AeroMechanical Services Ltd. Announces Increase In Over-allotment Option Pursuant to Proposed Bought Deal Private Placement



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S./

    CALGARY, March 6 /CNW/ - AeroMechanical Services Limited (TSXV:AMA) today
announced that it has increased the size of over-allotment option pursuant to
the previously announced bought deal private placement.
    On February 28, 2008, AMA announced that it had entered into an agreement
with Research Capital Corporation (the "Underwriter"), whereby the Underwriter
will purchase, on a bought deal private placement basis, 3,000,000 Units (the
"Units") of AeroMechanical at a price of $1.00 per Unit (the "Offering"). Each
Unit shall be comprised of one common share (the "Common Shares") and half of
one common share purchase warrant (the "Purchase Warrants"). Each whole
Purchase Warrant shall be exercisable into one Common Share at an exercise
price of $1.30 for 24 months following the Closing. The gross proceeds of the
offering will be $3,000,000. The Underwriter shall have the option (the
"Underwriter's Option") to increase the size of the Offering by up to
$1,000,000 in Units by giving written notice of the exercise of the
Underwriter's Option to the Company at any time up to 48 hours before Closing.
    AMA and the Underwriter have agreed to increase the Underwriter's Option
by $500,000 such that the Underwriter shall have the option to increase the
size of the Offering by up to $1,500,000 in Units by giving written notice of
the exercise of the Underwriter's Option to the Company at any time up to 48
hours before Closing.
    The Units will be offered by way of private placement exemptions from
prospectus requirements in such provinces of Canada as the Underwriter may
designate.
    The Offering is scheduled to close on or about the week of March 10, 2008
and is subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the TSX Venture
Exchange.
    In consideration for its services, the Underwriter will receive a cash
commission of 8% and broker warrants equal to 7% of the gross proceeds of the
Offering.
    The proceeds received by the Company from the sale of the Units will be
used to fund its working capital needs and for general corporate purposes.
    The securities offered have not been registered under the U.S. Securities
Act of 1933, as amended, or any state securities laws, and may not be offered
or sold in the United States absent registration or an exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.

    ABOUT AEROMECHANICAL SERVICES LIMITED

    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.

    Cautions Regarding Forward-Looking Statements

    Forward-looking statements (often, but not always, identified by the use
of words such as "expect", "may", "could", "anticipate" or "will" and similar
expressions) may describe expectations, opinions or guidance that are not
statements of fact. Forward-looking statements are based upon the opinions,
expectations and estimates of management of AeroMechanical as at the date the
statements are made and are subject to a variety of known and unknown risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
statements. Those factors include, but are not limited to risks, uncertainties
and other factors that are beyond the control of AeroMechanical, risks
associated with the mining industry, commodity prices and exchange rate
changes, operational risks associated with exploration, development and
production operations, delays or changes in plans, risks associated with the
uncertainty of reserve estimates, health and safety risks and the uncertainty
of estimates and projections of production, costs and expenses. In light of
the risks and uncertainties associated with forward-looking statements,
readers are cautioned not to place undue reliance upon forward-looking
information. Assumptions relating to certain forward-looking information
contained in this press release are set out herein. Although AeroMechanical
believes that the expectations reflected in the forward-looking statements set
out in this press release or incorporated herein by reference are reasonable,
it can give no assurance that such expectations will prove to have been
correct. The forward-looking statements of AeroMechanical contained in this
press release, or incorporated herein by reference, are expressly qualified,
in their entirety, by this cautionary statement.

    %SEDAR: 00016486E




For further information:

For further information: 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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