Re Contract

17 August, 2005

             ROLLS-ROYCE SHARES IN V2500 ENGINE ORDER BY LAN CHILE             

Rolls-Royce has won new business in South America as its share of an order from
LAN Airlines of Chile for V2500 engines to power up to 40 Airbus A320 series
aircraft.

Today's announcement involves 18 firm aircraft plus 22 options, and is in
addition to a previously announced order by Santiago-based LAN for 20
V2500-powered A320 family airliners.

Rolls-Royce is a senior shareholder in the International Aero Engines (IAE)
consortium which produces the V2500. IAE's other partners are Pratt & Whitney
of the United States, MTU Aero Engines of Germany and the Japanese Aero Engines
Corporation.

The V2500, which has a thrust range from 22,000 to 33,000lb, is installed on
the Airbus A319, A320, A321 and A319 Corporate Jet.

More than 1,050 V2500-powered aircraft have been delivered, and the worldwide
fleet has accumulated over 33 million flying hours.

For further information:

Martin Johnson
Vice President, Communications - Civil Aerospace
Rolls-Royce
Tel: [phone]
Fax: [phone]
Email: [e-mail]