M7 Aerospace Acquires Fairchild-Dornier

San Antonio, TX – May 19, 2003

M7 Aerospace LP, a new company, has been quietly created here to provide product support services for Fairchild Metro and Dornier 328 aircraft. In addition, the new company will serve as a launch platform for new aviation products and services.

Based at the San Antonio International Airport in facilities formerly occupied by Fairchild Aircraft and Dornier Aviation (North America) (DANA), M7 Aerospace currently employs approximately 175 people.

Harold (Mac) Williams, Chief Executive Officer, said M7 Aerospace was formed in December 2002, when it acquired the assets of the three operating subsidiaries of Fairchild Aircraft: Metro Support Services, Inc., (MSSI), Merlin Express Inc., (MEI), and Gen-Aero, Inc., (d.b.a. Fairchild Aircraft Services).

M7 was the successful bidder for these assets in a bankruptcy auction held in San Antonio on December 17. In addition, on February 10 the Federal Bankruptcy Court in Alexandria, Virginia awarded M7 Aerospace the assets of DANA.

M7 Aerospace began operations under its own name on April 1, 2003. As part of the assets, M7 acquired the FAA type certificates for the Metro and Merlin series of aircraft.

"From our customer's standpoint, we are already a known entity," Williams said. "Yesterday they knew us as Fairchild and DANA. Today we are M7 Aerospace. The companies that have become M7 Aerospace are profitable and financially sound going concerns. We are continuing to provide high quality service and support to customers who know from experience that we will deliver what we promise."

Williams emphasized that M7 Aerospace is well capitalized and financially strong. The company's financing is provided through JPMorgan Chase and 4M Investments, of Houston, Texas.

Houston entrepreneur Ted B. Miller Jr., who founded both Crown Castle International (CCI:NYSE) and 4M Investments, is Chairman of M7 Aerospace.

"Supporting Do 328 and Metro/Merlin series aircraft is a significant long term element of the M7 Aerospace business strategy," Williams said. "The four core business entities have been operating individually, but we have already begun to fold them together in areas where there is obvious commonality. Soon all four will be functioning together within the seamless corporate structure of M7 Aerospace."

In addition, Williams said, M7 is exploring additional business opportunities that will take advantage of the assets the company now owns. The facilities operated by M7 have significant manufacturing potential, up to and including the capability to build complete aircraft. At one time the Fairchild plant now owned by M7 produced as many as 10 Metro 23 19-passenger commuter aircraft per month. Williams delined to elaborate on what direction new corporate initiatives might take.

In the current corporate structure, M7's operating divisions have these capabilities:

Metro Support Services provides engineering and parts support, and technical assistance to the operators of approximately 750 Metro/Merlin aircraft currently operating worldwide. About 70 percent of the these airplanes are based in the United States. Merlin Express holds a contract with the United States Air Force to provide contractor logistics support for certain aircraft operated by the Army and Air National Guard.

Dornier Aviation (North America) (DANA) provides parts, service and technical support to operators of Do 328 aircraft, both turboprop and jet versions. The M7 Aerospace acquisition of DANA's assets included the tooling and equipment necessary to build wings for the 328 series aircraft.

Gen-Aero performs aircraft repair and maintenance located on the San Antonio International Airport. The company holds an FAA repair station license, and has specialized in major maintenance on Fairchild and Fairchild Dornier built airplanes. Williams said the company's services will be marketed to operators in an expanded range of offerings for regional airline and corporate aviation aircraft.

"We are focused on exceeding the expectations of our customers, our investors and our employees," Williams continued. "We have a solid, well-financed business plan, built on strategy focused growth. We look forward to being a signficant member of the aerospace business community for a very long time."

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