TSX-V Trading Symbol "AMA"
A Tier 2 Industrial Issuer
CALGARY , June 11 /CNW/ - AeroMechanical Services Ltd. ("AMA") is pleased to announce we have received a deposit from the African operator announced in the May 12, 2008 press release in titled "AeroMechanical Services Ltd. Announces Contract with African Scheduled Service and Charter Airline."
AMA has received a deposit in the amount of $626,500 USD for all nineteen aircraft under contract. The terms of the contract are as follows: the contract is for a 5-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on nineteen aircraft (with the possibility to increase it as the size of the carrier's fleet of aircraft increases). Initially, it is intended that installation on two aircraft would begin on or about June 2008 , the installation on the second two aircraft would begin on or about July 2008 and the installation on five additional aircraft would begin on or about August 2008 and the remaining will be scheduled for after September 2008 .
If AMA is able to install on the nineteen aircraft and provide service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately $2,874,200 .
This disclosure as it relates to this agreement is subject to the following disclaimer:
When a contract is initially signed, the intended number of aircraft, pricing and potential installation schedules is agreed to by the parties. The actual installation schedules as well as the number and types of aircraft are often revised throughout the term of the agreement as the airline realigns its fleet of aircraft with its business requirements. Delays in installations can and do occur which can affect the total value of the contracts such that the revenues noted above may not be fully achieved. Fulfillment of the contract terms may also be affected if there are any changes to government statutes, regulations or rules of the applicable governing bodies. The contract terms and values disclosed herein are based on the original information available to AMA upon execution of the contract and are subject to change. For the actual revenue earned, please see AMA's financial statements including its revenue recognition policy disclosed within the notes to the Audited Annual Financial Statements