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River Hawk Aviation to Merge With Profile Aviation Services

Posted on: Friday, 25 May 2007, 06:00 CDT

River Hawk Aviation, Inc. (Pink Sheets: RHWA) (River Hawk) today announced that it has executed an agreement to merge with Profile Aviation Services of Hickory, North Carolina (Profile). The agreement provides for an exchange of cash, a convertible note and common stock of River Hawk worth approximately $5.5 million.

Profile, a full-service, fixed-base operation (FBO), includes two companies: 1. Profile Aviation Center, Inc., and 2. Profile Services, Inc. Profile in general provides charter aviation services, aircraft rentals and aircraft leasing. In addition, Profile provides flight school training, aircraft fueling services, aviation equipment repair, maintenance and modification services. Due to Profile's high industry standards and professionalism, NASCAR racing teams utilize Profile as a preferred and leading supplier of aviation charter services. Profile generated revenues of approximately $8.3 million from operations year ending December 31, 2006.

Calvin Humphrey, CEO of River Hawk, stated, "I am very pleased to announce this merger agreement between River Hawk and Profile Aviation. Profile has numerous profit centers that we believe can be enhanced through this merger. Further, we expect this merger to facilitate new business both internally and externally. Carroll Smith founded Profile and is its principal officer and shareholder."

Mr. Humphrey elaborated, "Carroll is a lifelong aviation veteran, and between Carroll and I, we have in excess of 85 years' industry experience. Carroll and I believe we have the ability to expand our revenue base relatively quickly as we feel this merger will position us favorably to make additions and adjustments to the aircraft fleet and to enhance and expand our contract service capabilities immediately. Profile's present estimated fair market assets of approximately $12-13 million include aviation equipment and plane hangars. River Hawk's wholesale and retail aviation aircraft parts, and accessories sales from our San Antonio subsidiary, has assets in excess of $4 million FMV, bringing the total merged assets under the agreement to approximately $16 to $17 million.. We are anxious to consummate this merger and look forward to Profile and Carroll Smith's expertise into the River Hawk family."

Carroll Smith was recently appointed to River Hawk's Board of Directors.

About River Hawk Aviation, Inc.

River Hawk Aviation, Inc., is an aviation parts and components supplier in the aviation industry, currently specializing in Saab and other commuter aircraft parts and components as well as a provider of consulting services, marketing and appraisals to the aviation community. At present, the Company maintains executive offices in Michigan and also has offices and inventory warehousing in San Antonio, Texas.

The Company's plan for future growth and development will focus on the acquisition of aviation-related operating businesses and airlines that display the potential for restructuring into profitable and sustainable aviation-related growth concerns.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe", "expect", "intend", "anticipate", "project", or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) managing acquisitions and expansion of operations; (2) our ability to obtain necessary financing and to manage existing debt; (3) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (4) the Company's ability to comply with federal, state and local government and international regulations; and (5) other factors over which we have little or no control. Further information on potential factors that could affect River Hawk Aviation, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.

Source: Business Wire

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