Re Contract

Rolls-Royce PLC
19 December 2001

19 December 2001



ROLLS-ROYCE SIGNS $400M TOTAL CARE DEAL WITH BRAZIL'S TAM

Rolls-Royce announced today (19 December, 2001) that it had signed a long-term
Total Care maintenance agreement worth $400 million with Brazilian airline TAM
Linhas Aereas.

Under the 15-year package, Rolls-Royce will maintain the Tay 650 engines on
TAM's 50 Fokker 100 twinjets - the world's second largest Tay-powered fleet.

Work will be carried out at the Rolls-Royce Brasil facility in Sao Bernardo do
Campo in the State of Sao Paulo.

John Cheffins, Chief Operating Officer, Rolls-Royce, said: 'We're delighted to
be extending our relationship with TAM through this long-term agreement. Total
Care provides tailored support at levels to suit individual customers, and
this type of contract has become established as a key element in our support
services strategy.'

The Fokker 100 is the workhorse of TAM's domestic fleet which serves over 100
destinations within Brazil and neighbouring countries.

Versions of the Rolls-Royce Tay power Gulfstream GIV corporate jets as well as
Fokker 100 and Fokker 70 regional airliners. The worldwide fleet of nearly 800
Tay-powered aircraft has accumulated over 15 million flight hours.

For further information:

Martin Johnson, Head of Communications - Civil Aerospace
Rolls-Royce plc
PO Box 31
Derby DE24 8BJ
Tel: [phone]
Fax: [phone]
Email: [e-mail]