CALGARY, March 26 - AeroMechanical Services Ltd. ("AMA") is pleased to announce we have received an additional contract from the North American carrier whose signed agreement was announced in the February 19, 2008 press releases. The new agreement is to outfit nine additional aircraft with AMA's patented afirs(TM) UpTime(TM) system. This contract is the third and final contract previously announced in a press release dated November 14th, 2007.
The terms of the contract are as follows: the contract is for a 5-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on nine aircraft (with the possibility to increase it as the size of the carrier's fleet of aircraft increases). If AMA is able to install on both aircraft and provide service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately $ 949,500. Initially, it is intended that installation on two aircraft would begin on or about October 2008, a third installation begin on or about November 2008 and the remaining will be scheduled for after November 2008.
AMA is in the process of acquiring the necessary Federal Aviation Administration ("FAA") Supplement Type Certificate ("STC") approval to provide the services to this customer. AMA anticipates receiving a FAA provisionary installation approval prior to October 2008. Following the installation AMA will be required to perform a test flight. Upon a successful test flight, AMA anticipates receiving the complete STC approval on or about January 2009. The following timeline is subject to change due to the FAA schedule.
This addition increases the total aircraft under contract with AMA to 699 from 29 carriers.
This disclosure as it relates to these agreements is subject to the following disclaimer:
When a contract is initially signed, the intended number of aircraft, pricing and potential installation schedules is agreed to by the parties. The actual installation schedules as well as the number and types of aircraft are often revised throughout the term of the agreement as the airline realigns its fleet of aircraft with its business requirements. Delays in installations can and do occur which can affect the total value of the contracts such that the revenues noted above may not be fully achieved. Fulfillment of the contract terms may also be affected if there are any changes to government statutes, regulations or rules of the applicable governing bodies. The contract terms and values disclosed herein are based on the original information available to AMA upon execution of the contract and are subject to change. For the actual revenue earned, please see AMA's financial statements including its revenue recognition policy disclosed within the notes to the Audited Annual Financial Statements.
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.
afirs, UpTime, FLYHT 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 AMS contact: Tom French
CGA
VP Finance & 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
