EADS N.V. - EADS posts strong third-quarter: Revenues increase of 26% to EUR 6.6 billion

Revenues for the nine months beginning January and ending September 2001 rose 30% to EUR 20.7 billion compared to the same period last year
Third quarter revenues grew 26% compared to Q3 2000
Order intake up 52% in the first nine months, representing more than twice the size of revenues
CEOs: "We expect to achieve our revenues and EBIT growth targets set for 2001, and we have been taking active measures to preserve reasonable profitability as a reaction to an increasingly challenging environment."

EADS European Aeronautic Defence and Space Company (stock exchange symbol: EAD) is on track to achieve revenues and profit targets set for the current year, thanks to sound company fundamentals, despite the challenging market environment. The world's second largest aerospace and defence company announced on Tuesday strong third quarter revenues representing an increase of 26% to EUR 6.6 billion over the third quarter of last year. Excluding the impact of the first time consolidation of Airbus UK in 2001, this increase represents a rise of 9% compared to pro forma figures for the same period last year.

Year-to-date revenues as of September 30 amounted to EUR 20.7 billion, up 30%. Excluding the impact of the consolidation of Airbus UK, nine-months revenues increased by 12%. This double-digit growth in revenues was generated through increased deliveries by Airbus, revenues growth in all divisions but Space, and the stronger US-Dollar.

Philippe Camus and Rainer Hertrich, CEOs of EADS, stated: "Our growth forecasts for the full year 2001 are confirmed by our third-quarter figures. We expect to achieve our 20% revenue growth target for 2001, despite a now more challenging global economic environment. The company is on track for an EBIT increase of 15% for the current year on the basis of 320 Airbus aircraft deliveries."

According to the CEOs, "the company's fundamentals remain sound. Following the events of 11 September, we have taken active company-wide measures to maintain profitability. These include: the freezing of Airbus production capacity at the current level; the hiring freeze at Airbus besides the A380 project; and the implementation of on-going cost savings plans. These steps, combined with our highly flexible production system, will allow us to be profitable even with significant variation in Airbus production rates."

"In 2002, EADS anticipates delivering 300 Airbus aircraft. Thanks to its flexible production system, Airbus is able to maintain profitability at this production level," the CEOs said.

"The development of the A380 continues as planned," the CEOs added, "since the commercial prospects of this product are outstanding, confirmed by the large order of 22 A380 aircraft by Emirates. In addition, the positive trend in our defence business is underlined by the strong revenues growth achieved at the Defence and Civil Systems and Aeronautics divisions, with plus 24% and 12% growth, respectively, in the first nine months of 2001 compared to the same period of 2000."

EADS' order intake grew 52% to EUR 47.2 billion during the first nine months of 2001. Order backlog at 30 September increased by 51% to reach EUR 182.4 billion. Representing six years of business, the order backlog gives EADS unique strength to manage the current difficult market conditions.

In the first nine months of 2001, revenues at the Airbus division showed a 40% growth, mainly thanks to higher deliveries (236 compared to 218), to favourable US-Dollar exchange rates and to the Airbus UK consolidation effect. Even without this effect, Airbus revenues grew by 12 %. Through September 2001, Airbus had received 325 gross aircraft orders, representing a high market share of 58%, underlining the market preference for Airbus products. These commercial successes result in a strong and solid order backlog of 1,665 aircraft worth EUR 155 billion, with a balanced geographical breakdown and a market share of 54%. Despite the tense current market conditions, Airbus has confirmed its previous plans to book a total of 350 to 400 new gross orders for the full year 2001.

Revenues at the Military Transport Aircraft division increased 39% in the first nine months, mainly thanks to the increased business with the Spanish Air Force. Orders for eight C-295 aircraft for the Polish Air Force and the contract for 86 wings for the Dornier 728 aircraft resulted in a very strong rise in order intake in the third quarter.

Revenues at the Space division were down 6% during the first nine months of 2001, compared to the same period of 2000. The situation at Space is mainly a product of the difficult market environment, particularly in the commercial telecommunications satellite and commercial launcher businesses. Order intake was lower than in 2000, when some large long-term contracts for Ariane 5, ballistic missiles and telecommunications satellites were awarded.

Revenues at the Defence and Civil Systems division grew by 24% during the nine month period, compared to last year. Revenue growth was a result of increases in the missiles business based on a strong order backlog, as well as an effect of the first-time full consolidation of EADS Defence and Security Networks (EDSN). Orders decreased compared to the same period of last year due to lower intake in the missiles business. As of September 30, backlog represents roughly three years of revenues.

The Aeronautics division experienced 12% growth during the 9-months-period mainly thanks to the ramp-up of the Eurofighter and higher sales for civil helicopters of Eurocopter. Large long-term orders in the defence projects support the high order backlog of Aeronautics representing three years of revenues. The order intake in the first nine months of last year was exceptionally high thanks to serial and development contracts for the four-nation NH90 helicopter. The recent successful campaigns for the export of Eurocopter's Tiger helicopters to Australia and for the NH90 to the Nordic countries (EADS share worth about EUR 1.3 billion for both) will further boost the order backlog.

EADS European Aeronautic Defence and Space Company is the largest European aerospace and defence company and the second largest worldwide. In 2000, revenues amounted to EUR 24.2 billion (excluding Airbus UK) and EADS had a workforce of 102,600 at the end of September 2001 (including 100% of Airbus). It is active in the sectors of commercial aircraft, helicopters, space, military transport and combat aircraft as well as defence technology and services. Among others, EADS holds 80 percent of Airbus, 75 percent of the space company Astrium, 100 percent of the helicopter manufacturer Eurocopter, 43 percent in the Eurofighter programme and a prospective 37.5 percent in the missile company MBDA (in formation).

Eckhard Zanger
EADS Communications Finance
Tel. +49 89 607 27961

EADS Figures Third Quarter 2001
Revenues in millions of EUR	July - September 2001	July - September 2000	Change
Airbus^*	4,449	3,506	+27%
Military Transport Aircraft	111	146	-24%
Space	489	555	-12%
Defence and Civil Systems	686	578	+19%
Aeronautics	1,141	877	+30%
Eliminations and Headquarters	-234	-377	+38%
Total	6,642	5,285	+26%