Re Contract

Rolls-Royce PLC
18 December 2000

                                                                     
                                                     17 December 2000

         VIRGIN ATLANTIC SELECTS ROLLS-ROYCE TRENT FOR A3XX

Rolls-Royce Trent 900 engines have been selected by Virgin Atlantic
to power up to 12 Airbus Industrie A3XX super jumbo airliners.  The
value of the engine business is approximately $600 million.

Virgin Atlantic has chosen the 68,000lb-75,000lb thrust Trent 900 for
six A3XXs on firm order and for an additional six options.
Deliveries of the aircraft are scheduled to begin in mid 2006 through
to 2008.

Sir Richard Branson, Chairman, Virgin Atlantic, said: 'After a hard-
fought competition, we are delighted to be selecting Rolls-Royce, who
will supply us with an outstanding engine for what will be an
outstanding plane. I am especially pleased that a great British
company is leading the way in the development of this revolutionary
aircraft.'

Sir Ralph Robins, Chairman of Rolls-Royce plc, said: 'This decision
by Virgin Atlantic once again demonstrates that our strategy of
offering a family of engines for the new generation of large aircraft
continues to satisfy airline demands.  The Trent is the only engine
family that can do this.'

The A3XX will join the Virgin Atlantic fleet of up to 18 Trent 500-
powered A340-600 aircraft selected by the airline in 1997.   Last
week, the Trent 500 achieved airworthiness certification ahead of
schedule and will begin its flight qualification on the first A340-
600 in Toulouse, France early next year.  Virgin Atlantic will be
first operator to fly the aircraft when it enters service in mid
2002.

This latest Trent-powered A3XX order follows the selection of up to
25 Trent 900-powered A3XXs by Singapore Airlines in October.  The
carrier, which owns 49 per cent of Virgin Atlantic, will be first to
operate the A3XX in 2006.

Subject to launch conditions being met, the Trent 900 will be the
lead engine for the joint certification programme with Airbus.


For more information please contact:
Martin Johnson
Head of Communications - Civil Aerospace
Tel:  + 44 1332 248688
Fax: + 44 1332 248972
Email: [e-mail]
Rolls-Royce website: www.rolls-royce.com