CIT Aerospace Announces Major Agreement With Virgin Blue; Transaction Led by CIT Aerospace's New Australian Office.

Business Editors

SYDNEY, Australia--(BUSINESS WIRE)--April 18, 2001

CIT Aerospace, a unit of CIT (NYSE: CIT; TSE: CIT.U) and one of the largest aerospace financing and leasing companies, announced today a major agreement with Australian airline Virgin Blue for the lease of two Boeing 737-800 and two Boeing 737-700 or -800 aircraft.

Orchestrated by CIT Aerospace's new Australian office, the agreement brokers the first Next Generation Boeing 737-800 to an Australian airline. Terms of the agreement were not disclosed.

The transaction between CIT and Virgin Blue is for four new Boeing 737 aircraft, powered by CFM56-7B24 engines. The aircraft are due for delivery between November 2001 and October 2002.

"We see great potential for the Australian low-fare airline business and our agreement with Virgin Blue, one of our newest customers, is an important step in solidifying our presence as a preferred lessor for airlines," said C. Jeffrey Knittel, president of CIT Aerospace. "This deal is part of our aggressive expansion strategy in Australia and the South Pacific where we are looking to increase our market share."

"Virgin Blue has been very pleased with the tremendous growth in passenger numbers in Australia now that fares have been more than halved" said Brett Godfrey, CEO of Virgin Blue. "Virgin Blue is continuing its growth plan with these additional four new aircraft from CIT and have agreed to take 737-800 aircraft with greater seating capacity showing our commitment and expectation of future growth to come. We have also established a very good business relationship with CIT and are encouraged by their similar expansion plans into the region with both parties seeing this as the start of a long and successful relationship together," added Godfrey.

CIT Aerospace Australia opened its first office, located in Sydney, earlier this year. The office, led by Damon J. D'Agostino, will be serving the Australian and South Pacific markets. Prior to the opening of the office, CIT Aerospace served the Australian market through its Florida office. To date, CIT Aerospace Australia has contracts for seven aircraft, serving two of Australia's major airlines.

"We feel confident that Virgin Blue will be successful with their growth plan utilizing the 737-800 aircraft," said Damon J. D'Agostino, Director, CIT Aerospace Australia. "This is the first agreement brokered by our new office in Australia and we are looking forward to serving the growing Australian market."

Low-fare carrier Virgin Blue was formed in August 2000 and operates scheduled domestic trunk routes between Australia's capital as well as regional cities. The airline is Australia's newest and best low-cost carrier offering a refreshingly new approach to air travel in Australia. Since its inaugural flight, Virgin Blue has focused on major cities as well as routes otherwise ignored by bigger airlines, resulting in growth ranging from 40% to as much as 100% on its routes. The airline already operates six Boeing 737-400s.

About CIT

CIT Aerospace has more than 90 airline customers worldwide and a portfolio of more than 300 commercial aircraft from all major aircraft manufacturers. CIT Aerospace, a unit of CIT's Capital Finance operating group offers customized leasing and financing packages for new and used aircraft with a special focus on operating leases for commercial airlines worldwide. It is a business unit of Capital Finance, one of six operating groups of The CIT Group, Inc. (NYSE: CIT; TSE: CIT.U).

CIT is a leading, global source of financing and leasing capital, and an advisor for companies in a variety of diverse industries. Managing more than $50 billion in managed assets across a diversified portfolio, CIT is the trusted financial engine empowering many of today's industry leaders and emerging businesses, offering vendor, equipment, commercial, factoring, consumer and structured financing capabilities. Founded in 1908, CIT operates extensively in the United States and Canada with strategic locations in Europe, Latin and South America, and the Pacific Rim. For more information on CIT, visit the Web site at www.cit.com.