Fraport AG Expects World Air Traffic to Grow / Dividends Anticipated for FY 2003 - EBITDA Should Reach EUR 500 Million Again

Frankfurt, Germany 26. 6. 2003 (PROTEXT/ots) - Fraport AG(FSE: FRA) expects only a slight decline in passenger figuresfor the current business year, despite the impact of the Iraqwar, SARS, and the worldwide economic slowdown. Airfreight, incontrast, is expected to register clear growth for the year,explained Fraport executive board chairman Dr. Wilhelm Benderduring his presentation at the company's Annual General Meeting(AGM) at the Jahrhunderthalle in Frankfurt- Hoechst, Germany."Long-range forecasts for world air traffic indicate continuedstrong growth," said Bender at the AGM.

Irrespective of two years of rather sluggish growth, FRA'scapacities will be exhausted in the near future, said Bender.Fraport's Airport Expansion Program at FRA will not be shelved.This summer, Fraport AG will submit the documentation for thezoning procedure required for the construction of a new landingrunway northwest of the airport.

Regarding the previous business year, Fraport's chairmanemphasized that, despite the difficult market environment, thecompany's operating business was quite satisfactory and "theairport business is strategically well positioned". Before theexceptional effect (write-down) resulting from the Manilapassenger terminal project, the EBITDA (earnings before income,tax, depreciation and amortization) reached EUR 502.5 million,even slightly more than the forecast value of EUR 500 million.Because of the full-consolidation of ICTS Europe, a provider ofaviation security services, revenues climbed 14 percent to EUR1.8 billion. Excluding this consolidation effect, sales for theFraport Group still increased by four percent in 2002.

A substantial portion of Bender's speech was devoted todiscussing the historical development and current status of theManila project. At the AGM, he explained in detail why as abusiness precaution it was indispensable to write- downcompletely Fraport's investment in the Manila terminal project.As a result of this extraordinary expense no dividends could bepaid to shareholders for fiscal year 2002.

As the chairman clearly emphasized, Fraport AG will continuepreparing for the planned arbitration proceedings against thePhilippine government at the World Bank in Washington. "Thebasis for every foreign investment is shattered if the validityof official contracts and the reliability of the state cannot betrusted when a change of government occurs." Bender explainedthat the moral drawn from the Manila project was that Fraport,within the scope of its external business activities, would as arule not act as a financial investor again. "We will concentratemore intensively on securing service, management and consultingcontracts in the future."

In the current business year, Fraport will endeavor to reachan EBITDA of EUR 500 million again; from today's perspective,Fraport is optimistic about being able to pay dividends againfor fiscal year 2003. This is possible, if no new unforeseeablespecial effects negatively impact air transport and the globaleconomy.

Fraport's executive board chairman described the pricedevelopment of the Fraport share as unsatisfactory. The currentstock price does not accurately reflect "our excellent positionas an efficient and competitive player in the internationalairport business, our total assets and our potential for thefuture." With pride, Dr. Bender told shareholders that - even inthe economically stagnating environment of 2002 - the companywas able to avoid operations-related layoffs. In response toincreasing youth unemployment in Germany, Fraport AG will offer10 percent more training positions at Frankfurt Airport thisautumn.

ots Original Text Service: Fraport AG Internet:http://www.presseportal.de

For More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide Attn: Robert A. Payne - ManagerInternational Press 60547 Frankfurt am Main, Germany Tel.: +4969.690.78547 / Fax: +49.69.690.60548 E-mail:r.payne@fraport.de / Internet: www.fraport.com

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