St Engineering's Aerospace Arm Awarded Two Contracts Worth $393 M by RSAF

(Singapore, March 26, 2007) -- Singapore Technologies Engineering Ltd (ST Engineering) today announced that its aerospace arm, Singapore Technologies Aerospace Ltd (ST Aerospace), has secured two contracts from the Republic of Singapore Air Force (RSAF). The first is for the modernisation of the RSAF's fleet of 10 C-130 transport aircraft, and the other is a Total Aviation Support programme for the RSAF's fleet of 16 A-4SU / TA-4SU Skyhawk aircraft (also known as RSAF's Advanced Jet Training). Total value of both contracts is $393m.

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.


The first contract involves an upgrade of the C-130's avionic systems including the aircraft's navigation, communications and flight management systems to meet evolving air traffic regulatory requirements. ST Aerospace's scope of work will also include new systems to improve the reliability and maintainability of the aircraft, lowering life cycle costs. Through this programme, ST Aerospace will equip the C-130s with a common avionics baseline that will reduce the crew's workload through automation of tasks. The programme is expected to commence in 1Q2007 and stretch over seven years. This service life-extension programme will require collaboration between ST Aerospace and a number of equipment manufacturers, with ST Aerospace leading.

The second contract commenced in March 2007 and involves Total Aviation Support for a period of four years. ST Aerospace will provide a full spectrum of maintenance, engineering and logistics support - covering flight line operations, aircraft, engines and component maintenance, engineering services, inventory and warehouse management - for the RSAF's Advanced Jet Training (AJT) detachment in Cazaux, France. ST Aerospace will deploy 110 personnel to Cazaux in support of the programme. This contract is awarded to ST Aerospace's wholly-owned subsidiary, ST Aerospace Engineering Pte Ltd (STA Engrg). Prior to this contract, ST Aerospace had provided depot maintenance for RSAF's A-4 fleet in Cazaux since 1999.

"We work closely with the RSAF to support its various operations requirements. We are pleased to be able to add value to the RSAF through the upgrade of the C-130 fleet and Total Aviation Support for the A-4 fleet in Cazaux. These contracts further increase the scope of our support of the RSAF through capability and reliability enhancement of its fleet of C-130s and by bringing our comprehensive capabilities to support RSAF's operations beyond Singapore." ~ Tay Kok Khiang, President, ST Aerospace

Source : ST Engineering Ltd.