AeroMechanical Services Ltd. Announces Commencement of Shipments to China



    
    AeroMechanical Services Ltd.                  TSX-V Trading Symbol "AMA"
    A Tier 2 Industrial Issuer
    

    CALGARY, Aug. 27 /CNW/ - AeroMechanical Services Ltd. ("AMA") is pleased
to announce it has received a purchase order from Sky Blue Technology
Development Co., Ltd. ("Sky Blue") for kits to outfit two (2) Boeing 767
aircraft with AMA's patented afirs(TM) UpTime (TM) system, gross proceeds to
AMA being $48,000 (funds to be wired within 10 business days and prior to
shipment). AMA expects the number of afirs(TM) UpTime (TM) system kits
required by Sky Blue to increase throughout 2008. Sky Blue's responsibilities
include obtaining the required regulatory approvals and the sales and
distribution of AMA's products to customers in China. There are currently five
(5) airlines in China committed to installing AMA's solution on their aircraft
under the Sky Blue agreements.
    AMA also is pleased to announce that the Validation of Supplement Type
Certificate ("VSTC") has been received from the Civil Aviation Authority of
China ("CAAC") for the Boeing 767 aircraft to meet the requirements to have
these afirs(TM) UpTime (TM) system kits installed in China. In AMA's March 6th
press release, it was stated that AMA would receive approval for its
technologies in June and AMA previously thought that installations would
commence in July of 2008. The shipments were delayed upon the request of
certain officials in China to reduce confusion with the hosting of the
Olympics and Sky Blue's customers were asked to delay any changes in flight
paths, schedules or communications devices until after the Olympics had been
completed.
    Mr. Xei, President of the Aircraft Data Communication Company ("ADCC")
stated "the process of getting the products certified for the Chinese market
has been long and we are pleased that we have achieved our goal and are now
ready to help all airlines in China improve their voice and data
communications capabilities and assist in the growth of our vibrant airline
economy. We thank AMA for their patience and help in getting to this milestone
point in our relationship."
    Mr. Li (Michael) Fang, Vice President of AMA stated "we have worked hard
for the past 3 years to make this vision a reality. We are looking forward to
commencing shipment and installation on our contract. These are exciting times
for China and AMA is proud to be part of the growth of this fantastic
country."
    AMA had previously entered into a contract with Sky Blue in the fall of
2006 whereby AMA was contracted to provide AMA's patented afirs(TM) UpTime
(TM) system to Sky Blue's customers (currently 515 aircraft), pending the
necessary approvals.
    The terms of the contract are as follows: the contract is for an 8-year
term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on
up to 515 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 515
aircraft and provide service for the full term of the agreement, the gross
revenues to AMA under this agreement would be approximately $35,000,000 to the
end of 2010 and annually approximately $15 million per year for the remainder
of the contract term.
    AMA plans to ship this product for installation and activation in
September 2008. AMA has received the necessary VSTCs for this order as well as
all Boeing 737 aircraft.

    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 patented and 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




For further information:

For further information: on AMA contact: Tom French, CFO, AeroMechanical
Services Ltd, (403) 291-7427, tfrench@amscanada.com; Bob Beaty, The Howard
Group Inc., Toll Free: 1-888-221-0915, Info@howardgroupinc.com,
www.howardgroupinc.com

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AEROMECHANICAL SERVICES LTD.

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