Aerostar starts 2006 with a six-fold higher net income

Aerostar Bacau, a company that makes and repairs aircraft, posted 0.55 million euros (nearly 2 million RON) net profit in the first quarter of this year, about

6 times higher than the profit in the same time last year. The profit increase was made possible by the increase in the company”s turnover by 25% compared with the first three months of 2005, to 6.76 million euros (24.1 million RON). Aerostar sales were about 23% higher than budgeted for the first quarter, 5.5 million euros (19.6 million RON). A significant contribution to the growth in turnover came from exports, which amounted to 3.65 million euros (13 million RON), almost 54% of the total sales. Exports accounted for only 23.8% of the turnover in the first quarter of 2005. The main foreign client of Aerostar is the Indian Ministry of Defence. Aerostar this year got the

evaluation certification whereby it was authorised as a supplier for Messier-Dowty, world”s leading manufacturer of landing gears for aircraft. According to the quarterly report sent to the CNVM (National Securities Commission), Aerostar has signed contracts worth approximately 26 million euros (93.5 million RON)since the beginning of the year, with the sales volume projected in the 2006 strategy covered 65.8% by contracts. Aerostar has a three-year framework contract in place with the Air Force Staff to provide maintenance services for the aircraft of the National Defence Ministry, worth 8 million euros (28.7 million RON) this year.