Re Agreement

Rolls-Royce PLC
28 August 2002

                                                                 28 August, 2002



ROLLS-ROYCE SIGNS TEN-YEAR TRENT FLEET HOUR AGREEMENT WITH CHINA EASTERN
AIRLINES





Rolls-Royce and China Eastern Airlines announced today (28 August) that they had
signed a $100 million contract for a 10-year fleet hour agreement covering the
Trent 500 engines powering the airline's new fleet of Airbus A340-600s.



China Eastern Airlines has ordered five of the aircraft, which carry up to 380
passengers and have a range of 7,700 miles, allowing them to fly trans-Pacific
routes such as Shanghai - Los Angeles. They are each equipped with four 56,000lb
thrust Trent 556 engines. Deliveries begin in March 2003.



Ye Yigan, Chairman, China Eastern Air Group, said: 'China Eastern Airlines is
very pleased to have reached this agreement with Rolls-Royce. I believe it will
assist us to maintain our latest fleet of A340-600s with which we are enlarging
our network, and ensure safe and reliable operations.'



Charles Cuddington, Managing Director - Airlines, Rolls-Royce, said: 'This is an
important milestone because it signals the first Trent operation in mainland
China. It also extends a valued relationship with China Eastern Airlines and
meets their requirement for fleet support at a predictable, fixed-rate cost.'



Fleet hour agreements are part of a broad range of Total Care packages offered
by Rolls-Royce. The menu of options includes sophisticated predictive
maintenance tools provided through the Rolls-Royce joint venture, Data Systems &
Solutions, engine and aircraft leasing and management, spares provisioning,
internet-based services providing global links between customers and suppliers,
and the world-wide network of Rolls-Royce aero repair and overhaul facilities.



The provision of aftermarket services is an important part of the company's
strategy. Aftermarket service revenues comprised 41 per cent of sales in the
first half of 2002, and long-term service agreements represent 20 per cent of
the order book.



The Trent 500 is the sole engine for both the A340-600, which entered service
with launch customer Virgin Atlantic earlier this month, and the
ultra-long-range A340-500, capable of carrying 313 passengers over 8,700 miles.



More than 400 Trent 500s have been ordered by a total of 13 customers.



For further information contact:

Martin Brodie

Head of Corporate Media Relations

Rolls-Royce plc

Tel: 44 + (0) 207 222 9020

E-mail: [e-mail]




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