ExelTech Aerospace Announces Financial Results for Year Ended March 31, 2008



    Revenues increased 9% to $54.4 million

    MONTREAL, July 3 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech
Aerospace", "ExelTech" or the "Company"), (TSX-V: XLT), Canada's largest
publicly-listed commercial aircraft maintenance, repair and overhaul
organization, announced today its financial results for the fiscal year ended
March 31, 2008, posting a net loss of $1.8 million.
    The Company reported revenues of $54.4 million for fiscal 2008 compared
to $49.8 million in fiscal 2007, a 9% increase. It also reported an operating
profit (earnings before amortization and financial expenses) of $0.5 million,
compared to $4.8 million in the prior year. The net loss for fiscal 2008 is
$1.8 million, compared to net earnings of $1.3 million in fiscal 2007.
    "This has been a challenging year for us," stated Derek Nice, Chairman &
CEO of ExelTech Aerospace. "Our results reflect the impact of the rapid
increase in the strength of the Canadian dollar, which has a big impact on our
margins because we sell our services in US dollars, but incur most of our
costs here in Canada."
    The Company has responded by accelerating its process enhancement and
productivity initiatives. "We expect to see these initiatives flow through to
the bottom line," continued Mr. Nice. "I am confident that we will
successfully execute on our business plan with a return to profitability and
continued growth and geographic expansion."
    This month ExelTech takes possession of its new purpose-built heavy
maintenance facility at Montreal's Pierre Elliott Trudeau International
Airport. This $19 million investment is a cornerstone of the Company's
business plan, offering greater efficiencies, economies of scale and increased
capacity.
    In fiscal 2008, ExelTech Aerospace provided major maintenance and
overnight line maintenance services to 62 different customers from
12 countries, completing 139 heavy maintenance checks compared with 125 checks
the previous year. During the year the Company announced more than $67 million
of new long-term contracts from customers in Canada, the US, Mexico and
Venezuela, and in April 2008 announced a new $8 million contract with Embraer
ERJ145 maintenance launch customer Republic Airways Group..
    A complete copy of the financial statements of ExelTech Aerospace and of
the related management's discussion and analysis of financial statements are
available on SEDAR, at www.sedar.com.
    The annual meeting of the shareholders of ExelTech Aerospace will be held
at 2:00 p.m. on August 26, 2008 at its brand new facilities located at
1200 Pitfield Boulevard, Ville Saint-Laurent, Québec H4S 0A1.

    About ExelTech Aerospace

    The third-largest commercial airframe Maintenance, Repair, and overhaul
(MRO) vendor in Canada, ExelTech Aerospace is listed on the TSX Venture
Exchange and trades under the symbol XLT. The company holds Transport Canada,
US Federal Aviation Administration (FAA) and European Aviation Safety Agency
(EASA) approvals to maintain a range of aircraft and associated structures,
components and systems. Aircraft models serviced by ExelTech Aerospace include
Embraer ERJ and Bombardier CRJ regional jets and ATR-42 and 72, Bombardier
Dash-8 and Saab 340 regional turboprops.
    With 230,000 square feet of hangar, shop and office space in three
facilities at Montreal and Quebec City, and with marketing offices in the US
and Europe, ExelTech Aerospace provides maintenance repair and overhaul
services to airlines in Canada, the US and 24 other countries around the
world.
    In mid-July this year, ExelTech will move in a purpose-built
140,000 sq ft state-of-the-art regional jet and turboprop maintenance facility
at Montreal's Pierre Elliott Trudeau International Airport.
    To learn more about ExelTech Aerospace Inc. (TSX-V: XLT), please visit
our website at www.exeltech-aerospace.com.

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy of this release.


    
    SELECTED FINANCIAL INFORMATION OF EXELTECH AEROSPACE INC.

    Consolidated Statements of Operations and
    Comprehensive (Loss) Income
    years ended March 31                                  2008          2007
                                                                     (Note 1)

    Revenue                                       $ 54,353,120  $ 49,800,485
    Cost of sales                                   43,872,225    35,234,961
    -------------------------------------------------------------------------

                                                    10,480,895    14,565,524
    Operating expenses                              10,020,826     9,809,151
    -------------------------------------------------------------------------

    Earnings before the following                      460,069     4,756,373
    Amortization                                     1,246,419     1,251,569
    Financial expenses                               1,016,482     1,232,238
    -------------------------------------------------------------------------

    (Loss) earnings before income taxes             (1,802,832)    2,272,566
    -------------------------------------------------------------------------

    Net income taxes (recovery)                        (26,108)    1,007,921
    -------------------------------------------------------------------------
    Net (loss) earnings and comprehensive
     (loss) income                                  (1,776,724)    1,264,645
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net (loss) earnings per share basic and
     diluted                                      $      (0.01) $       0.01

    Note 1: The 2007 figures have been restated due to a change in accounting
    ------  policy applied retrospectively. The financial impact on the 2007
            statements above was an increase in cost of sales of $68,012, a
            decrease in income taxes of $18,295 and a decrease in net income
            and comprehensive income of $49,717.


    Consolidated Balance Sheet
    as at March 31  2008
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    ASSETS
    Current assets                                  37,433,052
    Capital assets                                  15,439,687
    Intangible assets                                  294,836
    Future income taxes                              3,812,655
    Goodwill                                        13,241,506
    -------------------------------------------------------------------------

    TOTAL ASSETS                                  $ 70,221,736
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current liabilities                             18,788,155
    Long-term debt including liability portion
     of debentures                                  18,339,121
    Other                                              457,083
    SHAREHOLDERS' EQUITY                            32,637,377
    -------------------------------------------------------------------------

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $ 70,221,736
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00020968EF




For further information:

For further information: Derek Nice, Chairman & CEO, ExelTech Aerospace
Inc., (514) 631-3884, dnice@exeltech-aerospace.com

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EXELTECH AEROSPACE INC.

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