AeroMechanical Services Ltd.
TSX-V Trading Symbol "AMA"
A Tier 2 Industrial Issuer
CALGARY
,
June 25
/CNW/ - AeroMechanical Services Ltd. ("AMA") is pleased to announce we have received a contract from a Latin American cargo operator to outfit six aircraft with AMA's patented afirs(TM) UpTime(TM) system.
The terms of the contract are as follows: the contract is for a 3-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on six aircraft (with the possibility to increase it as the size of the carrier's fleet of aircraft increases). If AMA is able to install on the six aircraft and provide service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately
$510,540
.
Initially, it is intended that installation on two aircraft would begin on or about
July 2008
and installation on the remaining four aircraft would begin on or about
August 2008
. AMA has acquired the necessary STC approval to provide the services to this customer. This addition increases the total aircraft under contract with AMA to 727 from 32 carriers.
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.
