April 24, 2007 08:18 ET

ExelTech Aerospace Inc. Announces Bought Deal Private Placement

MONTREAL, QUEBEC--(CCNMatthews - April 24, 2007) -


ExelTech Aerospace Inc. (TSX VENTURE:XLT) (the "Corporation") announced today that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. and including Dundee Securities Corporation and Versant Partners Inc., pursuant to which the underwriters will purchase from the Corporation 40,000,000 units of the Corporation (the "Offered Units") on a "bought deal" basis at a price of $0.30 per Offered Unit for gross proceeds of $12,000,000. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"), each Warrant being exercisable to acquire one common share of the Company at a price of $0.45 per share for a period of 24 months following the Closing Date. The Corporation has also granted the underwriters an option, exercisable in whole or in part, at any time prior to the closing date, to arrange for the sale, on a "best efforts" agency basis, of up to an additional 8,000,000 (the "Optioned Units" and together with the Offered Units, the "Units") for additional gross proceeds of up to $2,400,000. The proceeds of the offering will be used by the Corporation for MRO facilities expansion, acquisitions, working capital and general corporate purposes.

"This financing is a key step in executing on our business plan", stated Derek Nice, President & CEO. "It clearly supports our plans to increase capacity by replacing existing facilities in Montreal and to target growth opportunities in the southern U.S., the Caribbean and Latin America".

The offering is anticipated to close on or about May 15, 2007. The common shares and warrants comprising the Units will be subject to resale restrictions for a period of four months from the closing date under applicable securities legislation. Completion of the private placement will be subject to a number of conditions including the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About ExelTech Aerospace Inc.

The third-largest commercial airframe maintenance, repair, and overhaul (MRO) vendor in Canada, ExelTech Aerospace Inc. is listed on the TSX Venture Exchange and trades under the symbol XLT. The company holds Transport Canada, US Federal Aviation Administration (FAA) and European Aviation Safety Agency (EASA) approvals to repair a wide range of aircraft, structures, components and electrical and electronic systems. Aircraft models serviced by ExelTech Aerospace Inc. include Bombardier CRJ and Embraer ERJ regional jets; ATR-42 and 72, Bombardier Dash-8 and Saab 340 regional turboprops; and Boeing 737, 757 and MD-80 narrow body airliners.

With 230,000 square feet of hangar, shop and office space in three facilities at Montreal and Quebec City, and with marketing offices in the US and Europe, ExelTech Aerospace Inc. provides maintenance, repair and overhaul services to airlines in Canada, the US and 20 other countries around the world.

To learn more about ExelTech Aerospace Inc. (TSX VENTURE:XLT), please visit the company's website at www.exeltech-aerospace.com.

The TSX Venture Exchange has not reviewed and therefore does not accept responsibility for the adequacy or accuracy of this release.

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