Schiphol-Rijk, Thursday, June 30, 2005 – KLM Engineering & Maintenance (KLM E&M) and Hamilton Sundstrand have reached agreement for KLM E&M to take over the 51% of EPCOR’s shares. Since 1999, KLM has owned 49% of the shares of EPCOR since its start in 1999. This makes the Schiphol-Rijk-based company a 100% subsidiary of KLM E&M.

With the transfer of these shares, EPCOR’s figures will be consolidated with those of KLM. At the same time, two Hamilton Sundstrand supervisory directors will be stepping down from EPCOR and supervision of the company’s daily operations will then fall under the responsibilities of the two incumbent KLM supervisory directors.

It is KLM’s and EPCOR’s vision that by taking over ownership, EPCOR can continue to grow in new component repair capabilities, while maintaining its position in current repair capabilities. Supported by its well-known owners, KLM and Air France, EPCOR aims delivering the maximum value to our customers for components repaired at EPCOR. EPCOR will continue to operate its business in the most efficient manner and continually strive to improve its operational performance.

Acquisition of a 100% stake in EPCOR serves to underline KLM E&M’s assertion that the component maintenance market is one of its primary areas of focus. The takeover will strengthen KLM E&M’s position in the aircraft components maintenance market.