Re Contract

Rolls-Royce PLC
28 June 2002

                                                                 28 June 2002


               ROLLS-ROYCE TRENT TO POWER IBERIA AIRBUS A340-600s


Rolls-Royce today (28 June) announced it has won engine business worth $120
million to provide Trent 500 engines for three Airbus A340-600 airliners ordered
by Iberia, Spain's national carrier.

The airline, which today celebrates its 75th anniversary, will take delivery of
the aircraft from mid-2003, operating them from its hub in Madrid to
destinations in Central and South America.

Mike Terrett, President of Civil Aerospace, Rolls-Royce, said: 'Iberia is among
an impressive list of prestige carriers around the world to realise the economic
benefits of the Trent 500 on the A340-600. The decision extends a strong
relationship established over many years.'

More than 400 Trent 500 engines have been ordered to date by 13 customers and
operators, representing advanced sales of more than $5 billion.

The 53,000lb to 56,000lb thrust Trent 500, which is the sole engine for the
ultra long- range A340-500 and higher capacity A340-600, completed all
development tests, on or ahead of schedule.  This includes engine certification,
flight testing and customer route proving missions.  The first aircraft will
enter service next month with launch customer Virgin Atlantic.

In addition to the A340-600s, Iberia also operates a fleet of 18 Rolls-Royce
RB211-535-powered Boeing 757s.



For more information please contact:

Martin Brodie
Head of Corporate Media Relations
Tel: [phone]
Email: [e-mail]
Website: www.rolls-royce.com



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