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$180 Million Additional Carbon Fibre Expansion Program by Hexcel

16 October 2007

Hexcel Corporation will expand its carbon fibre production capacity through the addition of both new carbon fibre lines and a new precursor line.

The construction will be completed within two years, increasing Hexcel's carbon fibre production nameplate capacity by approximately 70% to a total of about 16 million pounds. The expansion is needed to meet existing customer forecasts in commercial aerospace, space & defence and strategic industrial applications such as the recently announced contract for rotor tubes for the American Centrifuge Plant.

Commenting on the expansion investment, Mr. David E. Berges, Hexcel's Chairman and Chief Executive Officer said, ""We are excited by the accelerating demand for carbon fibre composites, driven by market growth and the increasing penetration of these materials, particularly in commercial aerospace. As a world leader in advanced structural materials, Hexcel is committed to supporting this growth through product development and capacity expansion. The expansion will cost about $180 million spread over 2007, 2008 and 2009. Our team has done an outstanding job on our first expansion, and the knowledge gained has enabled us to continue to drive down capital costs per pound and shorten the time for construction and qualification.""

Hexcel Corporation is a leading advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibres, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defence and industrial applications.





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