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Rolls-Royce Business Exceeds $1.6 Billion at Farnborough

31 July 2000

    LONDON - Rolls-Royce plc said Friday that the total amount of business 
announced at Farnborough 2000 this week exceeded $1.6 billion.  The company 
also issued forecasts that show a potential value of $200 billion for high-thrust 
Trent engines over the next 20 years and a potential defence aerospace market 
worth more than 250 billion pounds sterling over the next 10 years.

    The civil aerospace market generated orders across the range of
Rolls-Royce engines at Farnborough and there were also important developments
in the company's defence, e-commerce and Total Care activities.

    Trials were launched of aeromanager, the new Rolls-Royce web-based
maintenance portal.  One of the services offered by aeromanager is
enginedatacenter.com, for which Condor, the German airline, has become the
first customer.

    Rolls-Royce Chief Executive John Rose said at Farnborough today:  "Not
only is US$1.6 billion dollars significant business for Rolls-Royce, it will
also benefit many other aerospace companies, particularly in the UK.
Rolls-Royce has about 22,000 employees in its aerospace businesses, including
civil, defence and maintenance.

    "With our suppliers and subcontractors, it means our announcements at
Farnborough this will benefit about one third of the 155,000 employees in the
UK's aerospace industry."

    An agreement signed at the show with Boeing to offer the Trent 600 on
future developments of the Boeing 747 and 767 confirms that the Rolls-Royce
Trent is the only family of engines available for current and future
wide-bodied aircraft.

    The Trent 900 is the datum engine for the Airbus Industrie A3XX, for which
firm aircraft commitments were signed at Farnborough, and the A340 flying test
bed for theTrent 500, which will power all A340-500/-600 aircraft, was on
display at the show.

    Singapore Airlines converted three options for Trent 800-powered Boeing
777s into firm orders, business worth US$90 million dollars to Rolls-Royce.

    Final contracts were also signed with Switzerland's SR Technics to create
TEMRO, a joint venture for Trent engine maintenance in Europe.

    The AE 3007 engine won business worth nearly US$1.3bn dollars, including
applications on two new versions of the successful Embraer RJ 135/145
aircraft.  Continental Express launched a longer range version of the ERJ 145,
with a US$1.02 billion dollar order and maintenance agreement for up to
175 aircraft.

    The AE 3007 will also power a new Embraer corporate jet, the ECJ 135,
which was launched by Swift Aviation Services of Arizona, resulting in
US$160 million worth of business for Rolls-Royce.


    Executive Jet Services signed a US$103 million dollar Power by the Hour
(R) agreement for AE 3007 engines which power its fleet of Cessna Citation X
aircraft. The AE 3007 also received its first order in China, worth
US$30 million dollars, to power five Embraer RJ 145s for Sichuan Airlines.

    The International Aero Engines' V2500 engine generated business worth
US$260 million dollars for Rolls-Royce as its share of orders placed by
S.A.L.E, British Airways, Monarch, America West and British Midland for Airbus
Industrie A320 family.

    Of the 250 billion pounds defence aerospace forecast, only around 15 per
cent of this is likely to be through traditional engine supply, while more
than 40 per cent will come from supplying spares, parts and repair activity.
The remaining business, more than 40 per cent, will be in providing and
supporting complete systems and platforms.