Kelowna Flightcraft Ltd.

Kelowna Flightcraft Ltd.

March 30, 2005 16:15 ET

Kelowna Flightcraft Ltd. Announces Canadian Military Flight Training Contract


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KELOWNA FLIGHTCRAFT LTD.

MARCH 30, 2005 - 16:15 ET

Kelowna Flightcraft Ltd. Announces Canadian Military
Flight Training Contract

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - Kelowna
Flightcraft Ltd. is pleased to announce that they have been selected by
the Government of Canada to operate the new Canadian Forces Contracted
Flying Training and Support (CFTS) services program at Southport near
Portage La Prairie, Manitoba. Kelowna Flightcraft will lead a team of
Canadian companies collectively known as Allied Wings to provide flying
training and support services to the Canadian Forces over a 22-year
period. The CFTS contract is valued at over $1.77 billion and is in
support of No.3 Canadian Forces Flying Training School in Southport and
17 Wing flying operations in Winnipeg.

"We are pleased to be selected by the Government of Canada to deliver
primary flight training to Canada's Military and look forward to working
with the Department of National Defence, Southport Aerospace Center, and
the community of Portage La Prairie to deliver the best trained pilots
graduating from the most advanced training equipment available," says
Jim Rogers, General Manager for Kelowna Flightcraft.

Led by Kelowna Flightcraft, the Allied Wings team is a pan-Canadian
effort in partnership with Canadian Helicopters (Edmonton and Montreal),
Canadian Base Operators/Black and McDonald Limited (Toronto), Atlantis
Systems International (Toronto) and Coastal Pacific Aviation
(Abbotsford). Each member of the team possesses the expertise,
experience, resources and skills in one or more of the critical areas
required in creating and delivering the services under the new CFTS
contract.

"The Allied Wings Team will deliver an exemplary product that will be an
international showcase of flight training in which all Canadians can be
proud," said Bill Weston, Deputy Contract Manager.

Allied Wings Facts:

- Combined, the Allied Wings team has over 3000 full time employees in
over 35 locations in Canada from coast-to-coast, with annual revenues in
excess of $600 million.

- The Allied Wings team trains more than 500 fixed wing and helicopter
pilots per year in Canada.

- The Allied Wings team operates a combined fleet of over 200 fixed and
rotary wing aircraft in Canada.

- The Allied Wings team currently operates three advanced ground
training schools with state-of-the-art equipment covering initial and
advanced fixed and rotary wing applications.

- The Allied Wings team currently operate major Canadian and U.S.
military bases on a 'performance incentive fee' basis earning high marks
for customer satisfaction.

- Allied Wings has extensive hands-on experience operating and
maintaining the aircraft types that will be used under the new CFTS
contract.

Kelowna Flightcraft Ltd is proud to head the Allied Wings team and
stands ready to deliver training and support for the Canadian Forces.

Kelowna Flightcraft Background

Kelowna Flightcraft operates Canada's third largest airline; is an
aircraft maintenance and manufacturing organization; is a transport
Canada Design Approval organization (engineering); owns the type
certificate for the Convair airplane, and is a Transport Canada approved
Training Organization delivering training to a wide range of aviation
companies. In operation since 1970, Kelowna Flightcraft is ISO 9001
certified and employs over 850 employees across Canada with our head
office located in Kelowna, BC.

Kelowna Flightcraft's full service aircraft maintenance operations focus
on heavy aircraft maintenance, overhaul, and modifications with major
facilities in Kelowna, BC and Hamilton, Ont. This includes mechanical,
structures, avionics, engine, painting & parts supply with a focus on
B727, B737, B757, and Convair 480, 580 and 5800 stretch.

Kelowna Flightcraft's charter operations deliver freight and passengers
365 days a year across Canada and to international destinations
utilizing B727's, Convair 580's and a B737.

For further information on the Contracted Flying Training and Support
(CFTS) program: www.forces.gc.ca/cfts

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