Substantial Earnings Growth at Fraport

FRANKFURT (Germany) 9th August 2005 (PROTEXT) - Half YearRevenues Increase by 6.3 Percent EBITDA Up by 9.5 Percent TheGroup Result Climbs by Almost One-Fourth Outlook for 2005Confirmed Bender Appeals to Verdi Union.

Based on successful cost management and positive developmentof revenues during the first six months of 2005, the FraportGroup once again increased earnings substantially in comparisonto the same period last year. Revenues at 1,002.3 millionincreased by 6.3 percent and the Group Result by even 22.7percent. The outlook for the entire year is confirmed despitesignificant negative effects in the second half of 2005. Furtherchallenges will be faced in 2006. Consequently, Dr. WilhelmBender, Chairman of the Executive Board, once again called forcomplete implementation of the companys Were Making Fraport Fitproject.

The substantial increase in revenues is primarily attributedto higher airport traffic charges and more proceeds fromsecurity services. The operating costs (non-staff costs andpersonnel expenses) climbed by 5.0 percent and were below theincrease of revenues. Personnel expenses at 512.4 million were5.2 percent higher than in the same period of the previous year.ICTS Europe accounted for the largest proportion of this growthwith an increase in the number of employees by 14 percent to atotal of 10,343. The Fraport Group had an average of 25,146employees in the first half of 2005, 6.8 percent more than inthe same period of the previous year.

The non-staff costs were up 4.6 percent at 252.5 million.They include the cost of materials, which rose by 9.5 percent to152.9 million. This cost increase was mainly caused by thevolume growth in air traffic and additional security servicesthat the Fraport Group provides. The maintenance expenses, whichwere incurred due to extensive modernization and partialexpansion of the terminal and retail areas at Frankfurt Airport,were also higher than in the previous year. The other operatingexpenses were 2.3 percent lower than in the previous year at99.6 million.

Thanks to the improvement in the efficiency, the positivedevelopment of earnings continued as well: EBITDA increased by9.5 percent over the same period the previous year to 259.7million. The Group Profit of 73.1 million was 22.7 percent higherthan in the same period the previous year. The basic earningsper share increased from 0.65 to 0.80.

The Aviation segment of the Group generated revenues of 334.7million in the first half of 2005. This was an increase of 13.7percent over the same period the previous year. The segmentEBITDA of 79,4 million were 23.1 percent higher than in theprevious year.

The Retail & Properties segment revenues decreased by 0.9percent over the same period the previous year to 179.9 million.The decline was due to lower revenue-based airport access fees.Revenues from parking facility management and the retail businessincreased. All in all, the retail revenues per passengerincreased from 2.21 in the previous year to 2.25. The segmentEBITDA of 144.2 million remained unchanged.

The Ground Handling segment generated revenues of 302.8million which is an increase of 2.9 percent. The EBITDA of thissegment at 26.5 million was double the previous years figure.

The External Activities segment essentially covers all theinvestments outside of Frankfurt. Segment revenues increased by6.9 percent in the first half of 2005 to 184.9 million. ICTSEurope, which specializes in security services, made the largestcontribution to this growth. The opening of a competingterminal at the Antalya location in April led, on the other hand,to a reduction in segment revenues of about 7 million comparedwith the same period the previous year. It was only possible torespond to the drop in the passenger figures at the terminal weoperate in Antalya to a limited extent by cutting costs. For thisreason in particular, segment operating costs increased by adisproportionate extent in comparison with revenues. EBITDAdeclined by 37.3 percent to 9.6 million.

Based on the extremely successful business development duringthe first six months of 2005, Fraport is maintaining the outlookfor the full year. The passenger number in Frankfurt shouldclimb by about three percent and Group revenues by more thanthree percent. On the basis of continuation of the policy ofstrict cost management, we aim to achieve an increase in EBITDAthat is slightly larger than the revenue growth. The Group profitfor the year should increase significantly compared to lastyears figure.

Higher expenditures for modernization and adapting theterminal to handle the A380 aircraft have already been takeninto account. The same applies for the decline of militarytraffic due to the closing of the US Air Base in Frankfurt atthe end of the year, lower revenue-based airport access fees aswell as lower earnings due to the competing terminal in Antalya.

As known, further challenges are expected in 2006. Theseinclude implementation of additional security requirements ofthe European Union, probable price reductions in the groundhandling contract with Lufthansa, and substantially higherinvestments for modernization and expansion of the existingterminal facilities in Frankfurt.

In order to cushion these burdens on the earnings, Dr. Benderonce again demanded the implementation of all already identifiedcost-cutting measures within Fraports Were Making Fraport Fitproject. Dr. Bender appealed to the Verdi Union to support thecatalogue of measures that was established in accordance withFraports employees. Dr. Bender: Our employees are aware of thefact that we must take advantage of all savings potentials, whichhave been discussed for months, in order to ensure oursustainability. The Verdi Union, too, must realize this in thecurrent negotiations and be supportive. Dr. Bender referred tothe offer of the company that in return, there will not be anyoperationally determined redundancies and no cuts in theindividual income of employees.

For More Information, Please Contact:

Frapot AG, Press Office (Dept. UKM-PS), CorporateCommunications (UKM), 60547 Frankfurt am Main, Germany; Tel.: +4969.690.70555; Fax: +49.69.690.55071

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