M7 Aerospace Awarded Supplemental Type Certificate To Convert ATR 72s From Passenger to Freight

San Antonio – September 7, 2005

The Federal Aviation Administration has issued a Supplemental Type Certificate (STC) to M7 Aerospace for the passenger to freight conversion of ATR 72 turboprop aircraft.

M7 already holds an STC to convert the smaller ATR 42 aircraft from passenger to freight conversion and to date has completed 30 ATR conversions for a major customer.

This new conversion entails removing passenger configuration hardware from the cabin and installing a new 10-zone cargo configuration. This installation includes strengthening of the floor structure, modifying the doors to facilitate loading of cargo, strengthening the door surrounds to prevent damage during loading and installing an enhanced smoke detection system.

Converting regional airliners from passenger to cargo configuration is one of M7's areas of core business expertise. The company performs conversions at both of its FAA Part 145-certified repair stations, in San Antonio (Certificate G78R691X) and at the company's facility in Springfield, MO (Certificate OWFR547L). The developmental work for the ATR 72 STC was completed at the San Antonio repair station.

In addition to ATRs, M7 Aerospace has expertise in heavy maintenance and passenger to freight conversions for DeHavilland Dash 8s, Saab 340s, Embraer 120/135/145's and Fairchild Metroliners.

Additional M7 repair station capabilities include special mission conversions, corporate interior conversions, Garrett/Honeywell TPE-331 heavy maintenance, and a range of avionics services including installation of TCAS and TAWS systems, flight data recorders and cockpit voice recorders

Maintenance, repair and overhaul (MRO) is one of M7's five primary business activities. The company specializes in providing fleet service to commercial and government operators of regional aircraft and to other aviation customers.

In addition to its MRO activity, M7 specializes in government contract logistics support programs; aerostructures manufacturing; aircraft parts and product support, and aerial mapping with digital imaging products.

M7 currently holds three Logistics Support contracts with the U.S. government to support fleets of C-26, C-23 and C-20 aircraft. C-26 is the government designation for a Fairchild Metro 23 regional airliner. C-20 is the designation for Gulfstream III or IV aircraft. C-23 is the government designation for a Shorts SD-360. M7's backlog of government business totals more than $700 million.

The Aerostructures Manufacturing segment of M7 Aerospace is capable of building virtually anything airframe-related from the smallest detail parts to complete aircraft. More than 1,000 Fairchild Metro and Merlin-series aircraft were built in M7's (formerly Fairchild Aircraft, Inc.) facilities. The San Antonio-based factory team also built complete wings for Dornier 328 fanjet regional airliners.

M7 is an approved supplier to Lockheed Martin, Northrop Grumman, Boeing, Augusta-Westland and other well-known aerospace manufacturers.

M7 Aerospace supports the worldwide fleet of Fairchild Metro- and Merlin-series aircraft through the company's aircraft parts and product support. M7 holds the type certificate for these airplanes and aggressively performs its role as the Original Equipment Manufacturer. It also builds parts for Metros and Merlins in its Aerostructures Manufacturing operation.

M7 Aerospace's fifth core business is M7 Visual Intelligence (VI). It specializes in remote sensing and surveillance, including ultra-high resolution digitally collected and processed true-color imaging, near-infra-red imaging and LiDAR (Light Detection and Ranging).

VI's combination of the imaging and LiDAR generates photomaps that are sub-meter accurate in latitude and longitude, and better than 15-cm accurate in elevation.

Major applications of VI's technology include forestry, environmental studies, engineering, pipeline planning, construction, city planning and flood control studies. VI also markets its patented high-resolution color camera systems to the public and private sectors for mapping and reconnaissance applications, and provides automated image processing.

M7 Aerospace is based on the international airport in San Antonio, Texas. The company is located in a 426,000 sq. ft. factory complex formerly occupied by Fairchild Aircraft. M7 acquired the assets of Fairchild Aircraft in December 2002 and began operations under its own name on April 1, 2003.

M7 began with approximately 175 employees two years ago, including 116 in San Antonio. Today, the company now employs more than 600 people worldwide and more than 350 in San Antonio.

Media Contact: Mike Potts or Phil O’Connor
Tel. (210) 824-9421 ext. 7759
Fax (210) 824-9476
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