ExelTech announces an upcoming financing



    
    ExelTech announces the signature of a letter of intent with SGF to
    establish a term loan and an equity position for a total amount of
    $6 million
    

    MONTREAL, Aug. 24 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech" or
the "Company") (TSX-V: XLT), a leading aircraft maintenance, repair and
overhaul provider with operations in Montreal and Quebec City, today announced
the signature of a letter of intent with the Société générale de financement
du Québec (SGF) to establish a term loan and an equity position in Exeltech
for a total amount of $6 million.
    The contemplated term loan would take the form of a $5 million debenture
with 10% annual interest and a right to participate into the Company's
profits. The considered equity investment of SGF would amount to a $1 million
subscription of common shares at a price of $0.035 per share. These funds
would be used to reimburse the $2.3 million debentures coming due November 30,
2009 and for general operating needs. The contemplated closing time should be
by the end of September 2009.
    Final agreement is conditional on the satisfactory completion of a due
diligence from SGF, the absence of material adverse change and certain other
customary conditions.
    "After having successfully renewed our credit facilities with our banker,
this comes as an important part of the plan to reinforce our balance sheet and
be able to sustain the efforts towards achieving our goals of profitable
growth," said Sylvain Duval, president and CEO of Exeltech.
    ExelTech intends to release its financial results for the quarter ended
June 30, 2009 on August 25, 2009.

    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 Corporation holds Transport
Canada, US Federal Aviation Administration (FAA), European Aviation Safety
Agency (EASA) and Bermuda Department of Civil Aviation (BDCA) approvals to
maintain a range of aircraft and associated structures, components and
systems. Aircraft models serviced by ExelTech Aerospace include Embraer ERJ
145 family, EJet 170/190 family and Bombardier CRJ regional jets as well as
ATR-42 and 72, Bombardier Dash-8 and Saab 340 regional turboprops and Boeing
737 narrow bodies. ExelTech is also a member of the SuperJet International
Sukhoi MRO Service Centers Network.
    In the summer of 2008, ExelTech opened a purpose-built 153,000 square
feet (14,200 square meters) state-of-the-art maintenance facility at
Montreal's Pierre Elliott Trudeau International Airport where regional
aircraft are serviced. In additional to heavy maintenance, ExelTech Aerospace
offers a dedicated line maintenance facility servicing domestic and
international customers for Montreal's Trudeau International Airport.
    With 310,000 square feet (28,800 square meters) of hangar, shop and
office space in three facilities at Montreal and Quebec City, and with
marketing offices in the US, ExelTech Aerospace provides maintenance repair
and overhaul services to airlines in Canada, the US and 25 other countries
around the world.
    To learn more about ExelTech Aerospace Inc. (TSX-V: XLT), please visit
our website at www.exeltech-aerospace.com.

    Forward-Looking Statements

    Certain statements made in this news release, including, without
limitation, statements relating to the Corporation's expectations concerning
future revenues and earnings, market conditions and the sufficiency of capital
and liquidity, may constitute forward-looking statements. These
forward-looking statements are subject to risks and uncertainties that may
cause future results to differ materially from those expected. Such risks
include, without limitation, period to period fluctuations of revenue and
operating expenses, technological, competition, environmental hazards,
intellectual property issues, dependence on key personnel, financing and
acquisition capabilities and exposure to foreign currency movements. These
risks and uncertainties are discussed in greater detail in the Risk Factors
section of the Corporation's Management Discussion and Analysis for the year
ended March 31, 2009. Moreover, actual results may differ materially from
expected results if known or unknown risks affect the business or if
information and analysis in this news release turn out to be inaccurate. As a
result, there can be no guarantee that any forward-looking statement will
materialize.
    Management disclaims any intention, and assumes no obligation, to update
any forward-looking statement, even if new information becomes available, as a
result of future events or for any other reason. Readers are urged to consider
these and other such factors carefully, and not place undue emphasis on
ExelTech's forward-looking statements.
    Further information can be found in the disclosure documents filed by
ExelTech with the securities regulatory authorities, available at
www.sedar.com.

    
    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy of this release.
    
    %SEDAR: 00020968EF




For further information:

For further information: Sylvain Duval, President and Chief Executive
Officer, (514) 631-8999 ext. 3884, sduval@exeltech-aerospace.com

Organization Profile

EXELTECH AEROSPACE INC.

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