Agreement Signed

Rolls-Royce PLC
11 January 2001


ROLLS-ROYCE SIGNS US$1 BILLION FLEET HOUR AGREEMENT
WITH AMERICAN AIRLINES 

Rolls-Royce, the aerospace, marine and energy power systems group, has signed
a $1 billion maintenance support agreement with American Airlines for its
fleet of RB211-535E4 aero engines. The work will be carried out at Texas Aero
Engine Services Ltd. (TAESL), a joint venture between American and
Rolls-Royce.

The ten-year Fleet Hour Agreement involves the provision of comprehensive
maintenance, at a set cost, calculated on flying hours, for American Airlines'
current fleet of 102 Boeing 757s. A further 23 of the twin-engined airliners,
due for delivery throughout this year and 2002, will also be covered by the
agreement.

John Cheffins, President Civil Aerospace, Rolls-Royce, said:  'Fleet Hour
Agreements provide operators with the benefit of aftermarket support at
predictable costs together with the advantage of a long-term association with
engine manufacturers. This is a further example of Rolls-Royce securing the
long-term benefits which arise from its rapidly expanding installed engine
base.'

This brings the total of new aftermarket business announced this month to
nearly $2 billion. On 3 January 2001, Rolls-Royce announced an $880 million
package to maintain V2500 engines powering British Airways' fleet of Airbus
Industrie A320 series aircraft.

Rolls-Royce has more than doubled its market share of repair and overhaul on
its civil engines to 56 per cent in the past five years. Revenues from
services currently account for 35 per cent of the company's turnover.



Note to editors:
Today's news marks an expansion of American Airlines' support arrangements
with Rolls-Royce following a ten-year contract for maintenance of its Trent
800 fleet for its Boeing 777s agreed in 1999.  Maintenance on RB211-535E4,
Trent and Tay engines in service with American Airlines is carried out at
TAESL. 

Reflecting the increasing role played by predictive maintenance, fleet
managers will have the opportunity to access online details of real-time
engine performance provided by air-to-ground computer links. The capability is
provided by Data Systems & Solutions (DS&S), a joint venture between
Rolls-Royce and Science Applications International Corporation. 

DS&S provides systems integration, integrated asset management and maintenance
solutions to customers in aerospace, defence, marine and energy markets.


For more information please contact:
Martin Johnson
Head of Communications - Civil Aerospace
Rolls-Royce plc
Tel:  [phone]
Fax: [phone]
Email: [e-mail]
Rolls-Royce website: www.rolls-royce.com

Tim Blythe
Director - Corporate Communications
Rolls-Royce plc
Tel: [phone]