Fraport Fiscal Year 2003: Financial Results Exceed Forecasts - EUR115 Million Surplus - EUR0.44 Per Share Dividend Payment Recommended

FRANKFURT (Germany) 30th March (PROTEXT/ots) - In fiscal2003, Fraport AG Frankfurt Airport Services Worldwide (FSE: FRA)achieved considerably higher revenues and earnings. The airportmanagement company recorded an EBITDA (earnings before interest,tax, depreciation and amortization) of EUR503.4 million. Thus,despite the difficult market environment, the company slightlysurpassed the previous year's figure after adjusting for theManila write-down. Consolidated net income climbed by eightpercent to EUR115.2 million. Fraport AG's executive board andsupervisory board recommend a dividend payment of EUR0.44 pershare.

Despite the impact of the Iraq war, the SARS (severe acuterespiratory syndrome) disease, and the weak global economy,sales of the Fraport Group rose by 1.7 percent to EUR1,834.3million. A major factor contributing to this growth included, inparticular, additional profits from security services. At thebeginning of the reporting year, an increase in airport chargesby an average of two percent at the company's Frankfurt homebase also had a boosting effect.

The total number of passengers at the Fraport Group'sairports rose by 1.9 percent to 70.6 million in 2003. At theGroup's Frankfurt (FRA) and Antalya (AYT) airports, a noticeablerecovery in demand in the second half of 2003 nearly offset thedrop in passengers during the first half of the year, when bothairports had been extremely affected by the Iraq conflict andSARS. For the total year, passenger volume at Frankfurt fellonly 0.2 percent short of the previous year's level.Excellently positioned for the low-cost aviation market, theGroup's Frankfurt-Hahn Airport (HHN) served 2.4 millionpassengers and again recorded above-average growth of 67.3percent.

With an EBITDA of EUR503.4 million, Fraport exceeded theprevious year's figure of EUR502.5 million, which was adjustedfor the complete write-down of the company's project in thePhilippines. In addition to the steady increase in revenues,this growth was attributable to the moderate rise in operatingexpenditures. As a result of strict cost management - which alsoallowed for a strong reduction in costs for consultancy services- non-staff expenses decreased by 4.4. percent to EUR503.5million. In contrast, personnel expenditures rose 8.6 percentto EUR933.9 million, mainly because of an increase in personnelfor security.

Furthermore, the EBITDA reflects higher investment incomethan in the previous year. Especially the EUR17.6 million individends from Antalya made a positive showing. With 27.4percent, the EBITDA margin remained at about the same level asin the previous year.Fraport posted a consolidated net income of EUR115.2 million infiscal 2003. This represents an 8.0 percent increase comparedto EUR106.7 million in fiscal 2002. Earnings per share, as setout in the IFRS (International Financial Reporting Standards),amounted to EUR1.28.

At Fraport's AGM (annual general meeting) on June 2, 2004,both the executive board and supervisory board will recommend todeclare a dividend of EUR0.44 per share - a 10-percent increasecompared to 2001. In terms of the EUR22.80 closing price of theFraport share at year-end 2003, this represents a dividend yieldof 1.9 percent.

Regarding FRA's Airport Expansion Program (AEP) - the mostimportant investment project for Fraport AG - executive boardchairman Dr. Bender said: "We are working hard to maintain theambitious schedule for building and inaugurating the planned newlanding runway northwest of the airport, despite the threat ofdelays in the approval process. However, it requires acooperative effort between politics, business and society toachieve this timeline." Despite the most complicated approvalprocesses in the world, Frankfurt Airport must be expandedwithin a reasonable timeframe to secure its internationalcompetitiveness. Capacity requirements will determine therealization of Terminal 3, which will be built in various phaseswhen the airport land currently used by the U.S. air base isreturned to Fraport.

Fraport expects air traffic volume to increase considerablyin fiscal 2004. Consequently, revenues and the EBITDA will alsoimprove over the previous year. "We expect reboundingintercontinental traffic to give essential impetus for growth.With our Frankfurt home base - the leading European airtransportation hub - we are excellently positioned forintercontinental traffic," Bender said. In terms ofintercontinental traffic, Frankfurt Airport accounts for some 77percent of the German market. At Frankfurt alone Fraport'schairman expects passenger figures to rise by between 3.5 and4.5 percent to over 50 million passengers - "thus returning to along-term growth path."

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

For More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide Robert A. Payne - ManagerInternational Press/PR 60547 Frankfurt am Main, Germany Tel.: +4969.690.78547; Fax: +49.69.690.60548; E-mail:r.payne@fraport.de; Internet: www.fraport.de (click on "PressLounge")

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