NEWS..... .....NEWS

15th February 2002
PRESS RELEASE

Eagle Aircraft Consolidates Manufacturing Operations

Wichita, Kan - Eagle Aircraft is consolidating all its manufacturing operations in Malaysia, home of parent company Composite Technologies Research Malaysia. The move is expected to result in numerous benefits, including improving production scheduling, spare parts control and expediting, enhanced research and development and a greater focus on customer and distributor support.

"Since the introduction of the Eagle 150B, it has set a standard for single-engine, light aircraft," said Manshor Ghafar, president, Eagle Aircraft. "Such a revolutionary plane demands an equally progressive approach to manufacturing. It's also fitting that an aircraft known for its low maintenance and operating costs should be produced in the smartest, most cost-effective means possible".

Previously the company had manufactured its cutting-edge, all-composite Eagle 150B aircraft in both Malaysia and Australia. Approximately 150 workers are employed in Malaysia, where the aircraft is manufactured and 44 in Australia, where the planes have been assembled. Operations and the production line at the Australian plant, just south of Perth, are being transferred to Eagle's Melaka plant in Malaysia. Plans call for the Melaka plant to handle all Eagle 150B manufacturing and assembly work by midsummer.

Eagle Aircraft will continue to sell its aircraft in the United States, Australia and New Zealand through a dealership network established over the last five years. The plane is primarily targeted for use in pilot training, leisure and sports flying and business. Ron Scherpenzeel, marketing manager, says streamlining manufacturing operations will benefit customers both directly and indirectly.

"This move allows management to direct a greater portion of its energy towards building our U.S. and European network, helping us build our customer base and provide those customers with the highest levels of service," Scherpenzeel said. "It also enables us to direct more resources to R&D, making a great product even better."

The decision to consolidate manufacturing under "one roof" was further influenced by the activities of other Malaysian-based subsidiaries owned by Eagle's parent company. These subsidiaries design and manufacture composite products for airline original equipment manufacturers (OEMs), including Airbus, British Aerospace Systems and the U.S.- designed Lancair Columbia 300 high-performance, light aircraft.

"Building the Eagle 150B alongside subsidiary companies that are continually researching and developing new-and-improved products for aviation and aerospace only strengthens the Eagle program," said Justin Ladner, president of HGL, Aero, the sole U.S. distributor for the Eagle 150B. "Our customers response to the news has been extremely positive. They realise it benefits both our product and our services. I expect to see everything from reduced delivery times to even more competitive prices."

Now type-certified for use in the United States, Australia, New Zealand, Malaysia and Thailand, work is currently underway to certify the Eagle 150B in Europe, South America and Africa. Once this certification is achieved, Eagle Aircraft will distribute fully built aircraft to an additional 30 countries around the world.

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