ST Engineering’s Aerospace Arm Seals Component Repair Management MBH™ Contract With AirAsia : Singapore Technologies Engineering Ltd

Singapore, 12 July 2012 – ST Engineering’s aerospace arm, ST Aerospace and AirAsia jointly announced today that the companies have signed a 10-year agreement worth approximately US$80m (S$102m). The contract involves component repair management Maintenance-By-the-Hour (MBHTM) support for 75 of AirAsia’s Airbus A320 aircraft, and is expected to commence immediately.

ST Aerospace is currently supporting AirAsia on an existing component repair management MBHTM programme for 100 A320 aircraft. With this contract, ST Aerospace will effectively support 175 of AirAsia’s A320 aircraft.

“Through high aircraft utilisation and paramount importance placed on flight safety and quick turnaround time, AirAsia has managed to achieve high efficiency in operations to keep our costs low. ST Aerospace has been a reliable partner, consistently providing us with high quality and cost effective maintenance, repair and overhaul services. We have enjoyed 10 years of partnership, and we look forward to continuing this successful relationship.” ~ Tony FERNANDES, Group CEO, AirAsia

“ST Aerospace is honoured to further our partnership with AirAsia. This contract is a testimony to our performance and ability to provide our customers with safe and dependable maintenance, repair and overhaul solutions. It also reflects AirAsia’s confidence in ST Aerospace’s services over the last decade. ST Aerospace is fully committed to building our relationship with AirAsia as the airline continues to grow its operations worldwide.” ~ CHANG Cheow Teck, President, ST Aerospace

This contract marks the 10 years of partnership between ST Aerospace and AirAsia. ST Aerospace first provided AirAsia’s fleet of five Boeing 737-300 aircraft with component rotable management and support services in 2002. Through the years, ST Aerospace has steadfastly supported AirAsia’s fleet with an integrated range of solutions that includes airframe maintenance, avionics upgrades, cabin interior reconfiguration, component rotable and maintenance services, as well as engine MBHTM support. When it introduced its new fleet of 100 A320 aircraft in 2007, AirAsia extended its partnership with ST Aerospace for component repair management MBHTM services on this new aircraft fleet.

This contract 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.