Ex-Im Bank Offers Reduced Exposure Fee for Aircraft Buyers
in Countries Ratifying the Cape Town Treaty

International buyers of new U.S.-manufactured large commercial aircraft in countries that sign, ratify and implement the Cape Town Treaty (including certain specified optional declarations) are eligible for up to a one-third reduction of the exposure fee charged by Ex-Im Bank for its aircraft export financing.

Ex-Im Bank’s offer enables eligible international buyers to receive an Ex-Im Bank exposure fee as low as 2 percent, which represents a reduction of one-third of the current minimum 3 percent exposure fee on the Bank’s asset-backed financings of new large commercial aircraft. More favorable financing terms also apply to asset-backed financings of spare engines to such buyers.

Ex-Im Bank also extends preferential financing terms to leasing companies but only if the aircraft leasing company and the airline lessee under the initial operating lease are both based in a Cape Town Treaty country that makes the appropriate declarations under the treaty and the related aircraft protocol.

Ex-Im Bank has extended its special offer for eligible buyers of new large commercial aircraft and spare engines under transactions approved by Ex-Im Bank’s board of directors through fiscal year 2006, which will end on September 30, 2006.

Airlines in four countries – Ethiopia, Pakistan, Panama and Oman – already have benefited from Ex-Im Bank’s reduced exposure fee following their countries’ ratification or accession to the treaty. For example, Ethiopian Airlines was able to significantly reduce its financing costs with respect to its acquisition of several Boeing 767 and Boeing 737 aircraft because of Ex-Im Bank’s offer.

The Cape Town Treaty is an international treaty to facilitate the cross-border financing and leasing of high-value mobile equipment, and the accompanying aircraft protocol applies the treaty’s provisions to aircraft, aircraft engines and helicopters. To date, the treaty has been signed by 28 countries and ratified or acceded to by 10 countries, including the United States. The Cape Town Treaty and the related aircraft protocol entered into force on March 1, 2006, in the 10 countries that have ratified or acceded to the treaty.

More information on the Cape Town Treaty can be found on the Web site of UNIDROIT, an independent intergovernmental organization based in Rome, Italy, that studies the needs and methods for modernizing, harmonizing and coordinating private and commercial law between states and groups of states.

See http://www.unidroit.org/english/conventions/mobile-equipment/main.htm