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Capacity adjustment at Astrium Space Infrastructure

Bremen, 20 November 2002

* Difficult order situation worldwide also affects German space industry
* Astrium Space Infrastructure to cut 280 jobs by the end of 2004
* Almost 200 jobs in Bremen affected

The Space Infractructure division of the European space company Astrium will cut 280 jobs. "There are particularly four reasons that force us to take this measure“, said Josef Kind, Astrium board member and President Space Infrastructure on the occasion of a staff meeting held in Bremen on Wednesday. "Production of Ariane-4 is on its way out. Demand for satellite transportation is weakening which is meant that we will built less Ariane-5 stages than planned and that at considerably lower prices. The Columbus programme will be completed in 2004. Considerable delays in contract awarding concerning the industrial operation of the European components of the International Space Station will also have an unfavourable effect on our business.“

Capacity adjustment will mainly focus on the Bremen site of Astrium where almost 200 jobs will be cut. The Space Infrastructure sectors in Ottobrunn, Lampoldshausen and Trauen, however, will be affected as well, Mr. Kind continued. Staff reduction shall be completed by the end of 2004.

All over the world, the space industry is increasingly facing the problem of standing its ground. The telecommunications market is declining considerably. Stagnant or cut public-sector space budgets and reanimated discussion of already approved large-scale projects such as the International Space Station or Galileo are reasons for the currently difficult situation of the industry.

At present, talks are held between the management and the works council of Astrium to define appropriate measures to implement this capacity adjustment. Both parties agree in saying that, if possible, such cutback should be carried out in a socially acceptable way i.e. without any dismissals for operational reasons. "We can, however, only be successful on the pre-condition that our colleagues are ready to take on new tasks at their location or at other locations of the EADS Group", said Mr. Kind.

These capacity adjustment measures will strengthen the company and ensure its competitiveness in the market. The internationally recognised know-how of the company's staff and the excellent quality of Astrium's services and products will prevail on the market in the long run, emphasised Josef Kind.

Astrium, Europe's leading space company, is a joint company of EADS European Aeronautic Defence and Space Company (75%) and BAE SYSTEMS (25%). The Space Infrastructure business division of Astrium develops and operates space laboratories and experiment facilities. The division also develops stages and propulsion systems for the Ariane family of launchers as well as propulsion systems for satellites. In 2001, Astrium Space Infrastructure achieved a turnover of about € 700 million with a labour force of 3,000.

Your contact:
Astrium Space Infrastructure
Kirsten Leung
Telefon: 0421-539-5326 / Fax: 0421-539-4534