Third Quarter 2002 Interim Report: Fraport AG Records Noticeable Increase in Revenues in the First Nine Months of 2002 - Operating Results Increase Nine Percen

FRANKFURT/MAIN (Germany) (ots/APROTEXT) - Fraport AGFrankfurt Airport Services Wordwide today presented its interimreport for the first three-quarters of fiscal 2002. Revenues ofthe airport company clearly increased by 13.9 percent to EUR1,344.2 million. Earnings before interest, tax, depreciationand amortization (EBITDA) grew by 9.2 percent to EUR 401.8million.

In the third quarter, Fraport AG was able to continue thegratifying increase in revenues seen during the first half offiscal 2002. Fraport views this as a confirmation of itsforecast for positive results for the total year. The clearincrease in sales was mainly due to ICTS Europe Holdings B.V. -the European market leader for aviation-related security services- being fully consolidated for the first time this year. On anadjusted basis, i.e., without this consolidation, revenues were4.1 percent higher than in the same period last year. The majorfactor was the positive development at Frankfurt. Here resultswere boosted by higher revenues from retailing and rentalincome, the increase in airport charges at the beginning of theyear, and growing demand for security services.

In contrast, traffic figures still fell slightly short of theprevious year's level. However, traffic picked up more stronglyin the third quarter, despite the slow world economy. FromJanuary to September, Fraport recorded 53 million passengersGroup-wide, only 0.5 percent less than in the same period lastyear.

Frankfurt Airport - the group's most important location -recorded 37 million passengers, a three percent drop from thesame period last year. However, with 14 million passengers inthe third quarter, activity was nearly level with the thirdquarter last year. Having already picked up noticeably in thesecond quarter, cargo activity in the first nine months of fiscal2002 reached about 1.1 million metric tons, a slight increase of0.3 percent. With about 344,200 takeoffs and landings, aircraftmovements at Frankfurt Airport almost reached the level of thesame reporting period in 2001.

Fraport's EBITDA reached EUR 401.8 million, a 9.2 percentincrease on the previous year. In addition to higher revenues,this increase was attributed to only a moderate increase in costto revenue ratio. Cost of materials rose by a negligible 1.8percent to EUR 359.3 million and personnel expense rose 22percent to EUR 633.9 million due to newly consolidated entities.Fraport's EBITDA-margin shrank to 29.9 percent, slightly downfrom last year's 31.2 percent, because of the consolidation ofICTS Europe, which has a customary smaller EBITDA- margin.

Profit from ordinary operations of EUR 197.2 million exceededthe previous year by 23.3 percent. This increase was mainlyattributable to a rise in earnings and an improvement in netinterest expense due to a reduction in liabilities followingFraport's initial public offering (IPO). Depressed by an over-proportional increase in tax expenses, consolidated profits fell13 percent to EUR 83.3 million. Last year, the tax rate waspositively affected by special dividends. Earnings per share,according to IAS (International Accounting Standards), droppedfrom EUR 1.28 to EUR 0.92.

Fraport's total commitment for the Manila Airportinternational passenger terminal (IPT) project has increasedover the second quarter 2002 by $5.3 million in interest paymentsto $383.2 million. During the past few months, Fraport has heldtalks with the Philippine government to sound out optionsregarding the Manila project. In the meantime, the senatecommittee of the Philippine parliament seems to have largelycompleted its investigations regarding the legality of theconcession and supplemental agreement for the operation of theterminal. As a result of this investigation a Philippine courtcould declare this concession agreement partly or fully void.In close coordination with the Philippine government, Fraportcurrently tries to find out which impact such a court decisionwould have on Fraport's financial commitment. The Philippinegovernment confirmed that the legal situation resulting fromsuch a decision would improve chances for re-transferring theproject and getting appropriate compensation payments forFraport's investments to date. The government said it would bestriving for a solution that protects the interests of FraportAG.

As part of the "WM 2005 - Creating Value for Tomorrow"productivity improvement program, the company's management andworks council signed a works agreement, which represents asignificant step toward the successful implementation of theprogram. The agreement governs the specific consequences ofpersonnel-strategy initiatives for Fraport staff. The essence ofthe agreement is to secure existing jobs and to create new ones.

Fraport is currently preparing the application documents fortwo approval procedures. One procedure will deal with theapproval for building a maintenance facility - hangar, ramp andassociated access taxiways - required at Frankfurt Airport toaccommodate the new low-noise, low-emission A380 widebodyaircraft. The company plans to file this zoning request beforethe end of this year. To remain competitive in the future, aninternational air transport hub such as Frankfurt must be ableto accommodate aircraft of this size.

The second procedure will deal with Fraport's zoning requestfor the urgently needed expansion of Frankfurt Airport, inkeeping with market demand. The company postponed filing thisrequest to the year 2003 to prepare optimally for the procedure.As excellent preparation will speed up successful completion ofthe procedure; the scheduled year for opening the new runwayremains unchanged at 2006.

While remaining cautiously optimistic with its prognosis forair traffic development in the total year 2002, Fraport AGexpects a further recovery in air traffic during the fourthquarter. Nevertheless, the company expects a significantincrease in consolidated revenues, mainly because of the first-time full consolidation of ICTS Europe, an increase in airportcharges, and a passenger-related security surcharge. Despitethe absence of special effects, which had bolstered last year'sresults, Fraport expects the EBITDA for 2002 to reach at leastEUR 500 million, thanks to already initiated measures under the"WM 2005" program.

ots Originaltext: 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.: +49 69 690 -78547

Fax: +49 69 690 -60548 E-Mail:r.payne@fraport.de Internet: www.fraport.com

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