AeroMechanical Services Ltd. Announces Manufacturing and Military Partnership with Sierra Nevada Corporation

AeroMechanical Services Ltd.            TSX-V Trading Symbol "AMA"
    A Tier 2 Industrial IssuerCALGARY and RENO, Nevada, March 4 /CNW/ - AeroMechanical Services Ltd.
("AMA") today announced that it has reached an agreement with Sierra Nevada
Corporation ("SNC") of Reno, Nevada (www.sncorp.com) under which SNC will
manufacture AMA's afirs(TM) products under license and also market afirs(TM)
UpTime(TM) technology and products to the global military market. Under the
terms of the agreement, SNC will: (i) pay AMA a license fee and a royalty on
all future sales of afirs(TM) to the military segment as consideration for the
manufacturing license and military marketing rights; (ii) SNC will be
contributing funds, personnel and expertise to the design of AMA's future
afirs(TM) airborne technologies; and (iii) share other revenue opportunities
with AMA resulting from SNC's sales of afirs(TM) UpTime products and services
to military organizations. The up front license payments from SNC will allow
AMA to meet its short term working capital requirements, while royalties on
future sales to SNC's military customers will augment AMA's recurring revenues
from our commercial customers.
    AMA will continue to lead sales and service activities in all civil
aviation markets, while military sales outside the United States will be
evaluated on a case-by-case basis with the appropriate company taking the lead
based upon the opportunity.
    Richard Hayden, President of AMA, stated, "We are delighted to partner
with Sierra Nevada Corporation to take our business to a new level, and
especially expand opportunities with airframe manufacturers, major fleet
operators, and the global military community. Sierra Nevada is an innovation
leader in the field of airborne electronics, flight controls, and satellite
communications. SNC is a proven performer for the US and global military
community and brings an extensive customer network, technology capability and
experience base to the relationship. This relationship complements our other
strategic relationships to create a highly capable and responsive global
capability."
    Greg Cox, Corporate Vice President, stated, "SNC is pleased to be able to
partner with AMS to augment its development, manufacturing, and marketing
capabilities. We believe that the afirs(TM) UpTime system can bring high value
to our military customers in terms of operational control, readiness
improvement, maintenance planning, and Operational & Support (O&S) cost
savings. We anticipate that the recently introduced fuel savings capabilities
of AMS' products should be of great interest to military organizations facing
unprecedented demands and cost pressures."

    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. Its fuel management products and services are
assisting aircraft operators in reducing fuel costs and greenhouse gas
emissions.

    About Sierra Nevada Corporation

    Sierra Nevada Corporation (SNC) is known for its rapid, innovative, and
agile technology solutions in electronics, aerospace, avionics, space,
propulsion, micro-satellite, aircraft and communications systems for both the
private and public sectors. Founded in 1963, SNC's seven unique business areas
employ more than 1600 people in 31 different locations in 20 states - all of
whom are dedicated to providing leading-edge solutions to SNC's dynamic
customer base.
    Over its 46 year history, SNC has remained focused on providing its
customers the very best in diversified technologies to meet their needs and
has a strong and proven track record of success. SNC has grown into one of the
Top Woman-Owned Federal Contractors in the United States while maintaining its
reputation for innovation and agility. The company continues to focus its
growth on the commercial sector through internal advancements and outside
acquisitions, including the emerging markets of telemedicine, nanotechnology,
energy and net-centric operations. For more information on SNC visit
www.sncorp.com.afirs, UpTime, FLYHT, FIRST, and aeroQ are Trade Marks of AeroMechanical
    Services Ltd.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.%SEDAR: 00016486E

For further information: on AMA, contact: Tom French, CFO,
AeroMechanical Services Ltd, [phone], [e-mail],
www.amscanada.com; Bob Beaty, The Howard Group Inc., Toll Free:
1-888-221-0915, [e-mail], www.howardgroupinc.com; For more
information on Sierra Nevada Corporation, contact: Charlie Russo, Sierra
Nevada Corporation, [phone] ext 1205, [e-mail],
www.sncorp.com