EGYPTAIR MAINTENANCE & ENGINEERING

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CHAIRMAN MESSAGE

I am honored to be nominated as EGYPTAIR M&E’s Chairman & CEO following the distinguished leadership of, Eng. Abdelaziz Fadel, who successfully manage EGYPTAIR M&E through the initial transition phase from being a maintenance service sector within EGYPTAIR Company

into a complete business entity which has a remarkable footprint in MRO market in the region.

The Strategic intention toward more involvement in 3rd party business enables EGYPTAIR M&E to avoid hard effect of very low operation for the main clients within EGYPT. This had been achieved by managing to increase the 3rd party revenue by 25% when compared to 09/10 & even exceeding the target for 10/11.The financial results show that EGYPTAIR M&E sustains its level of turn-over relative to 09/10, 1.2 billion EGP and still in profit; of course it is below what was targeted in the budget. This slowdown is temporarily as all forecasts indicate that as soon as the political situation stabilized the growth will compensate this drawback.EGYPTAIR M&E successfully renewed all international approvals & certifications to maintain its potential core capability up to date. Given that the operation allover company locations have not been interrupted at any time, especially in the early stages of Egyptian revolution.We all believe that the future is very promising, not only for EGYPTAIR M&E, but for the Egyptian economy as well. EGYPTAIR M&E has a clear vision for sustainable growth with power of its

human capital.

Eng. Saeid Elmakkawy

Chairman & CEO

EGYPTAIR MAINTENANCE & ENGINEERING

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Board of Directors

EGYPTAIR MAINTENANCE & ENGINNEERING

Eng. Saeed Mostafa El Mekawy Chairman & CEOEGYPTAIR MAINTENANCE & ENGINEERING

Mr. Munier Abd El Wahab El Zahid Chairman & CEO, Banque Du Caire

Capt. Hisham Mostafa El Nahhas Deputy Chairman EGYPTAIR AIRLINES

Capt. Sherif Saad El Din Galal Former Chairman EGYPTAIR AIRLINES

Mr. Mohamed Mostafa Ahmed VP FinancialEGYPTAIR HOLDING

Eng. Khaled Mohamed Omar GM Advertising & Public Relations EGYPTAIR MAINTENANCE & ENGINEERING

Eng. Mohamed Tarek Mahmoud Gholam Senior Mechanical Engineers

Mr. Taha Mohamed El-Heresh EGYPTAIR MAINTENANCE & ENGINEERING

Mr. Saeed Ahmed Hamouda EGYPTAIR MAINTENANCE & ENGINEERING

Mr. Hamed Maher El Shewehey Syndicate Representative

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Chairman

Aircra+MaintenanceSeniorDirector

LineMaintenanceDirector

BaseMaintenanceDirector

Produc2onSupportDirector

Overhaul

WorkshopsSeniorDirector

MechanicalComponentOverhaulDirector

IERAOverhaulDirector

EngineOverhaulDirector

Con:nuousAirworthinessSeniorDirector

TechnicalServicesDirector

Maintenance&Contrac2ngDirector

MaterialDirectorTools,Calibra2on&SupportEquipment

Director

QualityAssuranceDirector

Informa:onServicesDirector

FinancialAffairsDirectorHumanResources

Director

LegalAffairs

DirectorPublicRela:onDirector

GeneralPlanningDirectorMarke:ng&Customer

SupportDirector

ORGANIZATION CHART

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COMPANY PROFILE

EGYPTAIR MAINTENANCE & ENGINEERING (M&E), one of EGYPTAIR HOLDING subsidiaries. It is the only full-maintenance, repair and overhaul (MRO) service provider in Egypt. EGYPTAIR M&E achieved an aggressive breakthrough in order to be a reputable independent MRO using state-of-the-art in providing the maintenance services for different types of aircraft, aircraft’s engines & components. EGYPTAIR M&E continues its role to support EGYPTAIR’s fleet. EGYPTAIR M&E holds the Egyptian Civil Aviation Approval, EASA Part145 and FAR Part145 approvals. EGYPTAIR M&E has an authorized capital of LE 500 million and a paid-in capital of LE 365 million.

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Company Vision:

“EGYPTAIR MAINTENANCE & ENGINEERING will be the leading MRO at Middle East & Africa“

Our Mission:

“EGYPTAIR M&E will provide MRO solutions with international standards to customers at Middle East, Europe & Africa through powerful and stable relationship with the Supplier/OEM, using its potential competencies’ to add values to Egyptian economy, EGYPTAIR Group & EGYPTAIR M&E’s professionals”

Strategic Goals (2011/2016): Reposition EGYPTAIR M&E as a leading MRO at Middle East & Africa Sustain strong growth & profitability momentum Shifting organization culture to be international business oriented

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Services Portfolio:Continuous Airworthiness Management

Extensive range of creative solutions taking into considerations the airline’s operations, technical, financial and regulatory aspects including but not limited to:-

Aircraft acquisition negotiations including technical definitions, options selection , warranty and guarantee , safe life policy definition…etc Aircraft lease negotiation supportFleet managementAircraft registrationAircraft Airworthiness ManagementAircraft check definition and statusAircraft deliveries and redeliveries.

Line and Base MaintenanceProvisions of all line and base maintenance on the following Aircraft Types:Airbus models: A320Family, A330-200/-300, A340-200/-300,A300-600 and A300B4Boeing models:B737-Classic, B737NG, B777series& B767, B757 (for Line Maintenance Only)Also the Embraer 170, 175 & 190

Engine Overhaul

V2500 A1/A5 and CFM56-5C: quick engine change (QEC) strip and build, modular replacement and engine core overhaul.CFM56-3C, PW 4090/4158, JT9 and Trent 700: quick engine change (QEC) strip and build & modular replacement under ECAA approval.

Component Repair and OverhaulServices on major component groups, such as mechanical components (hydraulics, brakes, wheels) and avionic components (ATEC and Radio instruments and electrical systems).

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Calibration ActivitiesElectrical measurements: DC and AC voltage and current, resistance and pressure measurements, gas and hydraulic gauges, frequency measurement and torque measurement.

NDTProvide NDT systems to measure eddy current, ultrasonic, X-ray and gamma ray, penetrant inspection, and magnetic partial inspection.

Certifications & Accreditations EGYPTAIR M&E operates in the aviation maintenance, and falls under the jurisdiction of the Egyptian Civil Aviation Authority (ECAA). EGYPTAIR M&E has all necessary permits to operate, and has an up-to-date record of inspections. These permits include; ECAA Part 145 (approval Certificate no. EGYPTAIR/AS/01/98)EASA Part 145 (approval certificate no 0290) FAR part 145 (approval Certificate no. 3EMY437B)Calibration Laboratory (ISO 17025)These agencies regulate our business in documenting and accounting for safety of all maintenance tasks.Authorities in many countries approve EGYPTAIR M&E as service provider such as:

UAE General Civil Aviation Authority (GCAA)Kuwait Civil Aviation Authority (DGCA)Jordan Civil Aviation Authority (JCAA)Director of Civil Aviation of Bermuda (DCA)Qatar Civil Aviation Authority (QCAA)Libya Civil Aviation Authority (LCAA)Pakistan Civil Aviation Authority (PCAA)

Bahrain Civil Aviation Affairs (BCAA)Oman Directorate General of Civil Aviation and Meteorology

(DGCAM)Civil Aviation Authority Cayman Island

Sudan Civil Aviation Authority (SCAA)Saudi Presidency of Civil Aviation (PCA)The State Civil Aviation Authority of the Russian Federation (SCAAR)

U.S. Department of Transportation (DOT)

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06/07 07/08 08/09 10/11

4057

68 125

PEROFRMANCE HIGHLIGHTS

Customers Base In 2010/2011, EGYPTAIR M&E gains new customers with diversity of work scope varying from total care agreement, base maintenance checks, components support and ramp maintenance at Cairo international base or through our domestic line station network, even by our approved outstations . EGYPTAIR M&E is proud to serve more than 120 customers.

10/11

Induction of new capabilities EGYPTAIR M&E successfully added new capabilities to maintain the new EGYPTAIR fleet types; B777-300 & A330-300. In-addition to, adding some capabilities to support our third party customers such as; E190/195, B767 & B757

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No. of Dispatch for EGYPTAIR FleetEGYPTAIR M&E sustains the high service levels provided to EGYPTAIR fleet which grow to 76 aircraft with more than 83000 dispatches.

Technical Dispatch Reliability for EGYPTAIR FleetEGYPTAIR M&E slightly improve the Technical Dispatch Reliability for EGYPTAIR’s passenger aircraft & maintain the same level for cargo aircraft

Financial PerformanceTotal Revenue had been affected by 3.2% reduction compared to 09/10 due to the negative impact on operation during 2nd half of 10/11

EGYPTAIR M&E managed to increase the 3rd party revenue by 25% when compared with the last year 09/10

100

1,600

1,200

300

800

200

400

100

0

0

Annual No. of Dispatchfor EGYPTAIR fleet

Total Revenue Growth

3rd Party REvenue EGYPTAIR Fleet

Average Technical Dispatch Reliability

x100

Mili

on E

GP

Mili

on E

GP

90

57.2

77.283.0

90.1 83.1

09/10 10/1108/0907/0806/07 actual07-08

actual07-08

actual08-09

actual08-09

actual09-10

actual09-10

budget10-11

budget10-11

actual10-11

actual10-11

80

70

60

50

40

100.0%

98.0

96.0

94.0

EGYPTAIR AIRLINES EGYPTAIR Cargo EGYPTAIR EXPRESS

92.0

90.0

2009/2010 2010/2011

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DEVELOPMENT STAGES

By 2002, EGYPTAIR M&E became a separate business entity as a subsidiary of EGYPTAIR HOLDING Co. At early 2006, EGYPTAIR M&E got the EASA Part 145 approval for Line Maintenance activities.At September 2006 EGYPTAIR M&E leveraged the rating of EASA approval by adding the Base Maintenance activities (Airbus types)At September 2007 EGYPTAIR M&E expanded the EASA approval to cover Boeing types.By the end of 2007 EGYPTAIR M&E fulfilled the requirement to be a certified organization according to ISO 9001:2000, Also the calibration lab had been certified according to ISO 17025Early 2008 EGYPTAIR M&E celebrated the opening of brand new Engine Overhaul Workshop.By March 2008 EGYPTAIR M&E got the EASA approval for the new Engine Overhaul W/S.At December 2008 EGYPTAIR M&E celebrated the releasing of first CFM56-5C engine, according to EASA 145 release to service certificate.At May 2009 EGYPTAIR M&E was nominated “The Best Airline Third Party MRO” in the year Aviation Industry Awards, alongside AFI/KLM E&M and Lufthansa TechnikAt June 2009 EGYPTAIR M&E celebrated the inauguration of a new company, Egypt Aero Management Service, A joint venture between EGYPTAIR Holding, EGYPTAIR M&E and Rolls RoyceBy the end of 2008/2009 fiscal year EGYPTAIR M&E hit limit of 1 billion EGP as total revenue.At Jun 2010, EGYPTAIR M&E Approved as B/E Aerospace Service Center for Galley Inserts in African continent.At April 2011, EGYPTAIR M&E obtained the FAA approval under FAR 145 as an approved Repair StationBy the end of 2011 EGYPTAIR M&E joined Embraer aircraft services network as authorized service center for the EMBRAER 170/190 family in the region.

Achieved Projects Line maintenance Building in Terminal 3 .Building for Stuff in Sharm EL-Sheikh Station .Building for Line Maintenance in Burg El Arab Station and furnishings the end date 29/2/2012 .Maximize the capility of engine workshop by adding KITTING EQUIPMENT Developing the painting workshop in Hanger 7000/8000

Human Resource Development .Performed 35911 Training days During 2010/2011 19941 Training days for Engineers .9152 Training days for Technicians .6818 Training days for Others .

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PARTICULARS 2009/2010 2010/2011LONG - TERM ASSETSFixed Assets (net ) 422,428 407,975Projects In Progress 81,958 97,268LONG - TERM investments 15,356 22,475Long - Term Loans And Debit Balances 9,749 7,864Total of Long - term assets (1) 529,491 535,582Current assets Stock 547,717 549,617Customers , Notes Receivables And Debit Accounts 336,238 726,501

Cash in banks and in hand 8,487 18,069Total current assets 892,442 1,294,187Current Liabilities Provisions 3,248 7,429Creditor banks 9,394 65,425Suppliers , Notes Payable And Credit Accounts 770,705 736,764

Total current liabilities 783,347 809,618Working capital (2) 109,095 484,569Total investment (1+2) 638,586 1,020,151financed as follows : Issued capital 365,000 500,000Paid Up Capital - Reserves 263,218 185,814Total Equity (3) 628,218 685,814Long - Term Liabilities (4) 10,368 334,338Total financing of investment (3+4) 638,586 1,020,152

FINANCIAL STATEMENT

EGYPTAIR MAINTENANCE & ENGINEERING CO, STATEMENT OF FINANCIAL POSITION AT 30/6/2011 (000EGP)

REVENUES

EGYPTAIR MAINTENANCE & ENGINEERING CO , THE RESULT ACCOUNTS FROM 1/7/2010 TO 30/6/2011

COSTS & EXPENDITURES

PARTICULARS 2009/2010 (EGP) 2010/2011 (EGP)

Activity Revenues . 1,145,694 1,172,851 Grants & Donations. -Investments Revenues & Interests. 298 138 Other Revenues & Profits. 81,972 33,457 Total Revenues 1,227,964 1,206,446

PARTICULARS 2009/2010 (EGP) 2010/2011 (EGP)

Raw Material , Requisites, Fuel & Spare Parts. 287,293 253,632

Wages. 343,575 440,425 Expenditures. 359,248 346,768 Purchases of goods for sale purposes . -Burdens & Losses. 115,594 108,477 Total Cost & Expenditures. 1,105,710 1,149,302

SURPLUS or DEFICIT 122,254 57,144

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