EANS-Adhoc: FACC AG / Acquisition of FACC finalised ISIN: AT0000A05TW8

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03.12.2009

Acquisition of FACC finalised

• FACC to accelerate growth under new ownership
    • Customers of FACC welcome the change of ownership
    • A share capital increase of 40 million Euros is carried out

Ried/Vienna - 3. December 2009 - The acquisition of the majority of FACC AG by
the international aerospace company Xi´an Aircraft Industry (Group) Company
Ltd. (XAC) and the private equity company Advanced Treasure Limited (ATL),
announced in October, was finalised today: XAC, headquartered in Xian (China),
and ATL, headquartered in Hongkong, now formally are the majority owners of
FACC AG, holding 91.25% of the shares of the leading Austrian aerospace
supplier in which XAC holds 90% and ATL holds 10% shares. 5% remain in the
possession of the Austrian holding company ACC Kooperationen und Beteiligungen
GmbH and 3.75% are owned by Stephan Ges.mbH.

After all conditions for the transaction closing have been cleared by both
sides, the majority acquisition by XAC has today been formally completed.
Following the closing of the transaction today, the newly formed supervisory
board will now take up its function. It consists of four representatives of the
new owner, one member from Goodrich Corporation, one from Beijing Institute of
Aeronautical Materials (BIAM), and three representatives of the FACC works
council. All former supervisory board members have resigned.

Growth strategy
The new owner will reinforce the successful international growth strategy that
FACC persecuted under the former owners and provide the company access to new
capital as well as to the fast growing markets of China and the Asia-Pacific
region. FACC will remain a stand-alone independent corporate entity with the
current management team under the leadership of CEO Walter Stephan. The
headquarters in Ried im Innkreis and the other Austrian and international
locations with a workforce of 1,560 people will be retained.

Management committed to new ownership
The management of FACC is fully committed to the new ownership structure and
the opportunities it presents for future business development. Walter Stephan,
CEO of FACC AG, will remain invested in the company and says: "In the past
years, FACC has achieved impressive development. XAC will strengthen our
position as an internationally successful development and systems supplier to
the OEMs and first tiers in the aviation industry. This is an unique
opportunity to step up the growth path, supported by the new owner. XAC has a
long-term strategic interest in the aviation industry, has excellent contacts
in the growth market of China and long-term commitment to FACC and its
customers. "

Share Capital Increase
Dr. Bernhard Matzner, CFO of FACC AG, underlines that the partnership with XAC
provides access to the huge Chinese market and at the same time offers
opportunities to increase the share of USD based manufacturing by outsourcing
projects to China which will also lead to a better hedge against the ever
weakening dollar. In addition, the share capital increase will significantly
strengthen the company's position among the Tier 1 suppliers.

FACC and XAC combine their strengths
FACC and XAC enter into this strategic partnership with the goal to provide
high-quality, cost effective solutions to the global aviation industry. The two
companies combine their individual strengths. On one hand, FACC as a Tier 1
supplier has an established global customer base, an extensive product
portfolio - including the new aircraft programs - and a well-developed supply
chain and is among the market leaders in composite design and manufacturing.
Moreover, FACC is very well represented on the European and American market.

XAC, on the other hand, plans to make high investments in the aviation sector -
both in the form of the above mentioned share capital increase as well as in
new programs and technologies. The Chinese aviation company offers a favourable
operating cost structure and production capacity in a USD based region. XAC has
many years experience in the manufacture of wings and side stabilizers. Being
located in the fast-growing Chinese aviation market, for which in the next 20
years a demand for more than 3,000 new aircraft is projected, offers a great
business potential.

Globally positioned
FACC and XAC are forging a partnership to provide the worldwide customers in
the aerospace market a wide range of business offerings that are based on a
global network of engineering, manufacturing and customer support sites as well
as supply chain partners in Europe, China, Malaysia, India and Abu Dhabi. This
creates an ideal condition to best meet customer needs and to provide leading-
edge technology for ready-to-install solutions. FACC wants to be a preferred
Tier 1 supplier to OEMs for aerostructures, engine and nacelle components and
interior furnishings. The objectives of FACC are to provide turn-key business
solutions ranging from risk-sharing participation through program financing,
R&D, engineering, to industrialization and global sourcing networks; to expand
market share by emphasizing the research and engineering resources and to

support the specified growth plans by enlarging the client  base.  Another  goal
is to continuously improve the production processes in order  to  maintain  cost
leadership. An  experienced  management  and  financial  stability  ensure  that
customer expectations are met or exceeded.

About XAC
As part of the AVIC  group,  XAC  is  a  large,  global  industrial  group  with
headquarters  in  Xi´an,  China.   XAC  specializes  in  the   development   and

manufacture of large and medium-sized aircraft. As a supplier of the fuselage
and the wing, the majority-owned subsidiary of XAC,
Xi´an Aircraft International Corporation ("XAIC") is heavily involved in the
Chinese regional jet program ARJ21. XAIC will also play a significant role in
the development and production of the planned medium-range aircraft C919. Since
1980, XAC has been a supplier to international customers, including Boeing and
Airbus, for various structural components such as A320 wing box and the Boeing
737 vertical fin. Further information can be found under www.xac.com.cn.

About FACC
FACC AG is one of the world´s leading companies in the development and
production of advanced fibber reinforced composite components and systems for
the aviation industry. Their product portfolio ranges from structural
components for the fuselage and wings to engine components to complete
passenger cabins for passenger planes, business jets and helicopters. FACC is a
supplier to all large aircraft manufacturers such as Airbus, Boeing,
Bombardier, Embraer and ACAC as well as for engine manufacturers and sub-
suppliers of manufacturers. Further information can be found under www.facc.at.

For further information please contact:

Walter A. Stephan
CEO, FACC AG
Tel: 059-616-1100, E-Mail: [email protected]

Andrea Schachinger
Corporate Communication
Tel: 059/616-1194, E-Mail: [email protected]
www.facc.at

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Further inquiry note:
Dr. Bernhard Matzner
Chief Financial Officer/FACC AG
Tel. 059-616-1324
[email protected]
end of announcement euro adhoc
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issuer:   FACC AG
          Fischerstraße 9
          A-4910 Ried im Innkreis
phone:    +43 59 616-0
WWW:      www.facc.at
sector:   Industrial Components
ISIN:     AT0000A05TW8
indexes:

stockmarkets: Regulated free trade: Wien
language: English

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