Automated Flight Information Reporting System Enters Commercial Service in China



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

    SHANGHAI, China, and CALGARY, Feb. 19 /CNW/ - Shanghai Airlines ("SAL")
has reported to AMA that its second afirs(TM)-equipped Boeing 767 has
completed a successful entry into service on February 4, 2009 The maiden
flight of the first system was from Shanghai to Saipan on December 27th,2008,
and afirs(TM) system performed flawlessly. The second installation was
completed at the Boeing China Modification Facility in Shanghai. Mr. Ding Xing
Guo, Vice President of Flight Operations for SAL stated, "It is very important
that our crews have continuous voice contact with our operations center to
support each flight. The afirs system provides that continuous contact with a
quality and clarity of the voice communications that is crystal clear". Mr.
Xie Jin Yi, Director of the Operations Control Center ("OCC"), representing
the Shanghai OCC dispatchers added, "With afirs, our dispatchers now have the
ability to contact and update our pilots at any time no matter where the
aircraft is at the moment. This is a valuable improvement in our operational
control and flight watch capabilities".
    In a related development, AMA announced that Civil Aviation Authority of
China ("CAAC") has completed its review of the Verified Supplemental Type
Certificates ("VSTCs") for the Boeing 757, which is operated by China Eastern
Airlines, Air China, China Southern Airlines and other airlines in China.
    The afirs(TM) installed on SAL aircraft are the first to enter revenue
service under the agreement signed in 2006 between Sky Blue Technology
Development Co., Ltd. ("Sky Blue") and AMA, whereby AMA has been contracted to
provide AMA's patented afirs(TM) UpTime(TM) system to Sky Blue's customers
(currently 515 aircraft), pending the necessary approvals. In the interim,
VSTC approvals have been obtained by AMA from the CAAC for all Boeing 737
types and the 767 and Airbus A319, 320 and 321, with others pending. The VSTC
is a mandatory requirement for installation of modifications on Chinese
registered aircraft. The terms of the contract, as noted in our previous press
release dated Aug 27, 2008 were 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 also confirms that another current customer who provides services to
the United Nations in Africa has added 2 additional aircraft to their fleet
and extended their contract with AMA whereby AMA will provide AMA's patented
afirs(TM) UpTime(TM) solution on these 2 additional aircraft. The total value
of this extension for the 2 aircraft is in excess of $200,000 if the
implementations occur on time and run for the full term of the contract.

    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.

    
    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 AMS contact: Tom French, CGA, VP Finance &
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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