A Memorandum of Understanding for the extension of an important supplier contract was signed today in Ankara between Turkish Aerospace Industries, Inc. (TAI) and Airbus in the presence of Mr. Muharrem Dortkasli, TAI General Manager, and Mr. Simon Ward, Head of Industrial Co-operation Europe Airbus.

Turkish Aerospace Industries, Inc. (TAI) is a long standing supplier of Airbus and other EADS business units. Today TAI manufactures the Single Aisle fuselage section 18 skins at a rate of nine per month and due to the outstanding success of this aircraft Airbus is looking to further increase the production rate within TAI up to 15 sets per month. This represents a contract extension and value of business approximately $30 million over the next three years.

Also Airbus is looking to build on the cooperation from A400M project and utilize the TAI design Capability to support it in the A350 XWB development with and design and build contract that will be defined over the next twelve months. This will ensure continuity of TAI excellent Aircraft design capability for the next five years, employing up to 200 design engineers on the latest state of the art aircraft development.

"This agreement is a further proof of the capacity of TAI to not only manufacture on specification, on-time and at a competitive cost but also to contribute in commercial aerospace design. Airbus is offering us the opportunity to grow our business and development while creating new employment in Turkey and consolidate our position in the international market and we will use this opportunity to develop further", said Muharrem Dortkasli of TAI.

"Since 2006, the turnover of Airbus work in Turkey has doubled from $19M to $40 million in 2008. This agreement will further increase this figure and provides further opportunities for the Turkish Aerospace industry to continue to consolidate and grow it's role, not only in manufacturing, but also in commercial aerospace design It clearly reflects the growing capability in commercial aerospace manufacturing in Turkey and the strong support from the Turkish government given to the growth of this important export industry", stated Simon Ward, Head of Operations for International Cooperation at Airbus.

The successful working relationship between TAI and Airbus started originally in 1998 with a first contract for 200 deliveries of Section 18 side panels for the A320 family of Airbus. This then expanded over the years up to 650 panels by 2007. In 2004, a contract for A380 component production was concluded with production starting in 2005 and running up to 2009.

TAI is also shareholder of Airbus Military and an A400M industrial partner responsible for approximately five per cent of the airframe design and production. TAI is responsible for the Forward Centre Fuselage, the Paratrooper Doors, the Rear Fuselage Upper Shell and the Tail Cone plus Ailerons and Spoilers. In addition the Turkish industry (TAI, TEI, Selex, Aselsan) also supplies equipment and systems parts for the A400M. The Turkish Air Force has ordered ten A400M, which will be delivered between 2010 and 2014