EADS North America Selects Mobile, Alabama as the Location For KC-330 Advanced Tanker U.S. Production Facility

Jun 22nd, 2005

(Arlington, VA; Mobile, AL: June 22, 2005)
Mobile Alabama’s Brookley Industrial Complex has been selected by EADS North America as the site for the EADS KC-330 advanced tanker U.S. production facility, providing a strategically-located complex on the Gulf of Mexico with existing runways, a deepwater port and a skilled aerospace workforce. An Airbus Engineering Center will be co-located with the future production facility and is scheduled to begin operations in 2006.

The decision was announced today by EADS North America, completing a five-month nationwide search for the location that will become the center of activity for the KC-330 – which is being offered to recapitalize the U.S. Air Force's aerial refueling fleet. More than 70 sites from 32 states originally responded to EADS North America’s Request for Information (RFI). The list of locations under consideration subsequently was narrowed to four candidate sites in Alabama, Florida, Mississippi and South Carolina. The KC-330 industrial site selection process was managed for EADS North America by The Staubach Company, an international real estate and management firm headquartered in Dallas, Texas.

"All four potential locations were very qualified candidate sites, with the Brookley Industrial Complex meeting or exceeding all of our requirements for the KC-330 production facility," said Ralph D. Crosby, Jr., EADS North America’s Chairman and CEO. "We were extremely impressed by the winning proposal, and by the enthusiastic support from the city of Mobile, the Mobile Bay region, the state of Alabama, and its U.S. Congressional delegation. The selection of Mobile also serves the interests of neighboring Florida and Mississippi, which will contribute significantly to our employment base at the facility.

"I wish to thank Florida, Mississippi and South Carolina for supporting our efforts. I am pleased to announce that EADS will continue our relationship with these great states through the establishment of a five year, university-level cooperative/internship program conducted at the Airbus Engineering Center in Mobile. This unique program will provide selected students from each state the opportunity to work in the Center and gain valuable experience for future careers in aerospace engineering," concluded Mr. Crosby.

Mobile’s Brookley Industrial Complex covers more than 4.5 million square feet of industrial space and includes the Mobile Downtown Airport, which is equipped with two large runways and is home to aerospace manufacturing, aircraft maintenance and air freight businesses. The Alabama State Port Authority’s Choctaw Point Container Terminal and Intermodal Yard is directly adjacent to the Brookley site, providing the deepwater port access that is required for the KC-330 production facility’s operation.

"This victory catapults Alabama toward a new era of growth in the aerospace and defense industries," said Alabama Governor Bob Riley. "Together, Alabama and EADS have united and are forging a partnership that will benefit both the hardworking citizens of our state and this world-renowned company."

"I am extremely pleased that Mobile has been selected for this production facility. Mobile is the ideal choice as it offers proximity to an airport and coastal waters as well as significant space to grow and expand," stated U.S. Senator Richard Shelby. "Modernization of the U.S. Air Force’s aging tanker fleet is vital to America’s defense and homeland security, and I am proud that Alabama is positioned to play a role as the future home of the KC-330 facility. Our country’s military strength relies on a competitive industrial base, and I fully support an open and fair competition in the Defense Department’s section of the Air Force’s next tanker aircraft."

"We welcome the decision by EADS to locate its U.S. tanker production facility in Alabama," said U.S. Senator Jeff Sessions. "Alabama has successfully built a world renowned automotive industrial capability and now looks forward to becoming the next aerospace center of excellence for large aircraft production in the United States."

Congressman Jo Bonner added, "EADS will benefit from locating in Mobile and from some of the very finest employees in the U.S. workforce. The KC-330 aircraft assembled in Mobile will be the most capable Air Force refueling aircraft to enter the fighting force --built in America with American labor."

Development of the KC-330 industrial facility will begin as a new Airbus Engineering Center in the United States, with operations starting in early 2006 and its employment growing to approximately 150 persons. This facility is to support continuing engineering work on commercial Airbus models and military derivative aircraft - including the A330, A340 and A350 jetliners, as well as the KC-330 tanker.

Production will be initiated at the Mobile facility upon receipt of an order from the U.S. Air Force for the KC-330 aerial refueling tanker. Activities will include aircraft final assembly, militarization and modification. Depending on the size and pace of the Air Force order, the total facility investment could reach $600 million, and direct employment levels could be as high as 1,000 workers --including a mix of structure mechanics, electronic and systems specialists, engineers, quality assurance personnel and management.

Once operational, the Airbus Engineering Center also will become home to the EADS cooperative internship program. Participating students will be selected from universities located in Florida, Mississippi and South Carolina. Each state will receive a $100,000 grant, disbursed over the five-year program, to support their engineering interns at the Center.

EADS North America also will conduct a press conference today at the Mobile Convention Center beginning at 5:00 pm Central Daylight Saving Time, with government and company officials participating. The Mobile Convention Center is located at One South Water Street, Mobile Alabama.

About EADS North America (www.eads-na.com)
EADS North America is the North American operations of EADS, the second largest aerospace and defense company in the world. As a leader in all sectors of defense and homeland security, EADS North America and its parent company, EADS, contribute over $6 billion to the U.S. economy annually and support more than 100,000 American jobs through its network of suppliers and services. With 11 operating companies located in 29 cities and 16 states, EADS North America offers a broad array of advanced solutions to its customers in the commercial, homeland security, aerospace and defense markets.

About Airbus North America (www.airbus.com)
A leading aircraft manufacturer with the most modern and comprehensive product line on the market, Airbus is a global company with design and manufacturing facilities in France, Germany, the UK and Spain, as well as subsidiaries in the U.S., China and Japan. Airbus is an EADS joint Company with BAE Systems

Further details on EADS North America's aerial refueling aircraft capabilities and the KC-330 advanced tanker are available at www.usatanker.com.

Guy Hicks VP Communications EADS North America
Tel.: 703-236-3300 mailto: guy.hicks@eads-na.com