Singapore Airport Terminal Services Limited (SATS)

23 May 2001

Singapore Airport Terminal Services Limited (SATS) today signed a sale and purchase agreement to acquire a 20% stake in Evergreen Air Cargo Services Corporation (EGAC) from its holding company, Singapore Airlines Limited (SIA). The acquisition comprises 16,000,000 shares of par value NTD10 each, for a total cash consideration of S$8.79 million, based on fair market valuation.

EGAC is a subsidiary of Eva Airways Corporation and the joint venture vehicle of a consortium that was formed in January 1999, comprising SIA and eight Taiwanese companies. The consortium successfully bid to build a 500,000-ton airfreight terminal at Chiang Kai Shek International Airport (CKS Airport) in Taipei under a 30-year build-operate-transfer franchise agreement. The other major shareholder of EGAC is Far Glory Air Cargo Terminal with a 20% interest.

In compliance with the bid guidelines at that time, interested foreign investors had to be airlines. That restriction has now lapsed. As cargo handling is a core activity of SATS, SIA and SATS have decided that SATS should acquire SIA's shares in EGAC.

Mr Karmjit Singh, Chief Executive SATS Airport Services, said that with this new addition, SATS will be participating in three joint venture companies in Taipei with the Evergreen group, the others being Evergreen Sky Catering Corporation and Evergreen Airline Services Corporation. "SATS is well positioned to benefit from the sustained growth of the market at CKS International Airport," he said.

The EGAC cargo terminal is currently under construction, with operations scheduled to start in 2002. The joint venture is part of the Taiwanese Government's plan to promote CKS Airport as an air cargo transhipment hub for East Asia. CKS Airport has been experiencing rapid growth in air cargo traffic and air cargo volume over the last 10 years, reaching 1.2 million tons in 2000.

For further information, please contact:

SIA
Public Affairs Department
Tel : (65) 541-5880 (office hours)
H/P : (65) 9753 2126 (after office hours)
Fax : (65) 545-6083

SATS
Ms Carolynn Leow
Tel : (65) 5418140
Fax : (65) 5432063
Email : carolynn_leow@singaporeair.com.sg

Visit www.singaporeair.com for details of exclusive SIA events in May.

EVERGREEN AIR CARGO SERVICES CORPORATION

FACT SHEET

1 Scope of services                    : air-cargo terminal related
                                         services at Chiang Kai Shek
                                         International Airport, Taipei

2 Handling Capacity                    :   500,000 tons per year

3 Total Build-up Area                  :    97,000 sq.m, including 2
                                                   basements for staging
                                                   of pallet dolleys and
                                                   car parking, and
                                                   offices at the 2nd,
                                                   4th and 5th storeys.

4 Warehouse area                       :    35,200 sq.m

5 Estimated Investment Cost (NT$'000)
    Construction                       : 1,976,879
    Warehouse equipment                :   767,206
    Ground handling equipment          :    44,154
    Cargo management system            :    38,671
    Furnitures and fixtures            :    55,718
    Working capital                    :   133,908
                                         ---------
                                         3,016,536
                                         =========

6 Franchise Period                     :        30 years

7 Land Lease Period                    :        20 years but extendable to
                                                   end of franchise period

8 Shareholders & Shareholding          :
    EVA Airways Corporation                     57.725%
    Singapore Airport Terminal
      Services Ltd                                  20%
    Far Glory Air Cargo Terminal                    20%
    Round-The-World Corporation                 0.9375%
    Signet Express Co Ltd                       0.9375%
    Morrison Express Corporation Ltd            0.1875%
    Marine-Land-Air Transportation Ltd          0.1875%
    Dimerco Express (Taiwan)
      Corporation                                0.025%

9 Expected Operational Start-up Date   :     early 2002

© Copyright 1996-2008 irasia.com Ltd. All rights reserved.

DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website. TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited. TERMS OF USE: Please read the Terms of Use governing the use of our website.