AeroMechanical Services Ltd. Announces Closing Of Brokered Private Placement

Calgary 09/01/2006 – Mr. Bill Tempany, CEO of AeroMechanical Services Ltd. (“AMS” or the “Corporation”) (TSX.V: AMA) is pleased to announce the closing of the previously announced brokered private placement.  MGI Securities Inc. acted as agent for the offering.

An aggregate of 16,250,000 units (“Units”) were issued by the Corporation at a price of $0.40 per Unit, for gross proceeds of $6,500,000 (the “Offering”).  Each Unit consists of one (1) common share (“Common Share”) and one half of one (1/2) Common Share purchase warrant (“Warrant”).  Each whole Warrant will entitle the holder to acquire one (1) Common Share for a period of two years from the closing date of the Offering at an  exercise price of $0.60 per Common Share for the period from the closing date of the Offering to the date that is 12 months from the closing date of the Offering and thereafter at an exercise price of $0.75 per Common Share. 

MGI Securities Inc. was paid a cash commission of $325,879 in connection with the Offering. In addition, MGI Securities Inc. was issued 869,597 agent’s warrants to acquire up to that number of units (“Agent’s Units”), at price of $0.40 per Agent’s Unit, for a period of 24 months from the date of issue.

The Corporation also paid an aggregate of $129,120 in consulting fees and issued an aggregate of 430,403 consultant’s options to acquire up to that number of units (“Consultant’s Units”), at price of $0.40 per Consultant’s Unit, for a period of 24 months from the date of issue.

The proceeds from the Offering will be used to fund the Corporation’s inventory, marketing and working capital.  All of the securities issued pursuant to the Offering are subject to a 4-month hold period. Completion of the Offering is subject to the final approval of the TSX Venture Exchange.

About AeroMechanical Services Ltd.

AeroMechanical Services Ltd. provides proprietary technologies and services designed to reduce costs and improve efficiencies in the airline industry. The company has successfully commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology Automated Flight Information Reporting System (AFIRS™) and UpTime™ allows airlines to monitor and manage aircraft operations in real time, all the time, anywhere on the planet.

For further information contact:

AFIRS, UpTime, AeroQ and Smart Box are Trade Marks of AeroMechanical Services Ltd.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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