Re Contract

18 May, 2005

            ROLLS-ROYCE AND DRAGONAIR EXTEND TRENT MAINTENANCE DEAL            

Rolls-Royce and Dragonair have signed an 11-year TotalCareâ„¢ maintenance
contract covering the fleet of Trent 700 engines which will power 11 Airbus
A330 aircraft on lease to Dragonair from ILFC.

This agreement is in addition to an existing TotalCare contract that Dragonair
has for its five purchased A330 aircraft. Dragonair already has seven leased
A330s currently in service and is expecting delivery of a further four lease
aircraft. This new contract means all of Dragonair's A330 fleet in service and
on order will be covered under TotalCare service agreements.

The Rolls-Royce TotalCare support package provides a leading aftercare service
which enables Dragonair to hand over full responsibility for care of the engine
fleet at an agreed dollar rate per flying hour.

Mike Terrett, President, Civil Aerospace, at Rolls-Royce, said: "This new
agreement expands on the strong relationship we have with Dragonair and we are
extremely proud to be supporting the airline as it continues its rapid growth
plan.

"Dragonair prides itself on delivering a quality service to its customers, a
vision with which we can identify. TotalCare adds significant value and
benefits to Dragonair by enabling it to focus on the quality of its core
business."

Maintenance of Dragonair's engines will be carried out at Hong Kong Aero Engine
Services Ltd. (HAESL), a joint venture involving Rolls-Royce, Hong Kong
Aircraft Engineering Company Limited (HAECO) and Singapore International
Airlines Engineering Company.

                                    -Ends-                                     

Note to editors:

 1. Hong Kong-based Dragonair operates a fleet of 12 A330-300s, six A321s and
    11 A320s, in addition to four Boeing 747-200/-300 freighters, one
    wet-leased A300B4 freighter and one wet-leased Boeing 747-400 freighter.
    The airline's passenger network covers 30 destinations across the
    Asia-Pacific region, while its cargo network connects the markets of
    Europe, the Middle East, the United States, Japan, Taiwan and mainland
    China.
   
 2. Dragonair's A320 series aircraft are powered by V2500 engines, which are
    produced by International Aero Engines, a consortium in which Rolls-Royce
    is a principal shareholder.
   
 3. Currently more than 60 per cent of all Trent engines in service are covered
    by TotalCare agreements.
   
 4. With 29 customers and operators, the Trent 700's share on the A330 is a
    market-leading 42 per cent. It celebrated 10 years in operation in March
    2005. The engine's fleet experience exceeds 3 million hours since it
    entered into service with Cathay Pacific in 1995.
   
 5. TotalCare agreements, tailored for individual customers, offer a range of
    services extending to aspects of support such as provision of lease
    engines, 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.
   
Pictures of the Trent 700 to accompany this release can be found at:

http://www.rolls-royce.com/media/gallery/civil/civil03.jsp

For further information contact:

Annalie Brown

Communications Manager

Rolls-Royce plc

PO Box 31

Moor Lane

Derby DE24 8BJ

Tel: [phone]

Fax: [phone]

Email: [e-mail]