CALGARY, March 6 - AeroMechanical Services Ltd. ("AMA or the Company") held a webcast on March 05, 2008 at 7:00 PM Eastern Time to update on the Company's initiatives in China.
The following information was discussed in the webcast.
In early 2007, a policy change occurred within the Chinese government whereby a specific bandwidth approval would have to be issued before AMA could provide its service to China. In July 2007, the Company was informed that the installations could not commence as this bandwidth approval had not yet been issued. The Company announced on December 5, 2007 that it had received a purchase order from the Aircraft Data Communications Company ("ADCC") for the first 10 afirs(TM) units. At the time of the press release, the Company indicated that one more bandwidth approval was still required. AMA expected that approval early in 2008.
However, the bandwidth approval had shifted to a new regulatory body of the Chinese government which resulted in having to undergo a newly defined testing requirement. This new regulatory body requires testing both in the air and on the ground in order to ensure there is no interference between the bandwidth used by afirs(TM) and the current Chinese satellite system.
The new regulatory body of the Chinese government has requested that only a few installs occur and be tested in the air and on the ground before it will release the remaining bandwidth approval. AMA does not expect any technical interference with the current Chinese satellite system. A similar test by China Spacecom, the original regulatory body, was successful so expectations are high for a successful test.
The ADCC has indicated to AMA that this testing should be completed by the end of June 2008. Assuming the bandwidth approval is received by then, AMA anticipates receiving payments in July 2008. Installations and activation of its products and services are expected near the end of July or beginning of August 2008.
During the webcast, Mr. Zei, COO of ADCC made the following additional points:
- AMA has made technology available for tests and assisted in moving the process forward in China.
- The four contracted Chinese airlines have requested the Original Equipment Manufacturers (OEM's) to install afirs(TM) and Civil Aviation Authority of China ("CAAC") will formally ask OEM's such as Boeing and Airbus to do factory installs of afirs(TM) technologies once approvals are received.
- Verified Supplemental Type Certificate ("VSTC") approvals of A320 and 757 are scheduled to be completed in May 2008.
Mr. Zei further indicated that "We are confident that afirs(TM) will obtain the necessary approval, clearing the way for the installation of afirs(TM) on Chinese commercial aircraft."
A recorded version of the webcast will be available from Wednesday, March 5 at 11:00 PM Eastern Standard Time until Wednesday, March 12 at 11:59 PM Eastern Standard Time. To listen to the recorded version of the webcast call one of the two numbers listed bellow then enter the pass code followed by the "No." key.
416-640-1917 Pass code 21265096 followed by the number sign (Toronto)
877-289-8525 Pass code 21265096 followed by the number sign (Toll-Free)
The full power point presentation is available on AMA's website at www.amscanada.com.
About AeroMechanical Services Ltd.
AeroMechanical Services Ltd. provides proprietary technological solutions and services designed to reduce costs and improve efficiencies in the airline industry. The company 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. Due to the competitive nature of the marketplace AMA is maintaining its position to withhold the airline's name and specific location. For further clarification of potential contract values please refer to AMA quarterly reports.
FLYHT, afirs, UpTime, and AeroQ 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.
Contacts
on AMA contact: Tom French
CFO
AeroMechanical Services Ltd
(403) 291-7427
tfrench@amscanada.com
www.amscanada.com
Bob Beaty
The Howard Group Inc.
Toll Free: 1-888-221-0915
Info@howardgroupinc.com
www.howardgroupinc.com