01/23/04
Lufthansa Technik Purchases Majority Ownership of AirLiance Materials

United and Air Canada to remain partners in joint venture;
new structure allows for continued rapid growth of the company

CHICAGO, IL. (January 23, 2004)… Lufthansa Technik has made an additional equity investment and taken a majority position in the ownership of industry-leading spare parts provider AirLiance Materials, according to an announcement made by AirLiance CEO and President David Sisson. Prior to the additional investment, Lufthansa Technik owned 41% of the company with the remaining percentage split between United Airlines (41%) and Air Canada (18%).
The additional equity investment, which was approved by all shareholders and Management, gives Lufthansa Technik just over 50% equity in the venture with the remaining interest split between United Airlines and Air Canada. According to August Henningsen, Chairman of Lufthansa Technik, “ We are pleased to increase our ownership stake in AirLiance. Over the last five years, the company has played a vital role in helping LHT reduce our total MRO costs by providing material management solutions at competitive pricing. In addition, as a stand-alone venture serving the air transport industry, AirLiance has consistently achieved its growth goals and is a profitable business that can contribute to cost reductions to those customers that it serves.”

In a related statement, David Sisson, AirLiance Materials President and CEO said “Airliance has achieved year after year revenue growth of 34% and the increased support from LHT will give us the opportunity to further increase our market share and expand our revenue stream. LHT is the largest independent MRO provider in the world and we are delighted that our relationship with them will be further enhanced.”

Airliance Materials was formed in 1998 as a joint venture between LHT, UAL and Air Canada and has grown rapidly to become one of the top 3 providers of surplus material to the world’s MROs. Roscoe Musselwhite, Executive Vice President of AirLiance Materials noted that, “ LHT has been a solid partner and valued customer for the last 5 years and we are working closely with them to further lower material costs and increase our business together. We fully expect that our business together with LHT will double in the near term and that AirLiance will strengthen its position as a global MRO parts solution provider”

About Lufthansa Technik
The global network of the Lufthansa Technik Group, with over 23,000 employees, more than 25 affiliates and subsidiaries and numerous maintenance stations worldwide, is a leading provider of services for the aviation industry. The Group offers a vast portfolio of technology, training and logistics services, as well as supplementary services for all aspects of aircraft operations. Today, over 400 customers place their trust in the reliability, cost efficiency and innovation strengths of Lufthansa Technik.

About AirLiance Materials
Created for airlines, by airlines, AirLiance Materials is the exclusive supplier of high-quality, traceable, surplus parts from three operators to the global air transport industry. With over 1000 customers, the company operates 24 hours a day, seven days a week. Headquartered in its 187,000 sq. ft. facility, AirLiance Materials is located at O'Hare International Airport in Chicago. The company offers its products and services through an international network of offices around the world and their e-commerce site www.airliance.com.


For more information, please contact Michael King at King Group, phone: 805-462-3000, e-mail: mking@kinggroup.com or Kimberly Miller at AirLiance Materials, phone: 847-233-5828, e-mail: kimberly.miller@airliance.com.

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