New Development in Manila Terminal Project: Fraport AG Renews Demands for Compensation from Philippine Government

Frankfurt (Germany) 21. 12. 2004 (PROTEXT/ots) - In a pressconference today, the Philippine government said it has appliedfor a procedure with the Philippine courts for the physicalexpropriation of the new International Passenger Terminal 3 (IPT3) at Manilas international airport. According to reports, thePhilippine government has already taken over the terminal. Theterminal building is owned by the PIATCO project company, inwhich Fraport AG (FSE:FRA) holds a 30 percent share. Theterminal has still not been inaugurated. Fraports Manilainvestment was completely written down for the 2002 fiscalyear.

Fraport regards the Philippine governments actions as afurther blatant breach of law. On January 21, 2004, thePhilippine Supreme Court declared that expropriation cannothappen without fair compensation being paid to PIATCO.Therefore, Fraport expects prompt compensation. Furthermore,as a German corporation Fraport has a claim for faircompensation under the German Philippine Investment GuaranteeTreaty, especially in the case of expropriation. SinceSeptember 2003, Fraports respective legal action against thePhilippine government has been pending at the World Bank inWashington.

Fraport expects that the initiated expropriation procedurestrengthens Fraports claim for fair compensation underinternational law. Because it is based on international law,the arbitration procedure underway in Washington remainsunaffected by a Philippine court decision.

ENDS

For More Information, Please Contact:

Fraport AG Frankfurt Airport Services Worldwide

Robert A. Payne, B.A.A. Manager International Press

Press Office (Dept. UKM-PS), Corporate Communications (UKM)

60547 Frankfurt am Main, Federal Republic of 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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