Memorandum of Agreement

Rolls-Royce PLC
30 August 2000


MEMORANDUM OF AGREEMENT FOR A400M ENGINE

Six European aerospace companies have signed a Memorandum of Agreement to
collaborate on the promotion of a three-shaft turboprop engine, incorporating
three-shaft Trent architecture and an M88 derived core, to be proposed for the
future A400M military transport aircraft.

Under the agreement, signed in Paris by FiatAvio S.p.A, Industria de Turbo
Propulsores S.A  (ITP), MTU Aero Engines, Rolls-Royce plc, Snecma Moteurs and
Techspace Aero,  the proposed engine will be based on
in-service technology and modules to provide customers with a low-risk
solution and lower life cycle costs.

Under the MoA, the companies intend to establish a joint venture company to
act as a single point of contact with customers.

For further information please contact:  

Martin Nield
Head of Communications - Defence and Energy
Tel:   [phone]
Fax:  [phone]
e-mail: [e-mail]