AeroMechanical Services Ltd. Announces afirs UpTime Contract with US-based Charter Operator

    
    AeroMechanical Services Ltd.                   TSX-V Trading Symbol "AMA"
    A Tier 2 Industrial Issuer
    

CALGARY, Aug. 28 /CNW/ - AeroMechanical Services Ltd. ("AMA") is pleased to announce that we have received a contract from a US-based charter operator for afirs(TM) UpTime(TM).

The scope of the contract includes gap-free real time global flight following and cockpit voice and text services anywhere in the world, operational data reporting, on board exceedance and discrepancy reporting in real time, with the option of adding AMA's UpTime Fuel Management Information and emergency in the future without any additional airborne hardware. Provisions for adding electronic flight bags will be included.

The terms of the contract are as follows: the contract is for an initial 5-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on a fleet of Boeing 767 aircraft (with the possibility to increase the order as the size of the operator's fleet increases). If AMA is able to install on the all contracted aircraft and provide recurring service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately USD$804,000, excluding optional services.

This disclosure as it relates to this agreement 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 aviation 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), and FIRST(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.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

Contacts

on AMA 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