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PR Newswire
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Avcorp announces first successful flights

VANCOUVER, Dec. 19, 2012 /PRNewswire/ - Avcorp Industries Inc. (the "Company" or "Avcorp") is pleased to announce that the first, two very successful flights of an F-35 'Carrier Variant (CV)' with Avcorp-built Out- Board Wing (OBW) assemblies took place at Lockheed Martin's facility in Fort Worth, Texas on 30 November and 05 December 2012. Of particular note is that a Canadian and former CF-18 pilot, Billie Flynn, was at the controls on the second flight.

"Avcorp is very pleased to see these major milestones achieved," said Mark Van Rooij, President & CEO of Avcorp. "This marks the successful culmination of a rigorous New Product Introduction (NPI) Program which included the transfer of significant technological advancements from both our Customer, BAE Systems and from the Prime Contractor, Lockheed Martin."

Regarding the first Flight of CF-05, Alistair Aitken, Project Manager - CV OBW International Programmes at BAE SYSTEMS stated: "Recognizing the hard work and the level of effort from all concerned on the OBW program I am sure I speak for everyone when I say it is very satisfying to see the end product in service."

CF-05's initial flights were, in fact, so successful it has been ferried to the US Navy's Flight Test Center at Patuxent River, Maryland ('PAX River'), arriving there on 11 December 2012, to be integrated into the F-35 Flight Test Program which has already seen all three aircraft variants complete over 2,000 flights and over 16,000 Test Points.

About the Products

Avcorp builds, integrates and tests the complex OBW assemblies which are comprised of Titanium, Aluminum and Composite structural sub-assembles as well as numerous components for a variety of hydraulic and avionic sub-systems.

About Avcorp

Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower-cost, light weight, strong, reliable structures. Our Burlingtonlocation also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX: AVP).

(signed)

MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER

Forward-Looking Statements

This management discussion and analysis should be read in conjunction with the Company's audited financial statements. Certain statements in this report and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the ability of the Company to renegotiate its debt agreements under which it is in default; (b) the extent to which the Company is able to achieve savings from its restructuring plans; (c) uncertainty in estimating the amount and timing of restructuring charges and related costs; (d) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (e) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (f) government funding and program approvals affecting products being developed or sold under government programs; (g) cost and delivery performance under various program and development contracts; (h) the adequacy of cost estimates for various customer care programs including servicing warranties; (i) the ability to control costs and successful implementation of various cost reduction programs; (j) the timing of certifications of new aircraft products; (k) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (l) changes in aircraft delivery schedules or cancellation of orders; (m) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (n) the availability and cost of insurance; (o) the Company's ability to maintain portfolio credit quality; (p) the Company's access to debt financing at competitive rates; and (q) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.


SOURCE Avcorp Industries Inc.

© 2012 PR Newswire
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