SOURCE: Mooney Aerospace Group

June 06, 2005 16:05 ET

Mooney Posts Strong First Quarter Sales of $9.4 Million

Quarterly Sales Up 162% Year-Over-Year

KERRVILLE, TX -- (MARKET WIRE) -- June 6, 2005 -- Mooney Airplane Company, a wholly owned subsidiary of Mooney Aerospace Group (OTC BB: MNYG), discussed today its results for the first quarter ended March 31, 2005. The Company reported sales of $9,385,000 for the first quarter of 2005, representing an increase of 162% as compared to sales of $3,582,000 reported in the first quarter of 2004. Additional details on first quarter 2005 results can be found in the Company's Form 10-QSB at http://www.sec.gov.

During the three months ended March 31, 2005, the Company sold 20 airplanes as compared to the sale of 7 airplanes for the three months ended March 31, 2004. A sale is recorded on the Company's income statement when the balance of the purchase price of the airplane is paid in full and the airplane is delivered to the customer. For the quarter ended March 31, 2005, the Company reduced its net operating loss before interest and taxes by 86% to $(1,704,000) from a net operating loss before interest and taxes of $(12,285,000) reported in the first quarter of 2004. Excluding a non-recurring expense of $10,052,000, which was recorded for the first quarter of 2004, the Company reduced its underlying net operating loss before interest and taxes for the quarter ending March 31, 2005 by 19% to $(1,704,000) from a net operating loss before interest and taxes of $(2,106,000) in the first quarter of 2004.

J. Nelson Happy, Vice Chairman and President of Mooney Aerospace Group, Ltd., stated, "The enhancement and aggressive implementation of our marketing program, coupled with the outstanding response to our nationwide Freedom Tour, have produced record-breaking results for Mooney in the first quarter of 2005. These results are a testament to the success of our restructuring program initiated in mid-2004. Throughout 2005, we remain focused on increasing production of our manufacturing line in Kerrville, Texas. With our increased capacity to produce more airplanes, we are reducing the fixed manufacturing costs associated with each airplane produced. With strong top-line growth, reduced per unit costs and the build up of a superior, competitive after-market customer support division, we expect continued improvements in gross margin and the continued reductions in net operating loss before interest and taxes in 2005, putting the Company on track to reach its goal of becoming profitable."

About Mooney Airplane Company

Mooney Airplane Company, located in Kerrville, Texas, is a wholly owned subsidiary of Mooney Aerospace Group, Ltd., a general aviation holding company that is publicly traded on the (OTC BB: MNYG). Mooney Airplane Company currently sells five models of the M20, the highest-performing, four-place single-engine piston-powered aircraft, now available with the Garmin G1000 glass panel display. Since its inception in 1946, the company has manufactured and delivered more than 10,000 aircraft worldwide. Today, 7,000 customers in the United States and 1,000 more overseas fly Mooney's proven, high-performance airplanes. For more information, visit www.mooney.com. Investors should visit http://www.otcfn.com/mnyg.

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the Company's products, general acceptance of the Company's products and technologies, competitive factors, timing, and other risks described in the Company's SEC reports and filings.

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