CFAN

Growing Composite Blade Production Drives Expansion of CFAN facility

SAN MARCOS, TEXAS - March 29, 2006 - In anticipating increased demand for composite fan blades for commercial jet engines, CFAN breaks ground to expand its San Macros facility.

CFAN, a 50/50 joint company of Snecma of France and General Electric Company (GE), manufactures composite fan blades and other composite engine components for the aerospace industry. The company has operated in a 160,000 square foot facility since 1993.

CFAN manufactures composite fan blades for the GE90-94B and GE90-115B engines which power the twin-engine Boeing 777 aircraft. The GE90 is the world's largest and most powerful jet engine, and the only jet engine in commercial airline service with composite front fan blades. Snecma is a major revenue-sharing participant with GE on GE90 high thrust engine programs.

Each GE90 engine has 22 large, wide-chord blades. More than 9,000 GE90 composite blades are now in service. Production in 2005 will reach approximately 1500 composite blades in San Marcos. However, projected production rates for GE90 engines are growing. As a result, production rates at San Marcos are expected to exceed 3,000 composite fan blades annually by 2007.

In addition, CFAN will produce the new composite fan blade for the GEnx engine, GE's new jet engine now under development for the Boeing 787 and Airbus A350 aircraft. Production of the GEnx engine begins in 2007 as the engine is scheduled to enter airline service in 2008. Production on this composite blade is expected to reach 1,500 to 1,800 blades per year in 2009.

As a result of this projected growth, employment at the CFAN facility is expected to grow from 200 in late 2004 to 400 employees by late 2008.

"The GE90 composite fan blade has been an extraordinary success story in airline operation over the past decade," said Robert Baeumel, CFAN president. "We are thrilled to have this innovative composite technology incorporated into the new GEnx engine."

CFAN has a unique expertise in manufacturing highly contoured, thick laminate jet engine fan blades. CFAN has produced composite parts with advanced fibers including carbon, Kevlar and fiberglass; thermoset resins including epoxy, BMI, and PMR15; and bonded structures containing metallic or composite honeycomb. CFAN has also been recognized by OSHA as a safe work site and received the VPP "Star" Site designation.