EADS checks option of a European space propulsion company

• EADS SPACE Transportation holds talks with Snecma
• Result of study still open

Bremen, 20 October 2004 - In view of strengthening the space transportation industry, EADS SPACE Transportation is checking the option of an European space liquid and electric propulsion company in the field of launch systems (Ariane 5) and orbital propulsion systems (satellites).

"We are holding first exploratory talks with the French aerospace group Snecma concerning a joint space propulsion company," said Josef Kind, President EADS SPACE Transportation, in Bremen on Wednesday. Works councils and employee representatives in France and Germany were informed accordingly, continued Mr. Kind.

With EADS SPACE Transportation taking on the role as Ariane 5 prime contractor, a first step has been taken towards remaining competitive in the future. As prime contractor, EADS is responsible for the complete Ariane system including all the stages of the launch vehicle. Restructuring of the important propulsion sector could further strengthen Europe's position in the overall market. Through its subsidiary Snecma Moteurs, Snecma is EADS SPACE Transportation's most important partner in the field of Ariane 5 propulsion systems.

"Together with Snecma, we are currently checking the feasibility of such a joint company. The space propulsion units of EADS SPACE Transportation in Ottobrunn and Lampoldshausen are under discussion as well as Snecma Moteurs’ activities in Vernon and Villaroche." Apart from the current primary talks, no other measures have yet been initiated. The result of these initial talks is still open. "We simply have to take all the options into account and to check them thoroughly," said Mr. Kind.

EADS SPACE Transportation is the European specialist for access to Space and manned space activities. It develops and produces Ariane launchers, the Columbus laboratory and the ATV cargo carrier for the International Space Station, atmospheric reentry vehicles, missiles systems for France's deterrent force, propulsion systems and space equipment.

EADS SPACE Transportation is a wholly owned subsidiary of EADS SPACE, which is dedicated to providing civil and defense space systems. In 2003, EADS SPACE had a turnover of €2.4 billion and 12,000 employees in France, Germany, the United Kingdom and Spain. EADS is a global leader in aerospace, defense and related services. In 2003, EADS generated revenues of €30.1 billion and employed a workforce of more than 100,000.

Press Contact:

Dr Mathias SPUDE – EADS-ST 49 421 539 5710