Re Contract

6 January, 2003

         SAA SERVICES DEAL TAKES ROLLS-ROYCE NEAR $2BN TOTAL FOR YEAR          

Rolls-Royce long-term civil aftermarket service agreements won in the last 12
months are nearing $2 billion following today's announcement (6 January) of a
$200 million contract with South African Airways (SAA) for maintenance of Trent
500 engines. More than $1.6 billion of the year's total involves service
agreements for the high-thrust Trent series.

Under the ten-year Total Care deal, based on an agreed scale of costs per
flight hour, Rolls-Royce will maintain the 56,000lb thrust Trent 556 engines
powering SAA's new fleet of nine Airbus A340-600s. The first of the
four-engined ultra-long-range airliners will be delivered later this month.

Charles Cuddington, Managing Director - Airlines, Rolls-Royce, said: 'South
African Airways becomes the fourth customer in the past six months for the new,
larger A340s to opt for this kind of long-term Trent Total Care package and
this agreement means the chance to extend an excellent relationship with SAA,
developed over 40 years.'

The Trent 500 is the only powerplant offered on growth versions of the A340.
Thirteen customers and operators have placed firm and option orders for a total
of more than 400 engines.

It represents a second generation of Rolls-Royce power for SAA's long-haul
operations, joining the RB211-524H-T used on the airline's fleet of Boeing
747-400s. The RB211s are also covered by an earlier Total Care agreement.

SAA will operate a second member of the Trent family, the Trent 700, when it
takes delivery of two leased Airbus A330 twinjets.

Note to editors:

Four Trent 500 service agreements, with SAA, Lufthansa, Virgin Atlantic and
China Eastern, have been announced since August 2002. The value of the
contracts is $840 million. Total Care deals were also signed last year with Air
Canada and Cathay Pacific involving Trent 700s for their Airbus A330 fleets.
These agreements were worth an additional $780 million.

Rolls-Royce plc operates in four growth markets - civil aerospace, defence
aerospace, marine and energy. It is a global company 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. As a result, engine
deliveries have grown to 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 consisting of 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 38,000
people worldwide, including 23,500 in the UK, 5,000 in the rest of Europe and
8,000 in North America.

Most of the engines in service will have operational lives of 25 years or more,
generating an assured aftermarket demand for the provision of spare parts and
services. The company's strategy is to maximise aftermarket revenues through
the development of a comprehensive services capability.

Annual sales total around £6 billion of which over 40 per cent currently comes
from aftermarket services. The order book stands at more than £19 billion,
which, together with aftermarket demand, provides visibility as to future
activity levels.

For further information contact:

Martin Brodie

Rolls-Royce plc

Tel: [phone]

Email: [e-mail]

Website: www.rolls-royce.com