Avcorp acquires Machining Operation

    -   new acquisition adds CAD$ 2 million EBITDA and CAD$ 11 million in
    -   expands machining capacity and capabilities and adds to customer base
    -   continues strategy to grow core business, as announced with expansion
        of leadership team

    VANCOUVER, March 7 /CNW/ - Avcorp Industries Inc. (TSX."AVP") is pleased
to announce that it has entered into an agreement to acquire all of the shares
of a machining business, which revenues are more than 50% military based.
Annual revenues of business, which has been in operation for 20 years, is
approximately CAD$ 11 million and EBITDA in excess of CAD$ 2 million. The
business operates out of a 30,000 square foot dedicated facility in British
Columbia. Existing management of the machining operation will be retained. The
agreement is subject to completion of due diligence and a definitive agreement
by April 30, 2007, with closing scheduled for May 31, 2007.
    Michael Scholz, Chairman, advises, "The acquisition will allow Avcorp to
expand its capacity, capabilities and client base as it continues to grow its
core business."
    The purchase price of CAD$ 6 million will be payable by:

    -   CAD$ 2.4 million cash on closing;

    -   CAD$ 1.8 million by way of Avcorp shares at $2.35 per share; and

    -   CAD$ 1.8 million by way of a three-year 7% convertible debenture
        convertible to shares of the Company at the following conversion
              Year 1: $2.65
              Year 2: $3.10
              Year 3: $3.60

    About Avcorp

    Avcorp designs and builds major airframe structures for some of the
world's most respected aircraft companies, including Boeing, Bombardier and
Cessna. With 50 years of experience, more than 650 skilled employees and a
300,000 square foot facility near Vancouver, Canada, Avcorp is an agile Tier I
supplier, providing customers with one-stop integrated aerospace design and
manufacture solutions. Avcorp is a Canadian public company traded on the
Toronto Stock Exchange (TSX."AVP"). More information is available at

    "Michael Scholz"


For further information:

For further information: Sandi DiPrimo, Investor Relations, (604)

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