Vector Announces $45 Million Equity Financing

    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/

    TSX: RNO
    

TORONTO, Sept. 29 /CNW/ - Vector Aerospace Corporation ("Vector" TSX: RNO) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. and Dundee Securities Corporation, and including CIBC, Scotia Capital Inc. and Versant Partners Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase from Vector and sell to the public an aggregate of 7,100,000 common shares (the "Shares") at a price of $6.35 per Share for gross proceeds of approximately $45 million (the "Offering"). Vector has also granted the Underwriters a 15% over-allotment option to purchase up to an additional 1,065,000 Shares, exercisable in whole or in part for a period of 30 days from closing of the Offering to cover over-allotments.

Vector intends to use the net proceeds of the Offering for the repayment of debt and for general corporate purposes.

Closing of the Offering is expected to occur on or about October 20, 2009. The Offering is subject to normal regulatory approvals, including approval of the TSX.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

About Vector

Vector Aerospace Corporation is an independent provider of aviation repairs and overhaul services. Through facilities in Canada, the United States, the United Kingdom and Africa, Vector provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. It also provides information technology solutions to an international customer base. The Company has approximately 2,500 employees.

This news release contains certain information that may constitute forward looking information within the meaning of applicable securities laws. These statements are based on current expectation, related to the markets in which Vector operates, its financial condition and its general business. By their very nature, forward-looking statements involve inherent risks and uncertainties that the expectations will not be achieved. Indeed, the forward-looking statements herein, including, without limitation, anticipated future growth and earnings and licence term, may differ materially from actual results or events. While Vector considers the assumptions on which these statements are made to be reasonable, based on information currently available to it, they may prove to be incorrect and readers are cautioned, therefore, not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from those expressed in such forward-looking statements.

These factors include, without limitation, global and local political and economic factors and future demand for Vector's services. Readers should also refer to Vector's continuous disclosure materials filed with Canadian Securities Regulatory Authorities for additional information with respect to certain of these risk factors. A discussion of risk factors is contained in Vector's 2008 Annual Report which is available on Vector's website and on SEDAR. Readers should not place undue importance on forward looking information and should not rely upon this information as of any other date. While Vector may elect to, it is under no obligation and does not undertake to update or revise this information at any particular time, except as required by law.

SOURCE VECTOR AEROSPACE CORPORATION

For further information: For further information: Declan O'Shea, President and CEO, Vector Aerospace Corporation, (416) 640-2115; Randal L. Levine, Senior Vice-President and Chief Financial Officer, Vector Aerospace Corporation, (416) 640-2120; www.vectoraerospace.com

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VECTOR AEROSPACE CORPORATION

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