Farnborough, London, 12 July 2012 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 AirAsias 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 AirAsias 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 AirAsias confidence in ST Aerospaces 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 AirAsias fleet of five Boeing 737-300 aircraft with component rotable management and support services in 2002. Through the years, ST Aerospace has steadfastly supported AirAsias 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.

AirAsia, the leading and largest low-cost carrier in Asia, services the most extensive network with 150 routes. Within 10 years of operations, AirAsia has carried over 140 million guests and grown its fleet from just two aircraft to approximately 114. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with established operations based in Malaysia, Indonesia, Thailand and Philippines servicing a network stretching across all ASEAN countries, China, India, Sri Lanka and Australia. This is further complemented by AirAsia X, its low-cost long-haul affiliate carrier that currently flies to destinations in China, Australia, Taiwan Iran, Korea and Japan. AirAsia was named the Worlds Best Low Cost Airline in the annual World Airline Survey by Skytrax for three consecutive years (2009, 2010, 2011).

ST Aerospace (Singapore Technologies Aerospace Ltd) is the aerospace arm of ST Engineering. Operating a global MRO network with facilities and affiliates in the Americas, Asia Pacific and Europe, it is the worlds largest commercial airframe 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 http://www.staero.aero.

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ST Aerospace Seals Component Repair Management MBHTM Contract with AirAsia