BOARD OF AIRPORT COMMISSIONERS APPROVES $241.7 MILLION CONTRACT TO CONSTRUCT SOUTH AIRFIELD RUNWAY IMPROVEMENT PROJECT

LOS ANGELES, CA -- (MARKET WIRE) -- 12/20/2005 -- The Los Angeles Board of Airport Commissioners today awarded a $241,770,114 contract to a joint venture of Tutor-Saliba, Sylmar, Calif., and O&G Industries, Torrington, Conn., to construct the South Airfield Improvement Project at Los Angeles International Airport (LAX) in order to improve airfield safety. This action is contingent on final approvals of the project-level tiered final Environmental Impact Report (EIR) and LAX Plan Compliance.

The South Airfield Improvement Project consists of moving Runway 7R-25L at LAX approximately 55 feet south of its present location and constructing a new parallel taxiway between the airport's two south airfield runways. The project includes removing existing deteriorated concrete and asphalt runway pavement; constructing Portland Cement Concrete and asphalt pavement; installing airfield signage, lighting systems, airfield pavement markings and storm drains; and improving related runway-taxiway intersections. The project also includes installation of new runway navigational aids and making structural improvements to the Sepulveda Tunnel.

Construction is expected to begin early 2006 and last 26 months.

Airport officials have determined that the relocation of the runway and the addition of the taxiway are critical to improving airfield safety and reducing the potential for runway incursions on the south airfield. LAX and Federal Aviation Administration (FAA) officials have been concerned over recent years about the persistent number of runway incursions of varying severity. While no accidents between aircraft landing or departing LAX have occurred on the South Runway Complex, officials studied the problem and determined the southside project offered the best physical solution to reduce the risk of runway incursions. Landing aircraft on Runway 7R-25L now will be physically separated from the neighboring takeoff runway as they move off the runway to reach passenger terminals via a new center taxiway.

Runway 7R-25L is not the only runway at LAX that can accommodate the A-380 aircraft. LAWA regrets an inaccurate statement in yesterday's news release. LAWA wants to underscore that the South Airfield Improvement Project is designed to improve airfield safety as well as airport security and that these improvements are a federal aviation priority.