DaimlerChrysler and Lagardère have reduced their respective stakes in EADS by 7.5%

On 4th April 2006, DaimlerChrysler and Lagardère announced the entry into simultaneous transactions aimed at reducing by 7.5% each their respective shareholdings in EADS.

DaimlerChrysler entered into a forward sale agreement of approximately 61 million EADS shares with a group of investment banks. The DaimlerChrysler Group indicated that it lent these shares to the banks in anticipation of the settlement of the forward sale.

Lagardère issued mandatory exchangeable bonds subscribed by IXIS Corporate & Investment Bank. In turn, IXIS Corporate & Investment Bank sold a large majority of the underlying shares to a group of French institutional investors. The EADS shares deliverable at the maturity of the bonds will represent a maximum of 7.5% of the share capital of EADS, or approximately 61 million EADS shares. These transactions have not impacted the balance of control between the core shareholders in EADS’ corporate governance as set forth in the shareholder agreements described in Section 3.3.2.

EADS and BAE Systems enter into early stages of a discussion on the potential disposal of BAE Systems’ 20 percent share in Airbus

On 7th April 2006, EADS confirmed that is was entering into the very early stages of a discussion on the potential disposal of BAE Systems’ 20 percent stake in Airbus.

EADS believes that increasing its stake in Airbus holds the potential of simplifying Airbus governance. EADS is fully prepared to move ahead constructively.

The initiation of discussions with BAE Systems does not represent an exercise of the put option held by BAE Systems in relation to its 20% stake in Airbus. EADS intends to work diligently together with BAE Systems towards establishing a value for this 20% stake that is fair to both parties. The schedule of the discussions cannot be anticipated and there can be no certainty as to their outcome.

Spanish Ministry of Interior Selects the EC135 for its Police Forces

On 17th March 2006, the Spanish Government announced the launch of an acquisition programme for the modernisation of its security forces. Under this programme, the Spanish Ministry of Interior intends to acquire 51 EC135 helicopters from Eurocopter in order to modernize the Guardia Civil’s and the Cuerpo Nacional de Policía’s existing helicopter fleets within the next eight years. Eurocopter España will carry out the EC135’s final assembly activities, develop and install the highly innovative mission-specific equipment, and execute the concluding ground and flight tests. To this end, an assembly line for the EC135 will be established in Albacete at the local Eurocopter España site.

Successful Integration of LFK into MBDA Completed

On 28th February 2006, the integration of LFK GmbH into the European missile systems group MBDA received clearance from the European Commission and the German Ministry of Economics and Technology. The legal formalities in connection with this operation were also successfully completed. MBDA’s new German component will retain LFK GmbH’s legal name and MBDA’s brand. It will operate under principles of operation and processes mirroring those of MBDA while servicing Germany, Europe’s third largest missile market.

A300 / A310 Final Assembly to be Phased Out by July 2007

On 7th March 2006 Airbus announced that the A300/A310’s final assembly will progressively be phased out. This announcement follows more than 35 years of successful marketing and production of Airbus’ original aircraft programme. The A300/A310 programme has achieved a total of 821 orders, and 802 aircraft had been delivered by the end of January 2006. The order backlog comprises A300 freighter aircraft to be delivered to FedEx, UPS and Galaxy Airlines. The last A300−600 aircraft on order will be delivered in July 2007. Airbus plans to offer new freighter versions of current aircraft once the A300/A310 programme has ended.

During the last two years, approximately 150 Airbus employees produced roughly one aircraft per month on the A300/A310’s final assembly line. All employees involved in the A300/A310 production will be offered new positions in other current or future programmes.

U.S. Government Orders Helicopters to Support Homeland Security Missions

On 26th February 2006, EADS North America announced that the U.S. Department of Homeland Security Customs and Border Protection had ordered 10 Light Sign Cutter EC120 helicopters from American Eurocopter, an EADS North America BU. This represents the first such order pursuant to a contract entered into with the Department of Homeland Security, and it could involve as many as 55 helicopters, with a potential total value of up to U.S.$75 million. American Eurocopter will produce the Department of Homeland Security Customs and Border Protection’s EC120s at American Eurocopter’s new Columbus, Mississippi facility.

The Department of Homeland Security Customs and Border Protection is to receive its first EC120 in June for deployment on America’s southwest border with Mexico. In order to meet this challenging schedule, three EC120s already are in production. The remaining aircraft will be delivered at the rate of one helicopter every 30 days.

Indian Airlines Signs Contract For 43 Airbus A320 Family Aircraft

On 20th February, 2006, Indian Airlines Ltd, India’s leading airline, signed a contract for 43 Airbus A320 family aircraft. Indian Airlines Ltd. has ordered 43 Airbus A320 Family aircraft, comprising twenty A319s, four A320s and nineteen A321s. The contract represents the fist commitment from an Indian carrier for the Airbus A321 aircraft, marking a significant breakthrough for EADS.