ST Aerospace signs joint venture with Wings Capital Partners

Singapore, 6 November 2013: ST Aerospace announced today that its wholly
owned subsidiary, ST Aerospace Resources Pte. Ltd. (STA Resources) has
signed a joint venture agreement with Wings Capital Partners Holdings Ltd,
to set up WingStar Pte. Ltd. (WingStar).

Based in Singapore and equally owned (50:50) by the two shareholders,
WingStar will build on opportunities created by global fleet expansion and
renewal to acquire aircraft for lease, conversion or part out. Under the
joint venture agreement, the shareholders plan to build up a portfolio of
mid-life and end-of-life aircraft assets which will initially include
Airbus A320 and Boeing 737NG families of aircraft.

WingStar will leverage Wings Capital Partners’ extensive relationships and
experience in deal sourcing, financing, leasing and marketing, alongside ST
Aerospace’s comprehensive technical expertise in airframe, engine and
component maintenance repair and overhaul, aircraft tear-down, parts
trading, passenger-to-freighter conversion, as well as aircraft inspection
and technical asset management, to bring value added services to the
aircraft operators globally. WingStar is expected to commence operations
by early 2014.

“This is an extraordinary opportunity to team up with ST Aerospace to
create an enterprise with the technical and financial skills necessary to
tap on opportunities in the used aircraft market.”
~ Stephen HANNAHS, Managing Director & CEO, Wings Capital Partners

“This joint venture extends ST Aerospace’s total aviation support offering,
adding a new dimension to how we can support airline customers on mid to
end-of-life aircraft. We look forward to working with Wings Capital
Partners to build up aircraft solutions for the global market.”
~ CHANG Cheow Teck, President, ST Aerospace

STA Resources is a wholly owned subsidiary of ST Aerospace, a new vehicle
set up to focus on asset management.

Wings Capital Partners is an affiliate of Wings Capital Partners Management
LLC. The latter is an investment partnership between Stephen Hannahs, his
management team, and Two Sigma Private Investments, that will make private
equity investments, provide advisory services, and acquire mid- to
end-of-life aircraft. Stephen Hannahs co-founded the Aviation Capital
Group in 1989, and served as its Chief Executive Officer as the company
grew into a leading global aircraft lessor with a portfolio of more than
250 aircraft and over 90 airline customers in 45 countries. Two Sigma
Private Investments is the private markets investment division of Two Sigma
Investments, a leading technology company that applies a rigorous,
scientific method-based approach to investment management. Two Sigma
Private Investments seeks to partner with managers to build businesses with
flexible, long-term capital.

The joint venture is 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.