ST Aerospace secures about S$320M worth of maintenance contracts in 1Q2011

Singapore, 18 April 2011 – ST Aerospace announced new maintenance contracts with a total value of about S$320m in the first quarter of 2011. Ranging from three months to 12 months, these contracts for the Aircraft Maintenance & Modification, Component Total Support and Engine Total Support businesses will be carried out at its facilities in the Americas, Asia Pacific and Europe.

The Aircraft Maintenance & Modification (AMM) business scored new airframe contracts involving line maintenance, base maintenance, heavy maintenance, passenger-to-freighter (PTF) conversion and interior refurbishment on various commercial and military aircraft types, including Airbus A300, A320 and A330, Boeing 747, 757, 767, DC9, DC10, MD11, C130 Hercules, F16 Falcon, Fokker 50 and Super Puma.

The Component Total Support (CTS) business secured new component contracts, including Maintenance-By-the-Hour (MBH™), avionics and mechanical component maintenance, aerostructures and landing gear repair and overhaul.

The Engine Total Support (ETS) business clinched new engine maintenance contracts, which include on-wing maintenance, off-wing maintenance, technical management and asset management on various engines types, including CFM56, Pratt & Whitney JT8D, F100, F110, Rolls-Royce Allison T56, General Electric J85, F404, Honeywell T53, T55, and Turbomeca Makila.

In the first three months of this year, ST Aerospace redelivered 144 aircraft to various customers, for airframe related maintenance and modification work. For PTF conversions alone, it has redelivered a total of five converted freighters in 1Q2011. Additionally, ST Aerospace has serviced 58 engines and 11,971 components for both commercial and military customers.

During the quarter, ST Aerospace inducted the first Boeing 757-200 into its Singapore facility for passenger-to-passenger/cargo (combi) (PTC) conversion. This follows the recent contract awarded by Guggenheim Aviation Partners, LLC to perform a PTC conversion for TNT Airways S.A. The aircraft is expected to be redelivered by end 2011. In the same period, work was secured for the new wide-body hangar in San Antonio and it has obtained the business licence for its Guangzhou joint venture. Additionally, ST Aerospace’s Panama facility received certification from the Administración acional de Aviación Civil (Argentina) for Boeing 737, Airbus A320 and Embraer E190 aircraft types. ST Aerospace’s test cell in Xiamen, China was also correlated and it has received approval from the Civil Aviation Administration of China.

In the first quarter of 2011, ST Aerospace’s brand new Gulfstream G550 made its first revenue flight. The G550 is the newest addition to its private charter fleet, comprising Beechcraft King Air C90, Bombardier Learjet 35, Learjet 45 and Eurocopter EC120.

The contracts 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.