Aviation General Announces Default By Tiger Aircraft

The deal to bring Commander and Tiger aircraft models together under one roof has failed.

Aviation General, Incorporated has been informed that Tiger Aircraft, LLC and/or its affiliates, members, and investors, which include a subsidiary of Teleflex Incorporated and various Taiwanese investors ("Tiger"), will not honor their commitment(s) pursuant to the executed Stock Purchase Agreement and court confirmed financial reorganization Plan for Commander Aircraft Company, Aviation General's wholly owned subsidiary.

Commander tells ANN that, "Tiger offered no reason, explanation, or justification for their default. In fact, Tiger had repeatedly assured interested parties, including the Federal Aviation Administration, the aviation media, our past and present employees, our shareholders, and our executives that they intended to honor their commitment(s). Aviation General and Commander fulfilled all prerequisites required for the closing of this investment transaction, including, respectively, a long and costly shareholder approval process and the attainment of a court confirmed financial reorganization Plan that would have allowed Commander to exit from Chapter 11.

Based on our Agreement with Tiger and their continued reassurances and public pronouncements of their commitment(s) during the past year, we have not sought other investors. Consequently, our company's future is uncertain, and new aircraft production will continue to be suspended indefinitely. We plan to continue to conduct our aircraft sales, brokerage, service, and refurbishment business. We also will seek qualified investors and/or merger opportunities with parties wishing to be part of a new corporate ownership structure."

FMI: www.commanderair.com, www.tigeraircraft.com