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AeroMechanical Services Signs AFIRS 228 Contract with Long Time Customer

07/10/2011

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AFIRS 228 Units to be installed on Boeing 777 Aircraft

Calgary, Alberta – October 7, 2011 — AeroMechanical Services Ltd. (TSX-V: AMA) (the “Company” or “AMA”) has signed a contract with an existing customer to install AMA’s next generation product, the Automated Flight Information Reporting System (“AFIRSTM“) 228 onboard Boeing 777-200 aircraft.

The contract requires AMA to install the AFIRS 228 on two Boeing 777-200 aircraft. The established carrier based in the United States uses the two aircraft for international and inter-continental routes. The customer will use the full suite of AFIRS features including engine trending, airframe and engine exceedance reporting, Out, Off, On and In times, as well as real-time flight following and 24/7 connectivity between the aircraft and operations through the Iridium satellite communications system. The system has no gaps in coverage, which allows the customer to fly polar routes with full communications ability, and it assures that all messages are delivered to the airline in real time to maximize safety, and improve operations and maintenance.

“We are pleased to see interest in the new generation of AFIRS from current customers who use the AFIRS 220,” said Bill Tempany, CEO of AMA. “The Boeing 777 is equipped with leading technology and the AFIRS 228 will enhance the aircraft’s capabilities and the information the customer can retrieve off the aircraft.”

The agreement for the AFIRS 228 equipment and services over the five-year contract term is valued at approximately US$362,000, excluding optional services. A provisions only Supplemental Type Certificate for the AFIRS 228 from Transport Canada has been received and the Company is waiting for validation from the Federal Aviation Administration before installs begin in the first quarter of 2012.

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. Fulfilment 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

AeroMechanical Services Ltd., under the brand name FLYHTTM, provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry.  The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real time.  If an aircraft encounters an emergency, AMA’s triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real time.  The company has been publicly traded on the TSX Venture Exchange since 2003 under the trading symbol AMA.

AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of AeroMechanical Services Ltd.

Contact Information

AeroMechanical Services Ltd.
Thomas R. French, CGA
VP Finance and CFO
403-291-7427
tfrench@flyht.com

Barnes Communications Inc.
Colin Languedoc
Senior Consultant
416-367-5000 ext. 225
clanguedoc@barnesir.com 

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