Fraport AG and Shanghai Airport Group Will Soon Establish Joint Company for Offering Consulting Services in China

Frankfurt/Main, Germany (ots) - Fraport AG (FSE: FRA) Frankfurt Airport Services

Worldwide and the Shanghai Airport Group have signed as a first step of its

partnership a letter of intent concerning the founding of a joint-venture

company in China. Fraport's CEO, Dr. Wilhelm Bender, and his Chinese colleague,

Wu Nianzhu, have agreed that this joint-venture company will commence work

before the end of the year.

Both partners will hold a 50-percent share in the new venture and the contract

will run 20 years. Based in Shanghai, the new company will focus on airport

consulting and staff training. The capital investment will be limited to

approximately €200,000. Further possibilities for cooperation between the

Frankfurt and Shanghai airports are being currently examined and cooperation is

explicitly desired by both parties.

A first cooperation agreement had been signed at the end of 2002. When experts

of both airport companies met in March 2003 it was agreed to examine the set-up

of a joint-venture company with specific focus on the marketing of airport know-

how in China. Decision-makers in both companies still have to approve the

agreement. Furthermore, the partnership agreement needs to be signed and the new

company has to be registered under Chinese law.