First Half 2002: Fraport AG Records Significant Increase in Revenues and Profits Progress in Manila - Frankfurt Airport's Expansion Plan on Track

Frankfurt, Germany 22. 8. 2002 (PROTEXT/ots) - Fraport AGFrankfurt Airport Services Worldwide today presented its interimresults for the first half of 2002. The airport manager achievedsignificant growth in consolidated revenues, which rose 13percent to euros 855.2 million. Consolidated profit climbed evenhigher by 37 percent to 53.6 million.

This strong increase in revenues and profits for the firsthalf of 2002 is viewed by Fraport AG as confirmation of itsforecast for positive results for the total year 2002. Thisgrowth in revenues can be largely attributed to ICTS EuropeHolding B.V. (ICTS Europe) - the European market leader foraviation- related security services - which has been fullyconsolidated for the first time since January 2002. Excludingthis consolidation, Fraport's revenues exceeded the previousyear by 3.3 percent. Particularly satisfying was the developmentof revenues from retailing, which grew by 12.1 percent to abouteuros 33 million.

Air traffic demand recovered noticeably from the significantdecline that occurred after the 9/11 terrorist attacks. Group-wide, Fraport recorded 31 million passengers in the first halfof 2002, only a 2.6 percent decline versus the same period lastyear. At Frankfurt Airport (FRA), the Group's most importantlocation, passenger traffic declined by 4.3 percent to 22.9million. A turnaround has certainly become discernible in thecargo sector, which is sensitive to economic fluctuations. Withabout 724 thousand metric tons handled at FRA in the first halfof 2002, airfreight traffic was still 2.8 percent below theabove-average level of the same period last year. In the secondquarter of 2002 airfreight tonnage increased for the first timeagain, growing by 1.9 percent.

Fraport's earnings before interest, tax, depreciation andamortization (EBITDA) reached euros 234 million, a 14.3 percentincrease compared to the previous year. In addition to higherrevenues, this increase was attributed to only a moderateincrease in expenditures. Non-staff costs dropped almost threepercent below the same period last year and personnel expensesrose 23.6 percent due to newly consolidated entities.

Revenue growth, a reduction in non-staff costs, and animprovement in net interest expense, due to the repayment ofdebt following our initial public offering (IPO), led to asignificant 37 percent jump in consolidated profit to euros 53.6million. The profit per share, according to IAS (InternationalAccounting Standards), was euros 0.59 compared to euros 0.58 forthe first half of 2001.

Fraport AG's executive board is optimistic about negotiationswith the Philippine government, which in a letter to Fraport hassignaled its willingness to discuss in detail the option of re-transferring the Manila terminal project to the Philippinestate. Fraport AG will continue to abstain from providingfurther funding to the PIATCO project company, until anacceptable solution has been achieved with both the governmentand Fraport's Philippine partners.

The Airport Expansion Program at Frankfurt Airport is one ofFraport AG's most important projects for the future. With thecompletion of the regional planning procedure(Raumordnungsverfahren or ROV) on airport expansion in June, thenext step can proceed. The ROV decision from the Darmstadtadministrative district, the responsible government authority,has confirmed Fraport's position that the Runway Northwestoption provides the necessary capacity increase at FRA andproduces the lowest possible impact and disturbance to theregion. Fraport AG is now preparing for the so-called zoningprocedure or project plan approval procedure(Planfeststellungsverfahren). The process continues to beoriented on the existing time and cost plan -- in particular,the company is adhering to its completion date of 2006 for a newfourth runway.

Independent of zoning for the Airport Expansion Plan, FraportAG will start another zoning procedure. This procedure willcreate the basis for initiatives to adapt and optimize theairport to allow the operation and maintenance of the new AirbusA380 wide-body jets (super jumbos) at Frankfurt Airport.

Remaining cautious with its prognosis for air trafficdevelopment in the total year 2002, Fraport AG expects a declinein passenger traffic in the low single-digit percent rangeversus 2001. Nevertheless, the company expects a significantincrease in consolidated revenues, mainly because of the first-time full consolidation of ICTS Europe, an increase in airportcharges, and a passenger-related security surcharge. Fraport AGwill achieve an EBITDA in 2002 of at least euros 500 million."Fraport AG continues to be on the right course," said thecompany's executive board chairman, Dr. Wilhelm Bender. "We willalso remain successful beyond this difficult year of 2002." otsOriginal Text Service: Fraport AG Internet:

http://www.presseportal.de For More Information, PleaseContact: Fraport AG Frankfurt Airport Services Worldwide Attn:Robert A. Payne - Manager International Press 60547 Frankfurt amMain, Germany Tel.: +49 69 690 -78547 Fax: +49 69 690 -60548E-Mail: r.payne@fraport.de Internet: www.fraport.com

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