RUAG amalgamates aerospace structures business with other civilian activities

RUAG is amalgamating all activities associated with the production of high-quality, high- precision and technologically sophisticated assemblies for aircraft, aero engines and mechanical engineering applications in a new organizational unit. The integration project will affect aircraft and aero engine structure manufacturing at Emmen, Oberpfaffenhofen (Germany) and Geneva as well as RUAG Components' activities at Altdorf. Dr Viktor Haefeli, managing director or RUAG Components in Altdorf, will head the integration project and aerospace structures unit.

RUAG's Board of Directors first raised the prospect of changes in the Group's organizational and management structure two years ago, saying that the changes would occur after 2007 and would be in conjunction with Strategy 2010. Two factors have prompted it to initiate the integration project now: the growth in aerospace structure sales to new customers and the associated new investments on the one hand, and the pressure on margins caused by the downward trend of the US dollar on the other. RUAG expects the reorganization to produce synergies by allowing shared use of production facilities and technologies. Furthermore customers will be able to procure important technologies from a single source within RUAG.

As a result of the amalgamation, Dr Myriam Meyer, currently CEO of RUAG Aerospace, will leave the company at her own request on 31 July 2008.

Group CEO Toni Wicki will assume interim management responsibility for RUAG Aerospace.

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