AeroMechanical Services Ltd. Announces Increase In Over-allotment Option Pursuant to Proposed Bought Deal Private Placement

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CALGARY , March 6 /CNW/ - AeroMechanical Services Limited (TSXV:AMA) today announced that it has increased the size of over-allotment option pursuant to the previously announced bought deal private placement.

On February 28, 2008 , AMA announced that it had entered into an agreement with Research Capital Corporation (the "Underwriter"), whereby the Underwriter will purchase, on a bought deal private placement basis, 3,000,000 Units (the "Units") of AeroMechanical at a price of $1.00 per Unit (the "Offering"). Each Unit shall be comprised of one common share (the "Common Shares") and half of one common share purchase warrant (the "Purchase Warrants"). Each whole Purchase Warrant shall be exercisable into one Common Share at an exercise price of $1.30 for 24 months following the Closing. The gross proceeds of the offering will be $3,000,000 . The Underwriter shall have the option (the "Underwriter's Option") to increase the size of the Offering by up to $1,000,000 in Units by giving written notice of the exercise of the Underwriter's Option to the Company at any time up to 48 hours before Closing.

AMA and the Underwriter have agreed to increase the Underwriter's Option by $500,000 such that the Underwriter shall have the option to increase the size of the Offering by up to $1,500,000 in Units by giving written notice of the exercise of the Underwriter's Option to the Company at any time up to 48 hours before Closing.

The Units will be offered by way of private placement exemptions from prospectus requirements in such provinces of Canada as the Underwriter may designate.

The Offering is scheduled to close on or about the week of March 10, 2008 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

In consideration for its services, the Underwriter will receive a cash commission of 8% and broker warrants equal to 7% of the gross proceeds of the Offering.

The proceeds received by the Company from the sale of the Units will be used to fund its working capital needs and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About AeroMechanical Services Ltd.

AeroMechanical Services Ltd. provides proprietary technological solutions 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 afirs(TM) UpTime(TM) allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time. Due to the competitive nature of the marketplace AMS is maintaining its position to withhold the airline's name and specific location. For further clarification of potential contract values please refer to AMA quarterly reports.

For further information contact:

afirs, UpTime, FLYHT and aeroQ are Trade Marks of AeroMechanical Services Ltd.

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

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