Air France acquires interest in AERO MAINTENANCE GROUP

Air France Industries strengthens its position in the U.S. MRO market

In acquiring an interest in the U.S. firm AERO MAINTENANCE GROUP (AMG), an aircraft component repair and services provider, Air France Industries is strengthening its worldwide presence in the MRO business.

AMG HOLDINGS, with 130 employees, is based in Miami, Florida and has additional facilities in Long Beach, California and Copenhagen, Denmark.

The transaction was effected through the purchase of approximately 40% of AMG's equity with an option to increase Air France's stake in the future. This transaction will enable both companies to initiate close cooperation and develop component support activities in the Americas.

Alain Bassil, President of Air France Industries said: "The combination of Air France Industries and AMG expertise on a broad scale of products and services for both Airbus and Boeing families will provide US and American operators with innovative and customized component support solutions on a highly demanding market".

"We are pleased that Air France Industries has selected AMG as its North American Partner, " said Ben Quevedo, CEO of AMG. "This partnership will greatly benefit our customers through expanded repair capabilities, inventory availability and significant cost savings."

The Air France – KLM Group, through its MRO activities, currently supports a significant number of Airbus and Boeing customers in the Americas, including Northwest Airlines, Delta Airlines, Air Transat, Atlas Air, Tam Brazil, Aerolineas Argentinas. Air France Industries and AMG had already signed a cooperation agreement in July 2004 involving joint support for Airbus and regional jet components in North and Central America. The present agreement will allow Air France Industries and AMG to further develop local component repair and inventory support capabilities to better support their American customers.

AMG (headquarters, Miami, Florida USA):

AMG's mission is to offer a complete line of component repair and parts support services to commercial, regional and general aviation markets. AMG operating companies are strategically organized to provide customer driven solutions. AMG saves customers' time and reduces their capital expenditures and operating costs by offering a total service program through the following AMG companies :

AERO TECHNOLOGIES (Miami, Florida) is an FAA licensed repair station focused on the repair, overhaul and inventory support and sales of pneumatic, hydraulic, avionics and electro-mechanical components and accessories. Aero Technologies is developing solutions and offering innovative programs designed to support operators of commercial aircraft, including the B737, B747, B757, B767, B777, A320 family, and Regional Jets. Aero Technologies state-of-the-art capabilities, technical expertise and customer support are what customers, including United Airlines and Delta, rely on.

AIR-PRO, with facilities in Miami, Florida, Long Beach, California and Copenhagen, Denmark supports the commercial, military, regional, and general aviation markets with the flexible hose assemblies it manufactures and distributes. Air-Pro sells specialty hoses and tubes. It provides inventory management solutions and supplies hose assemblies following ISO 9000 policies and procedures, and maintains an extensive inventory. Air-Pro customers in North America include Federal Express, Continental Airlines and American Airlines.

INTER-SAFE (Miami, Florida) is an FAA Licensed repair station that specializes in interior refurbishment and safety product repair and overhaul for commercial airliners and regional jets. Inter-Safe is a leader in the overhaul of crew and passenger seats and handles entire interior refurbishment projects or particular aspects relative to interior maintenance. Inter-Safe provided Independence Airlines with interior products for their FLYI presentation and overhauls crew seats for Astar Air Cargo and American Eagle.

Air France Industries is a leading multi-product aircraft maintenance provider with a worldwide network, a workforce of 10,000, and more than 600 aircraft supported on long-term contracts on behalf of approximately 100 major airlines. Air France Industries is the brand name under which the Air France maintenance arm markets its services.

By uniting the capabilities of KLM Engineering & Maintenance and Air France Industries in May 2004, the Air France-KLM combination has given rise to a leading worldwide provider of multi-product maintenance service, with third-party customers forming a significant proportion of its workload.

For inquiries or more information, contact:

Aero Maintenance Group
External Communications
Peter Metzger
Tel.: +1.305 972 9312
Fax: +49 40 5070 8534
E-Mail: pmetzger@aerotechnologies.net
www.aeromaintenancegroup.com

Air France Industries
External Communications
Ulli Gendrot
Tel.: +33 1 49348721
Fax: +33 1 49348669
E-Mail: ulgendrot@airfrance.fr
http://airfranceindustries.airfrance.com