Case Had Been Filed In 2010

Avcorp Industries Inc. said Thursday that it has ceased any and all litigation against Bombardier Inc. which was commenced in 2010 by the Company in the Superior Court of Quebec, in connection with the termination by Bombardier of production work relating to the CRJ700 aircraft program.

The Company said in a news release that they had agreed agreed that each will be responsible for their respective costs and Bombardier has not paid any consideration to Avcorp to dismiss the case. Avcorp is actively pursuing participation in Bombardier's supply chain for several of Bombardier's programs.

According to the online site The Examiner, Avcorp was attempting to recoup more than $18 million it said it was owed when Bombardier cancelled a contract with the company connected with the CRJ700 program in 2007.

Avcorp currently produces components for the Bombardier Challenger 605 and Challenger 850 business jets as well as composite floorboards for the CRJ, Q400, and Learjet programs. The Company looks forward to continuing its valued relationship as a supplier to Bombardier, the leading Canadian aerospace manufacturer.

Avcorp designs and builds major airframe structures aircraft companies including BAE Systems, Boeing, and Bombardier. The company employs over 400 skilled workers at facilities in Delta, BC, and Burlington, ON, in Canada.

FMI: www.avcorp.com, www.bombardier.com