Re Contract

15 December, 2006

                  ROLLS-ROYCE SIGNS £100M SERVICES CONTRACTS                   
                         WITH LEADING LEISURE AIRLINES                         

Rolls-Royce has won services contracts worth more than £100 million to provide
complete engine overhaul over the next five years for the RB211-535 engines
powering Boeing 757 aircraft of two leading UK leisure airlines.

Thomas Cook Airlines UK Ltd has awarded Rolls-Royce a contract worth up to
£60 million to cover engines for the airline's 18 Boeing 757 aircraft.

First Choice Airways has signed an agreement worth up to £45 million, which
covers the engines on 12 of the airline's 17 Boeing 757s. Engines on the
remaining aircraft are covered by a separate TotalCare® contract.

The work will be carried out at the Rolls-Royce Aero Repair and Overhaul (AR&O)
facility in Derby, UK. John Paterson, Managing Director, Aero Repair and
Overhaul, said: "Our state-of-the-art facilities ensure that we are
consistently able to provide the highest standards of engine maintenance and
repair services to our customers. Our focus on enhancing the service we could
offer was a major factor in extending our successful 15-year relationship with
both airlines."

More than 1,300 RB211-535s are in service with over 80 operators and the
engines have accumulated over 40 million hours in service. The RB211-535 is one
of the most reliable engines in service and achieved a world record for on-wing
life without removal of over 40,000 hours - or nine years in operation. On
average, the RB211-535 stays on wing almost twice as long as the competing
engine.


Rolls-Royce repair and overhaul business has 17 sites on four continents, and
the capability to overhaul over 40 engine types.


For further information contact:

Annalie Brown

Communications Manager - Civil Aerospace

Rolls-Royce plc

Derby

UK

Tel: [phone]

Fax: [phone]

Email: [e-mail]