Joint Venture with SR Technics Limited

Rolls-Royce PLC
9 February 2000


ROLLS-ROYCE AND SR TECHNICS TO CREATE
EUROPEAN REPAIR AND OVERHAUL VENTURE

Rolls-Royce plc, the aerospace, marine and energy group, and SR Technics
Limited, a wholly owned subsidiary of SAirGroup, are joining forces to create
a new maintenance and overhaul company to service Trent aero engine customers
in Europe and Africa.  The 50:50 joint venture is scheduled to begin
operations in 2001.

The Rolls-Royce Trent family of engines has secured a worldwide market share
of almost 50 per cent, powering the new generation of wide-body airliners from
Airbus Industrie and Boeing. Zurich based SR Technics will repair and overhaul
Trent 500 and 700 engines while Trent 800 services will be carried out by
Rolls-Royce in Derby, England.   

The new company will provide technical and commercial support for the growing
number of customers in Europe and Africa with Trent-powered Airbus A330s,
growth versions of the A340 and Boeing 777 aircraft.  SR Technics' sister
company, Swissair, has already committed to a total of 9 firm and 10 option
A340-600 aircraft powered by Trent 500 engines, which will enter service in
2002.

SR Technics is a world leader in aircraft and engine maintenance, renowned for
its quality service.  CEO Hans Ulrich Beyeler said: 'The joint venture
provides SR Technics with an excellent opportunity to expand its product
portfolio and professional service offerings into Rolls-Royce engines.  Our
joint venture combines the strength of SR Technics and Rolls-Royce who will
work together as equal partners.  This joint venture will establish a new
model for SR Technics of co-operation between a maintenance organisation and
an engine manufacturer.'


Ian Lloyd, Managing Director of Rolls-Royce Aero Repair and Overhaul said: 
'This latest venture in Europe completes our global network for Trent support
and complements our other facilities in Hong Kong, Singapore and Texas.  It
unites the strengths of SR Technics' well established maintenance services
operation with the growing range of aftermarket services being developed by
Rolls-Royce.'

For further information please contact:

Emma Medd-Sygrove                                   Marcel Wuermli
Rolls-Royce Corporate Communications       SR Technics Marketing & Public
Relations
Tel:   +       44 1332 24870                     Tel:  [phone]
Fax:  [phone]                            Fax: [phone]
E-mail: [e-mail]       E-mail: [e-mail]
Website: www.rolls-royce.com                     Website:  www.srtechnics.com
       


Rolls-Royce has achieved a 30% share of the world market for civil aero
engines over the last three years.  As the market share grows, so does the
opportunity for its repair and overhaul businesses.

The Trent engine in particular has become a world leader in its sector and the
company's strategy has enabled it to capture all of the Trent repair and
overhaul business for its own engines through its own or joint venture
businesses.
   
Rolls-Royce has created a network of strategic joint ventures with key
customers as the cornerstone of its expanding, global services business.

The repair and overhaul business is one of the fastest growing sectors in
Rolls-Royce with sales trebling in the last four years.

The full range of Rolls-Royce aftermarket activities includes repair and
overhaul of products across the company's aero, marine and energy businesses
as well as spares provision, engine leasing, predictive maintenance services
and 'Power by the Hour' agreements.

Rolls-Royce develops innovative solutions to meet specific customer
requirements and as a result has doubled its market share of repair and
overhaul of its own civil engines in the past three years.
  
The company won more than 100 repair and overhaul contracts last year in civil
aero, defence and energy sectors.

With a worldwide network of repair and overhaul operations established at 16
locations on four continents, Rolls-Royce now repairs 47 different engine
types for more than 400 customers.

Aftermarket revenues now account for nearly 40% of Rolls-Royce plc turnover. 

More than 1,500 engines and 4,500 modules are overhauled in Rolls-Royce
facilities each year.