Press Notice - BBA Aviation

4th July 2005

BBA GROUP PLC

BBA ANNOUNCES DISPOSAL OF MINORITY INTEREST IN FINOTECH GMBH AND THE ACQUISITION OF INTERNATIONAL GOVERNOR SERVICES INC

BBA Group Plc today announces the disposal of its 40% minority interest in Finotech Gmbh for $82 million (£46 million) and the acquisition of International Governor Services Inc for an initial payment of $18 million (£10 million).

Finotech Gmbh:

BBA Group announces today that on the 30th June 2005 it disposed of its 40% share in Finotech Gmbh for $82 million to its joint venture partner, Clopay Plastics Products Company a subsidiary of The Griffon Corporation.

Finotech, established in 1996, is a leading producer of sophisticated films, laminates and printing solutions primarily for the hygiene industry. It has been a highly successful joint venture closely connected to BBA’s non-wovens business, but as the market has changed Finotech’s involvement in non-wovens has been significantly reduced.

BBA’s share of Finotech’s pre-tax profits for the six months to 30th June 2005 will be approximately £2 million. The profit on disposal of its 40% share in the joint venture will amount to approximately £23 million.

International Governor Services:

BBA today also announces the acquisition of International Governor Services Inc (IGS) for an initial payment of $18 million with further payments of up to $10 million subject to business performance over a 3 year period. IGS, based in Broomfield, Colorado, specialises in the overhaul and repair of small turbine engine controls including fuel controls and governors used on a wide range of popular business jet and turboprop engines. It is an approved vendor for Pratt & Whitney and Raytheon. In the year ended 31st December 2004 IGS recorded sales of circa. $10 million and is expected to return above the group’s pre-tax cost of capital (circa. 12%) in the first full year of ownership.

Commenting on the announcement Roy McGlone, Chief Executive of the BBA Group, said:

“Finotech has been a very successful investment for BBA but we felt that as the markets changed and Finotech’s involvement with non-wovens reduced, it was the right time to dispose of our interest in the business and to redeploy the funds elsewhere. We are delighted Clopay, our joint venture partner in Finotech, has acquired our shares and we wish them every success in the future. We will continue to work with Clopay in a number of other market areas.

“The acquisition of IGS complements our existing parts and engine repair businesses expanding our capability to provide more services to our customers. This is consistent with our stated strategy of expanding our component, repair and overhaul services and we continue to look for other opportunities to invest in this area.

For further information please contact:

Roy McGlone, Chief Executive (020) 7514 3990
Andrew Wood, Finance Director (020) 7514 3950
BBA GROUP PLC

Brunswick Group LLP
Lucie Anne Brailsford 020 7404 5959
Jemma Hill