AeroMechanical Services Ltd.
TSX-V Trading Symbol "AMA"
A Tier 2 Industrial Issuer
CALGARY
,
Aug. 27
/CNW/ - AeroMechanical Services Ltd. ("AMA") is pleased to announce it has received a purchase order from Sky Blue Technology Development Co., Ltd. ("Sky Blue") for kits to outfit two (2) Boeing 767 aircraft with AMA's patented afirs(TM) UpTime (TM) system, gross proceeds to AMA being
$48,000
(funds to be wired within 10 business days and prior to shipment). AMA expects the number of afirs(TM) UpTime (TM) system kits required by Sky Blue to increase throughout 2008. Sky Blue's responsibilities include obtaining the required regulatory approvals and the sales and distribution of AMA's products to customers in
China
. There are currently five (5) airlines in
China
committed to installing AMA's solution on their aircraft under the Sky Blue agreements.
AMA also is pleased to announce that the Validation of Supplement Type Certificate ("VSTC") has been received from the Civil Aviation Authority of
China
("CAAC") for the Boeing 767 aircraft to meet the requirements to have these afirs(TM) UpTime (TM) system kits installed in
China
. In AMA's
March 6th
press release, it was stated that AMA would receive approval for its technologies in June and AMA previously thought that installations would commence in July of 2008. The shipments were delayed upon the request of certain officials in
China
to reduce confusion with the hosting of the Olympics and Sky Blue's customers were asked to delay any changes in flight paths, schedules or communications devices until after the Olympics had been completed.
Mr. Xei
, President of the Aircraft Data Communication Company ("ADCC") stated "the process of getting the products certified for the Chinese market has been long and we are pleased that we have achieved our goal and are now ready to help all airlines in
China
improve their voice and data communications capabilities and assist in the growth of our vibrant airline economy. We thank AMA for their patience and help in getting to this milestone point in our relationship."
Mr. Li
(Michael) Fang, Vice President of AMA stated "we have worked hard for the past 3 years to make this vision a reality. We are looking forward to commencing shipment and installation on our contract. These are exciting times for
China
and AMA is proud to be part of the growth of this fantastic country."
AMA had previously entered into a contract with Sky Blue in the fall of 2006 whereby AMA was contracted to provide AMA's patented afirs(TM) UpTime (TM) system to Sky Blue's customers (currently 515 aircraft), pending the necessary approvals.
The terms of the contract are as follows: the contract is for an 8-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on up to 515 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 all 515 aircraft and provide service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately
$35,000,000
to the end of 2010 and annually approximately
$15 million
per year for the remainder of the contract term.
AMA plans to ship this product for installation and activation in
September 2008
. AMA has received the necessary VSTCs for this order as well as all Boeing 737 aircraft.
