MTI Global Inc.
TSX : MTI

MTI Global Inc.

December 15, 2006 13:26 ET

MTI Global Wins Contract For ARJ 21 In China

MTI has signed a long term supply contract with Shanghai Aircraft Manufacturing

MISSISSAUGA, ONTARIO--(CCNMatthews - Dec. 15, 2006) - MTI Global Inc. (TSX:MTI) announced today that it has been awarded a long term contract by China's AVIC 1 Commercial Aircraft Company (ACAC) to supply thermal and acoustic insulation systems for the new Chinese regional jet - the ARJ 21. The contract is to supply the manufacturer of the aircraft - the Shanghai Aircraft Manufacturing Factory (SAMF) - in China.

"This contract reconfirms our position as the industry leader for regional jets," said Bill Neill, President and Chief Executive Officer of MTI Global. "This new opportunity opens many doors for MTI-PolyFab into the Asian aerospace market."

The first delivery will take place in 2006 and MTI believes that, based on current listed price for systems, volumes could exceed CDN $1,000,000 per year.

ACAC plans to have the first 90-seat ARJ21-700 aircraft roll out at the end of 2007 followed by first flight in March 2008 and is aiming to have the ARJ21-700 receive Chinese certification in September 2009.

"This contract is a culmination of a three-year effort by our sales and engineering team," said Marc Simard, Executive Vice President, MTI Global's aerospace division. "We are proud to be selected as the supplier of choice for this new program."

"We are very happy to sign the contract for the thermal and acoustic insulation systems with MTI," said Bai Yuanchao, Director of Purchasing, Shanghai Aircraft Manufacturing Factory. "This joint press release demonstrates the will of MTI Global to open the Asian aerospace market and demonstrates the level of trust and cooperation that both organizations have in each other."

Nancy Liu, Insulation Project Manager at Shanghai Aircraft Manufacturing Factory stated that, "It is our goal to continue growing our relationship with MTI and to develop new opportunities with them." She adds, "We wish MTI great success in future development and hope our cooperation will be mutually beneficial."

ACAC forecasts a demand of over 500 regional aircraft over the next 20 years for the developing Chinese aviation market. Currently Shandong Airlines has ordered 10 aircraft and will be the launch customer. Shanghai Airlines and Shenzhen Financial Leasing have ordered five and 20 respectively.

About the Company:

MTI Global Inc. designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI's manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI also produces and distributes specialty silicone elastomer products. MTI's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, electronics, and the medical market through a 51% interest in Sterne SARL of Cavaillon, France. MTI's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond and Buchanan, Virginia; Bremen, Germany; and a joint venture in Baja, Mexico. The Company also has sales operations in England and Sweden, and an engineering support centre in Brazil.

The foregoing press release contains forward-looking statements and is subject to important risks and uncertainties. Although MTI Global believes that the expectations reflected in any forward-looking statements are reasonable, the results or events predicted in these statements may differ materially from actual results or events. Forward looking statements are based on estimates and assumptions derived from past experience, historical trends, current conditions and expected future developments. Many factors could cause results or events to differ from current expectations, including the impact of price and product competition, general industry and market conditions and growth rates and reliance on key customers. For additional information with respect to these and other factors, see the reports filed by MTI Global Inc. with the applicable securities regulatory authorities at www.sedar.com. MTI Global Inc. disclaims any intention or obligation to update or revise any forward-looking statements.

Contact Information

  • MTI Global Inc.
    Bill Neill
    President and Chief Executive Officer
    (905) 564-9700
    or
    Fleishman-Hillard Canada
    Anne Lachance
    Investor Relations
    (416) 214-0701