Agreement Signed for £450 Million Engine Services

Rolls-Royce PLC
7 March 2000



ROLLS-ROYCE SIGNS £450 MILLION ENGINE SERVICES AGREEMENT 


Rolls-Royce plc, the civil aerospace, defence, marine and energy group, today
announced a long term services contract with Continental Express for its 
AE 3007 powered regional jets. The combined service and spare engine sales
contracts are valued at up to £450 million over the next ten years.  

Today's agreement involves a total of 400 AE3007 engines powering Embraer ERJ
145 and ERJ 135 aircraft.  Last month, Continental Express announced the
exercise of purchase options on 75 ERJ 145 and 25 ERJ 135 aircraft, bringing
its firm total to 200 aircraft.  The airline holds options on an additional 75
aircraft.

Financial and aftermarket services account for 40 per cent of Rolls-Royce
sales.  The company has developed a broad range of services in response to the
rapid growth of its customer base, the growing numbers of products in service
and the increasing requirement from customers for through-life support.

Rolls-Royce ended 1999 with a record £13.2 billion order book which included
£1.7 billion worth of orders announced but not signed.  Order intake has been
strong from the start of the year with the announcement of a further £1.5
billion worth of new business. 


Background information:
* The Rolls-Royce AE common core engine family has accumulated 2 million
flight hours since entering service.
* Rolls-Royce overhauls more than 1,500 aero engines and 4,500 modules each
year.  The company repairs 47 different engine types for 400 customers through
a worldwide network of 16 repair and overhaul operations on four continents.
* The company's aero repair and overhaul business continued to grow in 1999 as
a result of its comprehensive international network of repair bases and the
growing installed base of engines.  Rolls-Royce won more than 100 repair and
overhaul contracts during the year.
* Repair and overhaul sales have tripled over the last five years.
* Continental Express was the North American launch customer for the ERJ 145,
inaugurating revenue service in April 1997.
* The ERJ 145 order book now stands at 412 firm and 261 options, while 322
total orders have been placed for the ERJ 135.  Currently in service with 25
operators on three continents, a total of 186 ERJ 145 and 21 ERJ 135 aircraft
have been delivered to date.
* The 7,600lb thrust Rolls-Royce AE 3007 engine is the sole powerplant for the
50-passenger ERJ 145, the 37-passenger ERJ 135 and the recently announced
44-passenger ERJ 140 aircraft.

Note to editors:

Rolls-Royce plc is a global company providing power on land, sea and air. The
company has established leading positions in civil aerospace, defence and
energy markets with a worldwide network of offices and manufacturing or
service facilities in 20 countries.  Its core gas turbine technology has
created one of the broadest product ranges of aero engines in the world, with
55,000 engines in service with 300 airlines, 2,400 corporate and utility
operators and more than 100 armed forces, powering both fixed and rotary wing
aircraft.  

Rolls-Royce is the global leader in marine power systems with a wide range of
products and full systems integration capability.  More than 30 navies use
Rolls-Royce propulsion.  The company is investing in new products and
capabilities for energy markets, which include the oil and gas industry and
power generation.  Rolls-Royce also develops its own power projects through
its wholly-owned subsidiary Rolls-Royce Power Ventures Ltd. 
 
Rolls-Royce pioneered gas turbine technology for aerospace, power generation
and marine propulsion and is involved in the major future programmes in these
fields.  These include the Trent aero and industrial engines, the Eurofighter
Typhoon and Joint Strike Fighter combat engines, the WR21 marine engine and
leading edge water jet propulsion systems.

For more information please contact:
Scott Cooper
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www.rolls-royce.com