MORE 4Q NEWSAeroMechanical Services Ltd. Announces Milestone Contract with Middle Eastern Military Organization
CALGARY, Nov. 25, 2008 (Canada NewsWire via COMTEX News Network) --
<< AeroMechanical Services Ltd. TSX-V Trading Symbol "AMA" A Tier 2 Industrial Issuer >>
AeroMechanical Services Ltd. ("AMA") is pleased to announce that we have received the first contract from a leading Canadian electronics provider who is representing a Middle Eastern military organization to outfit their Lockheed Martin (LMCO) C-130H Hercules aircraft with AMA's patented afirs(TM) UpTime(TM) system, as part of an upgrade program.
"The C-130 Hercules is the global airborne workhorse for delivering people and supplies to the most difficult to reach and dangerous areas in the world, with over 2,000 aircraft built, dating back decades. Our afirs(TM) UpTime(TM) modular system is ideally suited as a C-130 upgrade as it enables crew voice, text, and aircraft data communication anywhere on the globe, heretofore not possible, thus improving operational control, mission effectiveness, maintenance planning, and safety. We hope this contract could be replicated with afirs(TM) being used by many countries around the world who operate the Hercules. There are numerous ongoing and planned upgrade programs in which afirs(TM) could be considered as a high value added improvement to the aircraft," stated Richard Hayden, President of AMA.
The terms of the contract are as follows: the contract is for a 3-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on aircraft (with the possibility to increase it as the size of the carrier's fleet of aircraft increases). If AMA is able to install on all the contracted aircraft and provide recurring service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately $1,365,000. Payments will commence in December 2008.
This addition increases the total aircraft under contract for afirs(TM) installations with AMA to 766 from 33 carriers/operators.
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 airline 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), 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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. >>
%SEDAR: 00016486E
SOURCE: AeroMechanical Services Ltd.
on AMA contact: Tom French, CFO, AeroMechanical Services Ltd, (403) 291-7427, tfrench@amscanada.com, www.amscanada.com; Bob Beaty, The Howard Group Inc., Toll Free: 1-888-221-0915, Info@howardgroupinc.com, www.howardgroupinc.com
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