Rolls-Royce Signs Agreement

Rolls-Royce PLC
20 July 2001













                                                                  20 July 2001



             ROLLS-ROYCE SIGNS $360 MILLION TOTAL CARE AGREEMENT

                          WITH CONTINENTAL AIRLINES



Rolls-Royce, the aerospace, marine and energy power systems group, today (20
July) announced the signing of a long-term $360 million maintenance support
agreement with Continental Airlines for its existing fleet of RB211-535E4B
aero engines. This brings the total of new aftermarket business announced this
year by Rolls-Royce to more than $2 billion.

The ten-year Total Care agreement involves the provision of comprehensive
maintenance, at a set cost, calculated on flying hours. Continental currently
has 41 Boeing 757-200s in service powered by RB211-535E4B engines. The work
will be carried out by Rolls-Royce at its Derby, UK facilities.

John Cheffins, President Civil Aerospace, Rolls-Royce, said: 'Continental is
an important customer for Rolls-Royce, and this new agreement reflects the
fact that individually tailored Total Care support packages, which offer
reliable long-term relationships and predictable costs, are becoming an
increasingly popular option for our customers.'

Rolls-Royce has more than doubled its market share of repair and overhaul on
its civil engines to 55 per cent in the past five years. Revenues from
aftermarket and associated services currently account for 38 per cent of the
company's turnover.

This agreement with Continental, plus existing contracts with American
Airlines and US Airways, means that 60 per cent of RB211-535s in service on
over 200 aircraft owned by US-based airlines now operate under Rolls-Royce
Total Care support packages.

More than 1,100 RB211-535s are in service with over 50 airlines worldwide and
have accumulated 21 million flying hours. The engine has been chosen by 80 per
cent of Boeing 757 operators.





                                      2

Continental, the world's sixth largest airline, operates more than 2,500 daily
flights, serving 136 US and 92 international destinations, including 18 in
Europe and the Middle East, from its major hubs in New York/Newark, Houston
and Cleveland. Rolls-Royce RB211-535E4B engines entered service with
Continental's Boeing 757-200 aircraft in 1994 and have since amassed more than
1.3 million hours on wing.

Notes to Editors:


    Total Care reflects the increasing role played by predictive maintenance
    which gives fleet managers the opportunity to access online details of
    real-time engine performance provided by air-to-ground computer links. The
    capability is provided by Data Systems & Solutions (DS&S) a joint venture
    between Rolls-Royce and Science Applications International Corporation. DS
    &S provides systems integration, integrated asset management and
    maintenance solutions to customers in aerospace, defence, marine and
    energy markets.



For further information please contact:

Emma Medd-Sygrove

Communications Manager - Civil Aerospace

Rolls-Royce plc

tel: [phone]

fax: [phone]

email: [e-mail]

Rolls-Royce website: www.rolls-royce.com