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Last updated on April 19, 2014 at 17:21 EDT

Avcorp receives notice of appeal from Cessna Aircraft Company

June 7, 2013

VANCOUVER, June 7, 2013 /PRNewswire/ – Avcorp Industries, Inc. (the “Company”)
reports that it has received a notice of appeal and a motion to stay
execution filed by Cessna Aircraft Company (“Cessna”) on June 7, 2013
in the United States Court of Appeals for the Tenth Circuit (the “Court
of Appeals”) from the judgement entered against Cessna on May 8, 2013
by the United States District Court for the District of Kansas (the
“District Court”). The judgement of the District Court affirmed the
binding arbitration award made on November 16, 2012 in favour of the
Company.

The arbitration panel awarded the Company USD27.4 million, which, under
the terms of an arbitration agreement between Cessna and the Company,
was a final and binding award. On November 26, 2012, Cessna filed a
motion in the District Court to vacate the award. On May 1, 2013, the
District Court entered its Memorandum and Order which denied Cessna’s
motion to vacate the award, finding that Cessna did not satisfy the
required legal standard. The District Court also granted the Company’s
motion to affirm the award and, in addition, awarded pre-judgement
interest of approximately USD1 million. On May 8, 2013, the District
Court entered final judgement in the Company’s favour on the
arbitration award in the aggregate amount of USD28.4 million.

It is the Company’s belief that Cessna’s appeal from the judgement is
without legal basis and that the judgement will be affirmed by the
Court of Appeals.

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 release should be read in conjunction with the Company’s unaudited
financial statements contained in the Company’s Annual Report and with
the quarterly financial statements and accompanying notes filed with
Sedar (www.sedar.com).

Certain statements in this release 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 extent to which the Company is able to achieve
savings from its restructuring plans; (b) uncertainty in estimating the
amount and timing of restructuring charges and related costs; (c)
changes in worldwide economic and political conditions that impact
interest and foreign exchange rates; (d) the occurrence of work
stoppages and strikes at key facilities of the Company or the Company’s
customers or suppliers; (e) government funding and program approvals
affecting products being developed or sold under government programs;
(f) cost and delivery performance under various program and development
contracts; (g) the adequacy of cost estimates for various customer care
programs including servicing warranties; (h) the ability to control
costs and successful implementation of various cost reduction programs;
(i) the timing of certifications of new aircraft products; (j) the
occurrence of further downturns in customer markets to which the
Company products are sold or supplied or where the Company offers
financing; (k) changes in aircraft delivery schedules or cancellation
of orders; (l) the Company’s ability to offset, through cost
reductions, raw material price increases and pricing pressure brought
by original equipment manufacturer customers; (m) the availability and
cost of insurance; (n) the Company’s ability to maintain portfolio
credit quality; (o) the Company’s access to debt financing at
competitive rates; and (p) uncertainty in estimating contingent
liabilities and establishing reserves tailored to address such
contingencies.

SOURCE Avcorp Industries Inc.


Source: PR Newswire