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1000th Rolls-Royce BR700 Engine Leaves Final Assembly in Dahlewitz

DAHLEWITZ, Germany, May 23, 2003 -- Rolls-Royce Deutschland today handed over the 1000th engine in the BR700 series to a customer. A representative of Boeing joined Rolls-Royce staff at Dahlewitz, the development and production location of the company, in celebrating the occasion of the delivery of a BR715 turbofan for the Boeing 717-200.

Timothy E. Hoeksema, Chairman and Chief Executive Officer of Midwest Airlines said: "Midwest Airlines congratulates the employees of Rolls-Royce who worked on the outstanding BR715 engine. This partnership has allowed us to launch our new fleet program with the Boeing 717-200, the most economical and fuel-efficient twinjet on the market today."

Axel Arendt, Chairman Rolls-Royce Deutschland and Group Executive Rolls- Royce plc, commented, "Today marks another milestone in the success story of Rolls-Royce Deutschland. The environmentally friendly engines from our Brandenburg production facility have impressively demonstrated their capability in service on shorthaul airline operations, which are extremely demanding due to their high frequency mission profile. With a departure reliability of 99.96 percent, the BR715 engines have set new standards in regional air transport. I am pleased that our high-technology 'Made in Germany' is actively contributing towards Midwest Airlines' competitive strength."

The Boeing 717 fleet that is in service with Midwest is powered by two BR715 turbofans and is the quietest aircraft of its class. The airliner's noise deflection is significantly below both present and planned official limits.

Compared with the requirements regarding emissions of noxious substances set by the International Civil Aviation Organisation (ICAO), the BR715 is 48 percent under the limit for nitrogen oxides, 65 percent below on carbon monoxide, 83 percent below on carbon dioxide and 98 percent below on unburnt hydrocarbons. These parameters make the BR715 the most eco-friendly engine of its class.

The BR700 series turbofans are the first and still the only civilian series jet engines built in Germany to have achieved international certification. Rolls-Royce Deutschland is Germany's engine manufacturer with a complete systems capability.

Rolls-Royce plc operates in four global markets -- civil aerospace, defence aerospace, marine and energy. It is investing in technology and capability that can be exploited in each of these sectors to create a competitive range of products.

The success of these products is demonstrated by the company's rapid and substantial gains in market share over recent years. As a result, engine deliveries have grown and the company now has a total of 54,000 gas turbines in service worldwide. The investments in product, capability and infrastructure to gain this market position create high barriers to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces and more than 2,000 marine customers, including 50 navies. The company has energy customers in nearly 120 countries. Rolls-Royce employs around 37,000 people, of which 22,000 are in the UK. Forty percent of its employees are based outside the UK -- including 5,000 in the rest of Europe and 8,000 in North America.

Most of the engines in service will have operational lives of 25 years or more, generating an assured aftermarket demand for the provision of spare parts and services. The company's strategy is to maximise aftermarket revenues, which have increased by 60 percent over the past five years due to the development of a comprehensive services capability.

Annual sales total nearly 6 billion pounds Sterling, of which over 40 percent currently comes from aftermarket services. The order book stands at more than 17 billion pounds Sterling, which, together with aftermarket demand, provides visibility as to future activity levels.

Rolls-Royce Deutschland has a workforce of around 2,000 divided between its two sites in Dahlewitz near Berlin and Oberursel near Frankfurt am Main. Rolls-Royce Deutschland is Germany's engine manufacturer, which offers a complete service from development through production to in-service support for aircraft engines.

The BR700 family of engines, developed in Dahlewitz, are the first German civilian jet engines to have international certification. Their distinguishing features are their low operating costs, high ease of maintenance and their unique environmental acceptability. The Rolls-Royce BR710 is the sole engine offered on the Gulfstream 500 and on the Gulfstream 550 and on the Bombardier Global Express long range business jets, as well as on the new Bombardier super-large business jet Global 5000. It has also been selected as the powerplant for the new British Nimrod MRA4 reconnaissance aircraft. The 100- seat Boeing 717-200 is powered by two more powerful Rolls-Royce BR715 turbofans.

The Oberursel plant manufactures components for the Rolls-Royce BR700 engines, and maintains and overhauls small gas turbines for civilian and military applications. The RTM322 engines for the NH90 helicopters of the German Bundeswehr, which were developed in collaboration with Rolls-Royce Turbomeca will also be assembled and supported there.