ST AEROSPACE RESPONDS TO FAA’S PRESS RELEASE ON PROPOSED CIVIL PENALTY CHARGE

Singapore, 21 January 2011 – We are disappointed with the Federal Aviation Administration (FAA)’s press release regarding a civil penalty proposal of US$1.025m against ST Aerospace’s US facility ST Aerospace San Antonio, L.P., ST Aerospace takes our safety obligations seriously and has in fact addressed the issues raised by the FAA way back in 2008.

Although we are concerned about the FAA’s notice, we are also comfortable with the fact that we co- operated with the FAA years ago to resolve their concerns and to implement quality controls to ensure that we continue to comply with the FAA’s drug-testing standards.
We believe that the most important facts in this matter are:
• Every one of the employees referred to in the FAA’s press release has passed their drug tests.
• We have effective controls in place to ensure continued compliance with the drug testing standards found in the FAA’s regulations.
• There are no allegations of current compliance issues.

We intend to communicate with the FAA to explain why their informal allegations are incorrect. Nonetheless, we are treating this matter very seriously and we will work closely with the FAA to resolve it.

ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering. Operating a global MRO network with facilities in the Americas, Asia Pacific and Europe, it is the world’s largest aircraft MRO provider with a global customer base that includes leading airlines, airfreight and military operators. ST Aerospace is an integrated service provider that offers a spectrum of maintenance and engineering services that include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; and aviation materials and management services, including Total Aviation Support. ST Aerospace has a global staff strength of more than 8,000 engineers and technical specialists. Please visit www.staero.aero.

Media Contact:
Belinda Ng
AVP/Head, Corporate Communications
ST Aerospace
Tel: (65) 6380 6176
Fax: (65) 6280 8213