ExelTech Aerospace Launches Non Destructive Inspection Services

    MONTREAL, July 10 /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, today announced the launch of its new Non Destructive Inspection
Services ("NDI") capability, which will meet a growing gap in the marketplace.
    ExelTech is offering five types of non destructive inspection services -
liquid penetrant; magnetic particle; radiographic; ultrasonic; and eddy
current - with the work performed by highly trained specialist technicians
utilizing the latest technology.
    Many of the maintenance tasks on commercial aircraft include the
requirement for these specialized inspection procedures. Until now, the
company has subcontracted this work, but as ExelTech's business has increased
it has had to increasingly rely on suppliers as far away as Winnipeg and
Calgary and other centres outside the Montreal area. Now, ExelTech will be
able to meet its internal needs and tap into growing demand from customers in
Canada and in international markets.
    ExelTech's NDI services are a component of the company's newly-created
Technical Services Group, which will operate from a dedicated facility at
Montreal's Pierre Elliott Trudeau International Airport. The group will also
manage the company's fast-growing line maintenance operations and other new
services that will replace work currently outsourced and will meet new
customer needs.
    "We have invested almost $600,000 to add this new NDI capability," says
Martin Laplante, manager of the new Technical Services Group. "This includes
the acquisition of specialized tooling and the hiring and training of
technicians. We expect to see an immediate return on our investment."
    "This is an exciting time at ExelTech," added Sylvain Duval, the
company's President & COO. "NDI is just the latest of a stream of initiatives
that are creating new revenue streams, driving stronger customer service and
increasing margins. These initiatives are all making a contribution to the
company's return to profitability."

    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), European Aviation Safety Agency
(EASA) and Bermuda (BDCA) approvals to maintain a range of aircraft and
associated structures, components and systems. Aircraft models serviced by
ExelTech Aerospace include Bombardier CRJ and Embraer ERJ regional jets and
ATR42/72, Bombardier Dash 8 and Saab 340 family 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
    Later this month, ExelTech will open a purpose-built 140,000 sq ft
(13,000 sq. meters) 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.
    %SEDAR: 00020968EF

For further information:

For further information: Donald Kamenz, Vice President Marketing &
Sales, ExelTech Aerospace Inc., (514) 631-5114,

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