Re Contract

21 November, 2007

          LAN AIRLINES PLACES $2.4bn ORDER FOR ROLLS-ROYCE TRENT 1000          

One of Latin America's premier carriers, LAN Airlines S.A, has selected the
Rolls-Royce Trent 1000 to power a new fleet of up to 41 Boeing 787 Dreamliners.
The order, which is the first LAN has placed with Rolls-Royce, covers engines
for 26 firm and 15 option aircraft with deliveries commencing in 2012.

In addition, the engines will be supported under a long-term TotalCare service
agreement. The potential value of the engine order and service contract to
Rolls-Royce is over $2.4 billion at catalogue prices.

Enrique Cueto, Chief Executive Officer of LAN, said: "Our evaluation proved the
Trent solution was ideal for our network. Trent family heritage, combined with
sensible introduction of technology, provides LAN the low-risk solution we need
to ensure we meet our operational requirements. The services package offered
under TotalCare will give us tailored and comprehensive engine support,
underpinned by Rolls-Royce's experience and expertise."

Mark King, President - Civil Aerospace, at Rolls-Royce commented: "We are
delighted to welcome LAN as a new customer to the growing list of Trent
operators and to be in a position to help them achieve their plans for
international growth."

The Trent 1000 is the launch engine for all versions of the 787 Dreamliner,
which enters service in 2008. The engine has, like all Trents before, achieved
on-time certification from the airworthiness authorities for all variants of
the 787 and continues to set the pace on the 787 programme - first engine to
run and first engine to be certified.

Including business yet to be announced, orders have been placed for over 600
Trent 1000 engines by 19 operators and five leasing companies - approximately
half the Boeing 787 customers who have made an engine decision. For more
information about the Trent 1000, visit www.rolls-royce.com/trent1000.

NOTE TO EDITORS:

 1. "LAN" refers includes LAN Airlines, LAN Express, LAN Peru, LAN Ecuador, and
    LAN Argentina, as well as LAN Cargo and its affiliates. Currently, the LAN
    Alliance operates 70 passenger aircraft and 10 dedicated freighters, and
    serves destinations in Chile, Peru, Argentina, Ecuador, other Latin
    American countries, the Caribbean, the United States, Europe and the South
    Pacific, as well as 52 additional international destinations through its
    various code-share agreements.
   
 2. LAN Airlines is a member of oneworld, the world's leading global airline
    alliance. It has bilateral commercial agreements with oneworld partners
    American Airlines, British Airways, Iberia and Qantas, as well as with
    Alaska Airlines, AeroMexico, Mexicana, TAM, Korean Air and JAL. For more
    information visit www.lan.com or www.oneworldalliance.com.
   
 3. TotalCare agreements, tailored for individual operators, offer a range of
    services extending to aspects of support such as latest predictive
    maintenance, asset and logistics management, as well as repair and
    overhaul. TotalCare offers the opportunity to remove uncertainties from
    engine management and provides airlines with greater financial confidence
    from managing predictable costs.
   
 4. Rolls-Royce is present throughout Latin America:
   
  * The Rolls-Royce Brazil aftermarket centre at São Paulo in Brazil has served
    the region since it was established more than 50 years ago.
   
  * Rolls-Royce has supplied more than 2,000 AE3007 engines to Embraer for the
    ERJ 145 series of regional aircraft. Embraer also builds the AMX aircraft
    for the Brazilian air force, which is powered exclusively by
    Rolls-Royce.
   
  * In the energy sector, particularly oil and gas, Rolls-Royce is a major
    supplier to Petrobras.
   
 5. Rolls-Royce is working hard to improve the environmental impact of its
    products. Each year Rolls-Royce, in collaboration with its partners,
    invests around £700 million on research and development, aimed primarily at
    reducing noise and emissions.
   
For further information:

Mark Alflatt
Director - Financial Communications
Tel: [phone]