Avcorp receives Boeing Performance Excellence award

Common Stock Listed

Toronto

Trading Symbol: AVP

VANCOUVER, Jan. 17, 2013 /PRNewswire/ – Avcorp Industries Inc. (“AVP” or the
“Company”) today announced that it has received a 2012 Silver Boeing
Performance Excellence Award. The Boeing Company issues the award
annually to recognize suppliers who have achieved superior performance.
Avcorp maintained a Silver composite performance rating for each month
of the 12-month performance period, from Oct. 1, 2011, to Sept. 30,
2012.

This year, Boeing recognized 594 suppliers who achieved either a Gold or
Silver level Boeing Performance Excellence Award. Avcorp is one of only
441 suppliers to receive the Silver level of recognition.

“Winning this award for a second year in a row is an honour and
demonstrates our employees’ focus on meeting customer expectations
through a culture of operational excellence, continuous improvement,
hard work and sustained superior performance” said Mark Van Rooij,
President and CEO of Avcorp.

Avcorp supplies integrated aerostructure assemblies, metal bonded
components, and bench-top assemblies to Boeing locations in Seattle,
Everett, Renton, Salt Lake City, Long Beach, Winnipeg and Philadelphia
for several Boeing Commercial Airplanes and Boeing Defense and Space
Programs.

About Avcorp

Avcorp designs and builds major airframe structures for some of the
world’s leading aircraft companies, including BAE Systems, Boeing, and
Bombardier. With more than 50 years of experience, over 400 skilled
employees and 354,000 square feet of facilities in Delta BC and
Burlington ON, Avcorp offers integrated composite and metallic aircraft
structures to aircraft manufacturers, a distinct advantage in the
pursuit of contracts for new aircraft designs, which require
lower cost, light weight, strong, reliable structures. Our Burlington
location also offers composite repairs for commercial aircraft. Avcorp
is a Canadian public company traded on the Toronto Stock Exchange
(TSX:AVP).

(signed)

MARK VAN ROOIJ

PRESIDENT and CHIEF EXECUTIVE OFFICER

Forward-Looking Statements

This management discussion and analysis should be read in conjunction
with the Company’s audited financial statements. Certain statements in
this report and other oral and written statements made by the Company
from time to time are forward-looking statements, including those that
discuss strategies, goals, outlook or other non-historical matters; or
projected revenues, income, returns or other financial measures. These
forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those contained in
the statements, including the following: (a) the ability of the
Company to renegotiate its debt agreements under which it is in
default; (b) the extent to which the Company is able to achieve savings
from its restructuring plans; (c) uncertainty in estimating the amount
and timing of restructuring charges and related costs; (d) changes in
worldwide economic and political conditions that impact interest and
foreign exchange rates; (e) the occurrence of work stoppages and
strikes at key facilities of the Company or the Company’s customers or
suppliers; (f) government funding and program approvals affecting
products being developed or sold under government programs; (g) cost
and delivery performance under various program and development
contracts; (h) the adequacy of cost estimates for various customer care
programs including servicing warranties; (i) the ability to control
costs and successful implementation of various cost reduction programs;
(j) the timing of certifications of new aircraft products; (k) the
occurrence of further downturns in customer markets to which the
Company products are sold or supplied or where the Company offers
financing; (l) changes in aircraft delivery schedules or cancellation
of orders; (m) the Company’s ability to offset, through cost
reductions, raw material price increases and pricing pressure brought
by original equipment manufacturer customers; (n) the availability and
cost of insurance; (o) the Company’s ability to maintain portfolio
credit quality; (p) the Company’s access to debt financing at
competitive rates; and (q) uncertainty in estimating contingent
liabilities and establishing reserves tailored to address such
contingencies.

SOURCE Avcorp Industries Inc.