ST Aerospace clinches $520m worth of contracts in 2Q2014

Singapore, 14 July 2014 – ST Aerospace today announced that it has secured
new contracts worth $520m in the second quarter (2Q) of 2014. These new
orders span the aerospace sector repertoire of capabilities covering
airframe, component and engine maintenance, freighter conversion, cabin
modification, engine wash and pilot training.

Included in the 2Q2014 contracts is a five-year agreement with a regional
US airline for heavy maintenance of 42 Embraer E-170 and E-175 aircraft at
the aerospace sector’s San Antonio facility. This came shortly after
clinching a two-year agreement in 1Q2014 for heavy maintenance of 20
Embraer E-190 aircraft.

In 2Q2014, ST Aerospace redelivered a total of 229 aircraft for airframe
maintenance and modification work. In addition to airframe redeliveries, a
total of 11,191 components, 56 landing gears and 49 engines were processed,
while 2,505 engine washes were conducted for both commercial and military
customers.

The second quarter’s aircraft redeliveries included four additional Boeing
767-300 aircraft to Air Canada rouge, after a full turnkey cabin
reconfiguration programme. This follows the completion of the first two
aircraft in 1Q2014.

On aircraft capability, ST Aerospace’s airframe facility in Guangzhou has
received Part 145 certifications from the Civil Aviation Administration of
China, the European Aviation Safety Agency and the US Federal Aviation
Administration (FAA) respectively, allowing it to extend maintenance
services to aircraft operators from these regions.

On component capability development, ST Aerospace is setting up new repair
and overhaul capabilities in Singapore, for the first batch of UTC
Aerospace Systems’ electrical and air management system components
installed on the Boeing 787 Dreamliner aircraft. Concurrently, the
aerospace sector’s Scandinavian facility has added new component
capabilities for the Boeing 737NG, 767 and Airbus A330 aircraft.

Leveraging new technologies, ST Aerospace’s investment casting foundry
started using 3D printing for rapid prototyping and small scale production
of parts.

In the US, VT Aerospace has acquired 100% equity interest in Aviation
Academy of America, a FAA Part 141-approved flight school, to grow the
aerospace sector’s pilot training business. In Singapore, ST Aerospace’s
training academy was awarded an extension contract to train another 40
cadet pilots for Juneyao Airlines.

The above developments are not expected to have any material impact on the
consolidated net tangible assets per share and earnings per share of ST
Engineering for the current financial year.