ST Engineering and Adam Aircraft Sign Strategic Partnership for Very Light Jet and Piston Aircraft
MicroLightJets.com News
 Englewood, CO, February 23, 2006—— Singapore Technologies
Engineering Ltd (ST Engineering), through its aerospace arm, Singapore
Technologies Aerospace Ltd (ST Aerospace), today signed a letter of intent (LOI)
with Adam Aircraft to establish a strategic partnership to address the very
light jet (VLJ) and piston aircraft market segments.
Under the partnership, ST Aerospace will provide engineering, logistics
(including components), maintenance, repairs and overhaul (MRO) support for
VLJ and the twin piston aircraft designed by Adam Aircraft. Tapping on ST
Engineering's strength in these areas, Adam Aircraft seeks to lower the cost
of ownership and provide total aviation support for its light jet and piston
aircraft. The partnership will also provide ST Aerospace with the option,
exercisable within seven years, to invest up to US$50m in the company.
This partnership 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.
Adam Aircraft is based in Englewood, Colorado, and has staff strength of
more than 550. The company specializes in the design and manufacture of
all-composite very light jets and piston aircraft, and to date has an order
book of over 350 for its A700 VLJ and A500 twin piston aircraft, valued over
US$700m.
VLJs fit into an emerging market category in the US and globally.
Aircraft in this category use jet engines and are at a price range that
competes with the traditional propeller-driven small aircraft. The new
category is aligned between general aviation aircraft and small commercial
planes that typically cost between US$4m and US$15m. VLJs cost between
US$1.5m and US$3.0m and seat between three to ten passengers. They are
well-suited as air taxis as they can transport passengers regionally without
routing through aviation hubs, saving time, and can operate on short runways
of 3,000 feet. Buyers of VLJs range from fractional owners, charter
operators, and corporations to high-net-worth individuals.
"Being a young company, we are pleased to be associated with the
world's largest third-party MRO service provider, ST Aerospace, which can
provide not only first class MRO services for our customers but can also
help our marketing efforts through their global footprint. Adam Aircraft
expects to have a leading position in the twin piston and very light jet
markets in North America and eventually, globally. We are excited about
having a global engineering team from ST Aerospace as our strategic partner,
and together we will be able to provide a wide range and depth of expertise
and capabilities to support Adam Aircraft's rapid growth." - Rick Adam,
CEO, Adam Aircraft
"Adam Aircraft represents a new strategic partner and customer for ST
Aerospace. In addition, it presents us with the potential to tap into an
emerging and promising VLJ market and the latest composite technology. The
Adam Aircraft partnership builds upon our strengths in MRO, aircraft
logistics and engineering, and extends our range of relationships with
OEMs." - TAN Pheng Hock, President and CEO, ST Engineering
"We welcome this strategic partnership between ST Engineering and Adam
Aircraft. The VLJ market has tremendous potential, and will add a new
dimension to Singapore's aerospace industry. ST Engineering's partnership
with Adam Aircraft will no doubt help bring to Singapore, capabilities in
the entire value chain of VLJ activities; from design and development to
manufacturing and assembly and, of course, Maintenance, Repair and Overhaul
(MRO)." - Teo Ming Kian, Chairman, EDB
This LOI is non-binding and subject to due diligence studies expected to
be completed in 60 days.
Adam Aircraft is a designer and manufacturer of advanced aircraft
for civil and government markets. The company uses computer-aided design,
rapid prototyping, advanced manufacturing techniques, and carbon composite
materials to produce high-performance aircraft at attractive prices. The
A500 twin-engine piston aircraft has been Type Certified by the FAA, and the
A700 AdamJet is currently undergoing flight test and development. The
company's largest outside investor is Goldman Sachs. Adam Aircraft
headquarters are based on Centennial Airport (APA) in Englewood, Colorado
with additional facilities in Pueblo, Colorado, and Ogden, Utah. For
additional information on the company, please visit
www.adamaircraft.com.
ST Aerospace is the aerospace arm of ST Engineering. Operating a
global MRO network with facilities in Asia Pacific, Europe and the U.S., it
is the world's largest airframe MRO with a global customer base that
includes many of the world's leading airlines, airfreight operators and
military operators. ST Aerospace provides a full spectrum of maintenance and
engineering services through its three business segments: Aircraft
Maintenance & Modification (AMM), Component / Engine Repair & Overhaul
(CERO), and Engineering & Materials Services (EMS). Its services 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 5,000 engineers and technical specialists. Please
visit www.staero.aero.
ST Engineering is an integrated engineering group providing
solutions and services in the aerospace, electronics, land systems and
marine sectors. Headquartered in Singapore, the Group reported revenues of
US$2.05b in FY2005. Its market capitalization of over US$5b ranks it among
the largest companies listed on the Singapore Exchange. ST Engineering has
about 14,000 employees worldwide, and over 100 subsidiaries and associated
companies in 17 countries and 29 cities. Please visit
www.stengg.com.
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