AeroMechanical Services Ltd.                 
TSX-V Trading Symbol "AMA"      
A Tier 2 Industrial Issuer   

CALGARY and RENO, Nevada, March 4 /CNW/ - AeroMechanical Services Ltd. ("AMA") today announced that it has reached an agreement with Sierra Nevada Corporation ("SNC") of Reno, Nevada ( www.sncorp.com ) under which SNC will manufacture AMA's afirs(TM) products under license and also market afirs(TM) UpTime(TM) technology and products to the global military market. Under the terms of the agreement, SNC will: (i) pay AMA a license fee and a royalty on all future sales of afirs(TM) to the military segment as consideration for the manufacturing license and military marketing rights; (ii) SNC will be contributing funds, personnel and expertise to the design of AMA's future afirs(TM) airborne technologies; and (iii) share other revenue opportunities with AMA resulting from SNC's sales of afirs(TM) UpTime products and services to military organizations. The up front license payments from SNC will allow AMA to meet its short term working capital requirements, while royalties on future sales to SNC's military customers will augment AMA's recurring revenues from our commercial customers.

AMA will continue to lead sales and service activities in all civil aviation markets, while military sales outside the United States will be evaluated on a case-by-case basis with the appropriate company taking the lead based upon the opportunity.

Richard Hayden , President of AMA, stated, "We are delighted to partner with Sierra Nevada Corporation to take our business to a new level, and especially expand opportunities with airframe manufacturers, major fleet operators, and the global military community. Sierra Nevada is an innovation leader in the field of airborne electronics, flight controls, and satellite communications. SNC is a proven performer for the US and global military community and brings an extensive customer network, technology capability and experience base to the relationship. This relationship complements our other strategic relationships to create a highly capable and responsive global capability."

Greg Cox , Corporate Vice President, stated, "SNC is pleased to be able to partner with AMS to augment its development, manufacturing, and marketing capabilities. We believe that the afirs(TM) UpTime system can bring high value to our military customers in terms of operational control, readiness improvement, maintenance planning, and Operational & Support (O&S) cost savings. We anticipate that the recently introduced fuel savings capabilities of AMS' products should be of great interest to military organizations facing unprecedented demands and cost pressures."