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NEWS - AEROMECHANICAL SERVICES LTD. ANNOUNCES RESPONSE TO COUNTERCLAIM

Posted by: AGORACOM on November 07, 2007 09:49AM

Calgary, Alberta CANADA, November 07, 2007 - AeroMechanical Services Ltd. (AMA - TSX Venture), ("AMS or the Corporation") announced today that it has filed a Statement of Defence against the Counterclaim brought against it by Star Navigation (SNA on TSX-V), Viraf Kapadia and Peter Verbeek. We will be seeking security for costs from the Ontario Superior Court of Justice as we see the Counterclaim as being frivolous and vexatious.

AMS has counterclaimed against Star. We are claiming damages of $15,000,000 for interference with legally binding contracts of AMS, disruption of business, an attack on our reputation and costs on a substantial indemnity scale. As an owner of the patent which is the center of the controversy and probable benefactor of any outcome, we have also named Viraf Kapadia as a defendant in our Counterclaim.

In the US infringement case, Star is alleging that AMS is infringing Star's 852 patent. Although the case is in its early stages, AMS' position is that the case is without basis and that there is no merit to the infringement allegations. AMS will defend the litigation vigorously and is prepared to see it to a conclusion. AMS is prepared to take any legal action against Star as is necessary to defend itself and its products.

AMS is a technology leader in airliner performance monitoring systems, and has been rewarded with patents to cover its technology. AMS takes intellectual property matters very seriously and respects the intellectual property of third parties. AMS is disappointed that Star has chosen to attempt to compete with AMS via press release, baseless litigation, and U.S. Patent Office procedure - rather than in the marketplace via better products and services.

About AeroMechanical Services Ltd.

AeroMechanical Services Ltd. provides proprietary technologies and services designed to reduce costs and improve efficiencies in the airline industry. The Corporation has successfully commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology afirs(tm) UpTime(tm) allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time.

For more information on AMS contact:

Tom French, CFO
AeroMechanical Services Ltd
(403) 291-7427
tfrench@amscanada.com

Bob Beaty
The Howard Group Inc.
Toll Free: 1-888-221-0915
Info@howardgroupinc.com
www.howardgroupinc.com

afirs, UpTime, AeroQ and Smart Box are Trade Marks of AeroMechanical Services Ltd.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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