Fraport Writes Down Manila Risk

Frankfurt/Main, Germany 25.03.2003 (PROTEXT/ots) -Preliminary Figures for Fiscal Year 2002: EBITDA Exceeds 500Million Before Exceptional Write-down - Revenues Increase 14Percent - Current Business Year Off to Good Start

Fraport AG's executive board has decided -within the contextof completing the 2002 financial statement - to make a 293million complete write-down on its financial investment in theInternational Passenger Terminal 3 (IPT 3) project at NinoyAquino International Airport (NAIA) in Manila, the Philippines.

Based on preliminary unaudited figures for fiscal year 2002,the Fraport Group recorded nearly a 14-percent increase inoperating revenues to Euro 1.8 billion and earnings beforeinterest, tax, depreciation and amortization (EBITDA) of 504million - excluding the exceptional write-down for the Manilaproject. Thus, Fraport achieved its forecast operating result ofmore than half a billion euros.

After this exceptional effect, the Fraport Group had anEBITDA of Euro 242 million and an annual net loss of Euro 120million. The write-down already takes into account about a $140million outflow of funds - expected by the end of March 2003 -from bank guarantees for the Manila project.

In connection with this non-recurring expense, Fraport AG'sretained earnings are zero after a Euro 130 million releasefrom capital reserves for 2002. As a result, no dividendpayments will be made for fiscal year 2002.

Fraport's executive board chairman, Dr. Wilhelm Bender,emphasized that "overall, 2002 was a very successful year forus". "We increased our earning power again and strengthened thebasis for healthy development of the Group," Bender said. "Anddespite the difficult political and economic conditionsworldwide, we are optimistic about 2003." However, Benderindicated that the Iraq war and its feared negative impact onaviation presents a significant risk for the current businessyear.

Regarding the Manila project, Fraport's chairman stressedthat the executive board has run out of patience: "Our massivenegotiating efforts, including intensive discussions that I hadin Manila last week, as well as repeated interventions by theGerman government have not produced sufficient tangible resultsto date." This is the case, despite the Philippine government'spromise of direct compensation. Fraport's management remainsoptimistic and will continue to fight further for a solution tothe problem through discussions with the existing partner,potential investors and the Philippine government. "We willcontinue our major commitment to defend the company's interestsin the Philippines. The write-down does not mean that Fraportwill give up its claims, in whole or in part," said Bender.After all, "according to an independent expert opinion, theterminal's value clearly exceeds the construction costs," saidBender. "We will also take legal action to assert our claimsconsistently."

Therefore, Fraport's executive board will push ahead with itslegal offensive. It is preparing an application for arbitrationproceedings at the World Bank against the Philippine government.

At Fraport's annual financial press conference on April 29,the company will present its audited figures for fiscal year2002, as well as a profit outlook for the current year.

For More Information, Please Contact: Fraport AG FrankfurtAirport Services Worldwide Attn: Robert A. Payne - ManagerInternational Press 60547 Frankfurt am Main, Germany Tel.:+49.69.690.78547 Fax: +49.69.690.60548 E-mail:r.payne@fraport.de / Internet: www.fraport.com

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