ST AEROSPACE SEALS NEW CONTRACTS WORTH $480M IN 1Q2013

Singapore, 10 April 2013 – ST Aerospace today announced that it has sealed new contracts worth about $480m in the first quarter of 2013. The contracts are for airframe, component and engine maintenance, as well as engineering and development, which will be carried out through its global maintenance, repair and overhaul (MRO) network.

A total of 180 aircraft were redelivered for airframe maintenance and modification work in the first quarter of 2013. This is in addition to the five Boeing 757-200 freighters converted through its MRO network. Besides airframe redeliveries, ST Aerospace processed 15,161 components, 72 landing gears and 60 engines for both commercial and military customers.

Gaining momentum in the cabin configuration business, ST Aerospace has secured contracts and letters of intent with four airlines, to provide cabin reconfiguration solutions for a total of six Airbus A330-343 and 31 Boeing 767-300 aircraft. At the same time, ST Aerospace has co-developed a new long-haul economy aircraft seat with Japanese aircraft seat manufacturer Tenryu Aero Component, as it extends into cabin interior product manufacturing. Named ‘Ergo’, the ergonomically designed seat boasts optimal comfort and a relaxing space for airline passengers. The seats will be featured at the Aircraft Interiors Expo 2013 from 9 to 11 April in Hamburg, Germany.

ST Aerospace is stepping up its participation in the engine leasing business. Its wholly owned subsidiary, ST Aerospace Engines, has injected additional capital into its 50%-owned associate company, Total Engines Asset Management, bringing its total share capital contribution to US$8.21m (S$10.15m). It has also expanded its customer base by securing new engine leasing contracts during the quarter.

In the US, ST Aerospace’s affiliate, EcoServices, has exercised its purchase option for the use and acquisition of intellectual property assets associated with the engine wash business. Following this, EcoServices now fully owns, manages and protects its own portfolio of intellectual property assets required to operate the business.

On capability development, following the completion of ST Aerospace’s investment of 35% equity interest in Elbe Flugzeugwerke (EADS EFW), ST Aerospace has commenced the A330P2F engineering development phase for the freighter conversion programme. Additionally, EADS EFW will serve as ST Aerospace’s European MRO centre, bringing convenience and value-added solutions to customers in the region.

The developments above 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.