SAFAIR ADDS TWO BOEING 737S AND EXPANDS MAINTENANCE AND TRAINING SERVICES

The Boeing Company and Safair (PTY) LTD signed an agreement today to acquire two Boeing Next-Generation 737-700 airplanes. Today's agreement marks progress toward a 10-airplane acquisition intention announced Sept. 6, 2000 at the Africa Aerospace and Defense air show. Through a cooperative agreement, Boeing and CFM International, Inc. (CFMI) will work together with Safair in expanding the operator's existing maintenance and training service facility to provide comprehensive maintenance services to its lease customers.

"We're thrilled to be a part of this venture and to extend business in the African region," said Ralph Boettger, Safair, chief executive. "We look forward to teaming with Boeing and CFMI to make this cooperative agreement the success we know it can be."

Safair, owned by Imperial Holdings Limited based in Johannesburg, South Africa, specializes in the leasing and chartering of passenger and cargo aircraft to domestic and international operators.

"Boeing is looking forward to the opportunity to grow this new relationship with Safair, which brings us a unique opportunity to have a lessor provide not only the aircraft, but maintenance and training services," said Doug Groseclose, vice president - Boeing Commercial Airplanes Group Sales. "This is another example of how Boeing can provide a total solution for our customers."

Boeing Commercial Aviation Services organization offers total service solutions to support virtually all of an airline's operational requirements. Customers can count on these resources and Boeing's unmatched portfolio of products and services.

The enhanced relationship will explore new opportunities that will continue to expand commercial airplane business and add more value to aircraft operators in Africa. Safair currently has more than 30 Boeing airplanes in their fleet which are currently leased to British Airways operating as Comair, South African Airways, Spirit Airways, Air Liberte, Dinar, DHL, and Airworld, many of which also have maintenance agreements with Safair.

The Boeing Next-Generation 737 is the fastest-selling commercial jetliner of all time and is a leader in dispatch reliability. Boeing has logged orders for more than 1,700 Next-Generation 737s since launching the program in 1993.

Safair's primary focus is on the African market, but has lease customers in Singapore, Europe, Ireland, Argentina and the USA.