Press Archive 2005

Munich – The holders of the 8¼% Senior Notes of MTU Aero Engines Investment GmbH have consented to amendments relating to certain provisions of the terms of  the Senior Notes with a majority of 79,6% (minimum consent rate is 50%). As a result MTU will, as of today, be able to satisfy its reporting obligations in connection with the Senior Notes by providing consolidated financial and other information with respect to MTU Aero Engines Holding AG, MTU Aero Engines Investment GmbH's immediate parent. This will reduce the burden of administration, reporting, book-keeping and auditing.

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Munich –The supervisory board of MTU Aero Engines Holding AG in today's meeting appointed Dr. Rainer Martens to the board of management for three years, effective as of July 1, 2006. Dr. Martens will take over the engineering and production responsibilities of Dr. Michael Süß, whose contract will expire in 2006.

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Vancouver – CanJet Airlines’ fleet of B737-500 aircraft will have all of its CFM56-3 engines repaired and overhauled by MTU Maintenance Canada. Valued at 20 million euros ($27.6M Cdn), the contract involves 16 engines operated by CanJet and leased from Ft.Worth, TX- based aircraft lessor Q-Aviation.  The term of the contract is five years, with optional renewals and it was inked in late November this year.

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Munich – MTU Maintenance Hannover has cracked the Asian CF6-50 market: the first Asian customer to have CF6-50 engines maintained by the MTU MRO experts is Biman Bangladesh Airlines. The deal involves 19 CF6-50C2s, including spare engines. The value of the three-year contract is 40 million euros. The first Biman engine is expected to show up in Hannover in early December.

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Bonn – MTU Aero Engines is expanding its military engine maintenance activities. The company has signed a contract with the German Federal Office of Defense Technology and Procurement (Bundesamt für Wehrtechnik und Beschaffung - BWB) on the expansion of the existing industry-military cooperative model of engine maintenance ("Cooperative Model"). The agreement widens the scope of maintenance, which had so far involved only the Eurofighter EJ200 engine, to include also the RB199 (Tornado), J79 (Phantom) and RR250-C20 (BO 105 helicopter) powerplants, all of which will be repaired under MTU's industrial leadership. The ten-year contract is worth totally 370 million €, of which approximately 100 million € are additional sales for MTU. The Bundeswehr (German armed forces) will save 37 million € through the deal.

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Munich – MTU Aero Engines Holding AG continues to be on a growth track. In the first nine months of 2005 the company increased its sales as compared with the prior year period by 12 %, from 1,384.3 million € to 1,545.6 million €. The operating profit (EBITDA - earnings before interest, taxes, depreciation and amortization) saw an above-average increase by 35 %, from 123.5 million € to 166.6 million €. Cash flow from operating activities increased 215 %, from 95.2 million € as of September 2004 to 300.0 million € as of September 2005. “Also in the third quarter of 2005, MTU Aero Engines has continued its positive upward trend with strong growth in earnings. The targets which we had set ourselves for the first nine months of this year were achieved and even bettered,” states Udo Stark, President and CEO of MTU Aero Engines Holding AG.

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Munich – On Wednesday, November 23, 2005, MTU Aero Engines will repay 30 million euros of its high-yield bond. Repayment will be made at the contractually agreed rate of 108.25 percent plus accrued interest. The remaining portion of the bond then will stand at 165 million euros.

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Munich – Upon a proposal by the holding, the Munich register court has named Dr. Jürgen M. Geißinger, President and CEO of INA-Holding Schaeffler KG, Herzogenaurach, Germany, to the supervisory board of MTU Aero Engines Holding AG, effective October 4, 2005.

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Munich / Kuala Lumpur – Airfoil Services Sdn. Bhd. (ASSB), an MTU Aero Engines and Lufthansa Technik affiliate, is going to extend its activities: novel advanced repair techniques and a wider product portfolio will grow the Kuala Lumpur operation's sales, now standing at almost U.S. $5 million, to four times its present level, or $20 million, by 2010. The shop hopes to attract new customers and add more people to its payroll. ASSB specializes in the repair of aero engine blades for mostly MTU's maintenance segment and Lufthansa Technik.

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Munich - MTU Aero Engines will be retrofitting 40 T64 engines powering the German armed forces’ CH-53 helicopters. Worth some 20 million euros, the recently concluded deal follows up on a 2003 agreement MTU has with the services to retrofit 46 T64-7 engines to the -100 standard. The first tranche is nearing completion. A third one is scheduled: The follow-up order for the optimization of another 40 engines is slated in 2007 or 2008.

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Munich – Early in September, the engine industry's who's who convened in Munich: some 460 specialists from around the world attended the XVII. International Symposium for Airbreathing Engines (ISABE), the largest attendance ever. The industry's biggest meeting takes place every two years, each time on a different continent. The Munich event was organized by MTU Aero Engines and the DGLR German Society of Aeronautics and Astronautics. "For MTU, it is a great honor to host ISABE," emphasized Udo Stark, the company's president and CEO. The Symposium was held under the aegis of Dr. Klaus Steffens, the former MTU Aero Engines chief executive.

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Munich – Debut at MTU Aero Engines: In a first for the company, Germany's leading aero engine manufacturer has honored ten of its suppliers. The Supplier Award was bestowed during this year's Supplier Day on Wednesday, September 14 in Munich. Selections were made in four categories: costs, quality, logistics and cooperation. The winners accepted their prizes at the Flugwerft Oberschleißheim museum from MTU Aero Engines' COO Dr. Michael Süß.

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Munich – MTU Aero Engines this Thursday, September 15, repaid 80 million euros of its high yield bond. This reduces the still outstanding amount of the bond to 195 million euros, from 275 million euros. Repayment was made at the contractually agreed price of 108.25% plus accrued interest. The 10-year bond, with a final redemption date of 2014, was issued in March 2004 and carries 8.25% interest. "Our strong liquidity enabled us to make this partial repayment," explains Reiner Winkler, MTU Aero Engines' chief financial officer. "This way we keep reducing our annual interest burden. Over a year's time, this reduction of the high yield bond will in the future cut our interest payments by more than 4 million euros."

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Munich – The stock of MTU Aero Engines Holding AG (stock symbol MTX) will be included in the midcap MDAX index as of Monday, September 19, 2005. This follows from a Monday, September 5, 2005, decision of the Deutsche Börse, the German stock exchange operator.

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Ludwigsfelde – The Herculean task is accomplished: On the dot Monday, August 15, Western Europe's largest turboprop test cell was completed at MTU Maintenance Berlin-Brandenburg in Ludwigsfelde. The new test facility was built under what currently is Germany's most significant military aviation project: the emerging Airbus A400M military airlifter. The new test facility will accommodate the production acceptance testing of all TP400-D6 engines produced in Europe.

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Munich – MTU Aero Engines Holding AG has successfully completed the first half-year of 2005. Sales increased by about 125 million € (+14 %) to 1,025.7 million €. Earnings before interest, taxes, depreciation, amortization and special items (EBITDA), calculated on a comparable basis, improved by 59 % from 64.5 million € to 102.3 million €. Especially positive is the development of cash flow from operating activities, which increased from 50.9 million € to 232.8 million €. “We are satisfied with the course of business and the results for the first half of the year 2005,” commented Udo Stark, president and CEO of MTU Aero Engines Holding AG. “The results attained confirm our growth targets for 2005 in sales and earnings, and the positive trend in liquidity permits further improvement of the capital structure. This has also reflected in the positive development of the price of our share since the IPO.”

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Hannover – MTU Maintenance Hannover, an MTU Aero Engines Holding AG affiliate, has been awarded a contract from JetBlue Airways for the maintenance of all V2500 engines operated by the airline. This involves up to 360 engines powering JetBlue’s Airbus A320 family fleet. The sole-supplier contract runs for 10 years and is worth approximately 750 million euros. The fly-by-hour agreement can be renewed twice for five years each.

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Munich – Following on from the strong performance in 2004, MTU Aero Engines continued its successful development in the first quarter of 2005, achieving double-digit revenue growth. Strong sales of spare parts had a particularly significant effect on the overall result, which nearly doubled on a year-on-year basis. Cash flow from operating activities2 also increased substantially, mainly due to customer pre-payments during the first quarter. MTU Aero Engines presented its quarterly figures according to IFRS today on Tuesday, 10 May 2005.

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Munich –Today, Thursday, April 28, MTU Aero Engines GmbH published its business figures for the year 2004. The company has significantly enhanced its result and substantially improved its capital structure through the repayment of bank liabilities ahead of schedule. Sales were slightly up and the order book grew apace. The accounting, for the first time in accordance with IFRS, was influenced in particular by special effects deriving from the sale of the company.

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Munich – The Clean technology demonstrator has surpassed MTU's expectations: at Stuttgart University's altitude test facility, MTU's components met and in part bested all objectives. The low-pressure turbine's efficiency came in more than one percentage point better than anticipated, reported MTU Aero Engines. The company has since presented the findings of its initial evaluation of the test data for its components.

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Munich – MTU Aero Engines is revamping its credit structure and thereby taking a further step towards becoming a company with investment grade: MTU has concluded a loan agreement with Commerzbank, HypoVereinsbank, Deutsche Bank and UBS for a total credit line of 250 million euros. The agreement was signed on March 24, 2005. It supersedes the syndicated credit agreement for an overall amount of 620 million euros that was associated with the sale of MTU at the beginning of 2004. The new credit line serves to cover existing guarantees and the remaining indebtedness to banks and to create reserves for possible liquidity requirements. “The new loan agreement secures MTU an interest rate advantage of almost 3 percentage points,” stated Udo Stark, president and CEO, in Munich today.

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Hannover – The Langenhagen repair experts had a good start into the new year: Since early January, MTU Maintenance Hannover is providing service support for CF6-50C2 engines of France's Europe Airpost, a mail carrier.

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Munich – MTU Aero Engines has further improved its capital structure: As of today, Tuesday, February 1, the company has repaid loans in the amount of 79 million euros ahead of schedule. Bank liabilities are thus reduced to 106 million euros, while the annual gross interest load is decreased by some 4 million euros. “MTU already took important steps in this direction in the past year with two off-schedule repayments - 130 million euros in October and 70 million euros in November. With the repayment of a further 79 million euros we are systematically continuing MTU’s debt clearance,“ explained Udo Stark, president and CEO of MTU Aero Engines.

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Ludwigsfelde, Germany – MTU Maintenance Berlin-Brandenburg has inked a seven-year contract with Sahacogen in Thailand for the maintenance of two LM6000 gas turbines operated by the listed, independent power company. With Sahacogen, the Ludwigsfelde-based engine shop added a second Thai power producer to its list of long-term customers last year, after it had concluded a similar contract with Rojana Power earlier in 2004.

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