Avation plc
LSE : AVAP

August 12, 2008 02:15 ET

Re Contract

                                                                                    11 August 2008
                                                 
                                            AVATION PLC
                                                 
                                   ("Avation" or "the Company")
                                                 
                               SECURES USD $5.12 M FINANCE FACILITY

Avation  PLC  is  pleased to announce that it has secured a fixed interest USD $5,120,000  finance
facility  from  an  international equipment finance arm of a major British  commercial  bank.  The
Company  intends to use the proceeds to expand its aircraft fleet and partially fund the  purchase
of an additional commercial passenger jet aircraft.

Finance Facility
The  terms  of  the finance facility are in the main part typical of transactions  of  this  type,
however, salient details potentially of interest to a shareholder in the Company are:

    *        the finance facility amount is $5,120,000;
    *        the currency of the facility and interest repayments are denominated in United States
        Dollars;
    *        the  facility  has a term to expiry of 60 months with total cost funds and  margin  interest
        fixed at 6.57 per cent.;
    *        The  intention is that the facility will be fully amortizing in principle and interest  over
        its term to expiry; and
    *       there are no convertible to equity elements to the facility.


Group Intercompany Facilities
Shareholders  are  further advised that Avation PLC's subsidiary Capital Lease Avation  PLC  (AIM:
CLA)  has  repaid $400,000 of the mezzanine funds advanced by the Company in connection  with  the
recent purchase of two Airbus A321-200 by the subsidiary.

Avation's  Chairman, Jeff Chatfield said: "Avation has, once again, proved that despite apparently
turbulent  markets,  competitive finance remains available to profitable,  cash  flow  generative,
dynamic  and entrepreneurial companies allowing them to grow their businesses. We intend  to  take
advantage of these markets by making aggressive offers for acquiring additional aircraft."

             The directors take responsibility for the contents of this announcement.


                                            ---ENDS---

ENQUIRES:

AVATION PLC                                                      07783 942 553
Jeff Chatfield, Chairman

STOCKBROKERS
WH Ireland Ltd                                                   020 7220 1670


Cornhill Asset Management Ltd                                    020 7743 6000


ADVISOR                                                          020 7628 1128
Frank Lucas
Loeb Aron & Company Ltd.

MEDIA                                                            020 7562 3350
Maxine Barnes, Nick Rome
Bishopsgate Communications


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