M7 Aerospace Wins Contract to Support Logistics Aircraft

San Antonio, Tx – March 14, 2005

A team headed by M7 Aerospace of San Antonio has been awarded a U.S. Army contract potentially worth more than $300 million in revenue to support the Army National Guard's fleet of C-23 Sherpa aircraft.

Under terms of the contract, the M7 team, which also includes L-3 Communications Vertex Aerospace of Madison, MS., will provide logistics support for up to 10 years for the C-23 Sherpa fleet.

C-23 is the military designation for a Shorts SD-360, a twin-engine turboprop-powered utility aircraft that has been used commercially in the United States as both a regional airliner and a cargo freighter.

The Army employs the C-23 Sherpa as a utility transport to support theater aviation, cargo, airdrop, and aeromedical evacuation missions.

Through the teaming arrangement, M7 Aerospace will provide overall program management, manage engine, propeller and landing gear overhaul services through a subcontractor, staff field sites, and provide field teams to service aircraft away from their home bases, including some at overseas locations. In addition, M7 will perform major inspections, maintenance and modifications as required.

M7 Aerospace will establish its C-23 Program Office at L-3 Vertex's existing site in Bridgeport, W. Va., to facilitate its one-team approach to logistics support. L-3 Vertex, through its Bridgeport office, will provide total contractor supply chain management for the program, including worldwide procurement, spares overhaul and repair, quality assurance and inventory tracking.

"M7 Aerospace is extremely pleased to join with L-3 Vertex to manage contractor logistics support for the Army's C-23 Sherpa aircraft around the world," said Mac Williams, President and CEO of M7 Aerospace. "We intend to provide premium service to the full satisfaction of our Army customer," he said.

"We are delighted to team with M7 Aerospace in support of the C-23 Sherpa fleet," said L-3 Vertex President Dan Grafton.

M7 Aerospace is a small business that has its headquarters at the San Antonio International Airport. It is located in a 426,000 sq. ft. factory complex formerly occupied by Fairchild Aircraft. M7 acquired the assets of Fairchild and began operations in April 2003.

M7 is active in five business lines: Government Logistics Support Programs; Aircraft Maintenance, Repair and Overhaul; Aircraft Parts, Inventory Management and Product Support; Aerostructures Manufacturing, and Aerial Mapping and Remote Sensing.

With the addition of personnel to meet the needs of the C-23 contract, M7 employment will exceed 550 people worldwide, with more than 300 in San Antonio. M7 had a total of 175 employees when it began business April 2003, with 116 in San Antonio.

M7 has experienced strong sales growth in its first 23 months of operations. The company's sales from inception through the nine-month period from April to December of 2003 totaled approximately $18.5 million annualized. In 2004 M7's sales grew 150 percent, to more than $46 million. Based on its existing sales and contracted backlog, M7 Aerospace is on target to achieve an estimated 650-percent sales growth since its inception, or approximately $120 million in revenue in 2005.

L-3 Vertex Aerospace provides aviation and aerospace technical services, primarily to government customers. The company has more than 11,000 employees working from 300 locations worldwide. L-3 Vertex is a subsidiary of L-3 Communications.

Media Contact: Mike Potts or Phil O’Connor
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