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Thu, Jan 19, 2012

New Canadian Customer Signed By AeroMechanical Services

New Client Will Be The Company's Largest

AeroMechanical Services (AMA) has signed a contract with an airline that will become the Company's largest Canadian customer for seven Automated Flight Information Reporting System (AFIRS) 220 and 12 of the next generation AFIRS 228B, for a total of 19 aircraft. The contract requires AMA to install AFIRS 220 and AFIRS 228B on Boeing 737-200, 767-200F and ATR-42/72 aircraft. The airline has been in business for over half a century and operates in major Canadian centres and remote northern regions. The airline also operates charter flights within the country.

"We are extremely pleased to welcome this Canadian operator as a new customer," commented Matt Bradley, VP of Business Development at AMA. "With this addition, our Canadian customer list is now at eight airlines. The airline has indicated to us that our technology will add significant value to their operation and reinforce their commitment to safety and efficiency."

AFIRS will enable real-time flight following and 24/7 connectivity between the aircraft and operations through the Iridium satellite communications system. The airline will also utilize AMA's other services including engine trending, airframe and engine exceedances, and Out, Off, On and In times. The airline will use the data AFIRS provides to operate its Flight Operations Quality Assurance (FOQA) program, a type of safety monitoring program.

AMA will provide equipment and services to the airline over a five-year contract. Installations are scheduled to begin within the year and be completed over the next 18 months. If AMA completes installation on all contracted aircraft and provides recurring service for the full term of the agreement, gross revenue to AMA will be approximately $1,945,260 USD, excluding optional services. The installations for the Boeing 767-200F and ATR-42/72 will commence upon AMA receiving all necessary certifications and no issues are anticipated for the completion of the certifications.

FMI: www.flyht.com

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