"Will Decide On The Next Steps To Be Taken"

Pemco Aviation Group has issued some comments on their unsuccessful bid to be selected as the recipient of the new KC-135 Programmed Depot Maintenance (PDM) contract from the United States Air Force. The contract, which has a 5-year base term with 5 additional one-year options, was awarded on September 10, 2007, with an effective date of October 1, 2007.

Ron Aramini, President and Chief Executive Officer, states, “We are very disappointed that the company was not chosen for the KC-135 contract. We have requested a debriefing from the Air Force to try to understand the reasons for the award decision. Depending upon the information provided by the Air Force, and upon our assessment of the entire situation, we will decide on the next steps to be taken in connection with the KC-135 PDM contract. In addition, we will move forward with other programs with the Air Force and Navy. We will be aggressively pursuing new programs which we feel will benefit from our expertise in maintenance and modification and our unique facility capabilities. We would like to extend our appreciation to the local, state and federal officials who supported Pemco through this difficult and protracted effort.”

Pemco Aviation Group, Inc., with executive offices in Birmingham, Alabama, and facilities in Alabama, and California, performs maintenance and modification of aircraft for the U.S. Government and foreign and domestic commercial customers. The company also provides aircraft parts and support and engineering services and full service overhaul and repair for a wide range of aircraft. Pemco Aviation Group also develops and manufactures rocket vehicles and control systems, and precision components for the aviation industry.

FMI: www.pemcoaviationgroup.com