---

Rolls-Royce and SR Technics Sign Up for New Joint Venture

26 July 2000

Rolls-Royce and SR Technics Sign Up for New Joint Venture

    ALDERSHOT, England - Farnborough International Air Show -- Rolls-Royce and 
Switzerland's SR Technics, the wholly-owned maintenance subsidiary of SAirGroup, 
today signed final contracts establishing a new joint venture to support 
operators of Trent aero engines in Europe and Africa.

    The new company name, TEMRO, was announced at a signing ceremony at the
Farnborough Air Show.  It will begin operating next year.

    Hans Ulrich Beyeler, Chief Executive Officer of SR Technics, said:  "We
will work with Rolls-Royce as equal partners.  TEMRO will enable expansion of
our product portfolio and our range of services to include the Rolls-Royce
Trent family."

    Ian Lloyd, Managing Director, Rolls-Royce Aero Repair and Overhaul, said
the formal agreement to create TEMRO marked a key element in the expansion of
the company's Trent support global network.  "This complements our existing
joint venture facilities in Hong Kong, Singapore and Texas, USA.  We're
delighted to combine SRT's well-established maintenance services operations
with our own plans for expansion of aftermarket activities," he added.

    Maintenance of Trent 500 and Trent 700 engines will be carried out at
SRT's facilities in Zurich while work on Trent 800s will be handled by
Rolls-Royce in Derby.

    SRT's sister company, Swissair, is among 10 customers for the new
ultra-long-range version of Airbus Industrie's A340 for which the Trent 500 is
the sole engine.  It has placed orders for nine firm plus ten option A340-600s
with entry into service in 2002.