME WINNER IN ENGINE SELECTION BY AIR NEW ZEALAND      

Rolls-Royce announced today (2 June) that it had won the first order for its
new Trent 1000 engine being developed for the Boeing 7E7 Dreamliner, as well as
the Trent 800 being the engine of choice to power the eight Boeing 777-200ER
aircraft ordered by Air New Zealand.

Air New Zealand's decision to use the Trent 1000 engine to power its two 7E7s
provides Rolls-Royce with the first engine order for the new twin-jet.

Charles Cuddington, Managing Director - Airlines, Rolls-Royce, said: "We're
delighted by Air New Zealand's decision to become a first-time Trent operator.
Not only have they set the pace with their 7E7 engine selection, they have also
placed a significant vote of confidence in the Trent programme overall with
their engine choice for the 777s."

Air New Zealand Chief Executive & Managing Director, Ralph Norris said: "Our
decision to power the new 7E7 aircraft with the new Rolls-Royce Trent 1000 is a
clear signal of where Air New Zealand is positioning itself - as innovative,
efficient and committed to delivering the best product to our customers."

Rolls-Royce is currently in the preliminary design stage of the Trent 1000
which is due for completion by the end of this year. The first development
engine is scheduled to run in 2006, with engine certification by the
airworthiness authorities coming in 2007.

The Trent 800, which entered service in 1996, has a market-leading share of 44
per cent on versions of the 777 where it competes. Prior to today's
announcement, a total of 267 Trent-powered Boeing 777s have been ordered by 12
customers.

Air New Zealand, a Star Alliance member, has a long-standing Rolls-Royce
relationship through its long-haul operations, using RB211-524G/H-T engines on
its Boeing 747-400s. The airline also operates V2500 engines on its fleet of
Airbus A320 aircraft. The V2500 is produced by International Aero Engines
(IAE), in which Rolls-Royce is a senior partner.

Corporate note to editors

Rolls-Royce operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It is 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. The company now has 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 comprising 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 35,000 people, of
which 21,000 are in the UK. Forty per cent of its employees are based outside
the UK - including 5,000 in the rest of Europe and 8,000 in North America.

The large number of engines in service will generate an assured aftermarket
demand for the provision of spare parts and services. The company's strategy is
to maximise aftermarket revenues, which have increased by 60 per cent over the
past five years due to the development of a comprehensive services capability.

Annual sales total nearly £6 billion, of which 50 per cent currently comes from
aftermarket services. The order book stands at more than £18 billion, which,
together with aftermarket demand, provides visibility as to future activity
levels.

For further information contact:

Neil Williams

Communications Manager - Civil Aerospace

Rolls-Royce plc

PO Box 31, Derby

DE24 8BJ

UK

Tel: [phone]

Email: [e-mail]

Website: www.rolls-royce.com