SOURCE: River Hawk Aviation, Inc.

April 17, 2008 11:28 ET

River Hawk Aviation, Inc. Reports 2007 Financial Results, Announces Expanded Charter Services and Provides Outlook for 2008

HICKORY, NC--(Marketwire - April 17, 2008) - River Hawk Aviation, Inc. (PINKSHEETS: RHWI), a regional FBO/MRO and aviation charter and services provider, recently reported its 2007 year-end financial results in its 10-KSB filing. The Company reported revenues of $5.3 million for calendar year 2007 versus $0 for calendar year 2006. 2007 operating losses were $2.4 million versus $1.4 million during the prior year and with net losses equaled $3.4 million in 2007 versus $2.3 million for the prior year.

"2007 was a transitional year for River Hawk Aviation," said Calvin Humphrey, CEO of River Hawk Aviation. "We shifted away from a niche, geographically focused passenger air service business to a fully operating regional FBO/MRO with charter aviation and aircraft management services capability, with an intent to expand nationally. Our 2007 results are not indicative of what we expect to occur in 2008 and beyond.

"In 2007, we recognized in excess of $900,000 in write offs in connection with our discontinued subsidiaries and we also realized in excess of $900,000 in reorganization costs and expenses. These expenses simply will not recur in 2008. It should be noted that our organization came full circle in August of 2007 when we completed our acquisition of Profile Aviation Center, Inc. and Profile Aviation Services, Inc. and we closed our asset acquisition of Riverhawk Aviation, Inc.-San Antonio.

"The timing of these acquisitions might have been a little better to the extent that they occurred near the tail end of each of the business's normal operating cycles. Nonetheless, this has allowed us to further develop a profitable business model and to better prepare our platform for future anticipated acquisitions. I am confident that the continuing hard work of our River Hawk management team will result in profitable future reports of operating results as soon as the third quarter of this year."

In March 2008, the Company announced the completion of the acquisition of (Carolina Air Charter, Inc., of Concord, North Carolina) an airline charter company with an active 135 license. This acquisition enables the Company to offer, in addition to Fixed Based Maintenance Operations, full charter service capabilities at a time when charter services are increasingly in demand.

"2008 will be a year of growth for River Hawk Aviation," Humphrey added, "Although Q1 and Q2 are expected to show losses we still expect to have positive cash flows during these quarters. Further, we expect that by Q3 we will be able to report operating profits and maintain positive cash flows. Overall, for 2008 we expect that we will be able to generate revenues in excess of $15 million."

About River Hawk Aviation, Inc.

River Hawk Aviation, Inc. is a holding company concentrating on the acquisition and development of aviation niche companies. Presently, the Company's operating subsidiary base is comprised of Profile Aviation Center, Inc., Profile Aviation Services, Inc. of Hickory, North Carolina and River Hawk Aviation, Inc. (a private entity) of San Antonio, Texas.

The combined synergies associated with the Company's current holdings will provide revenues from charter aircraft operations, aviation management services to private aircraft owners, certified aircraft maintenance services, fueling and other fixed base operation services as well as aviation parts and components sales within the aviation industry. The Company and its subsidiaries are also able to offer consulting services, marketing and appraisals to the aviation community. At present, the Company maintains offices and a fixed base operation including aviation hangars in Hickory, North Carolina, offices and inventory warehousing in San Antonio, Texas, and executive offices in Michigan.

The Company's plan for future growth and development will focus on the acquisition of aviation-related operating businesses and airlines that display the potential for restructuring into profitable and sustainable aviation-related growth concerns.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe," "expect," "intend," "anticipate," "project," or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) managing acquisitions and expansion of operations; (2) obtaining necessary financing and managing existing debt; (3) completing the investigation, acquisition and integration of new business opportunities; (4 complying with federal, state and local government and international regulations; and (5) other factors over which we have little or no control. Further information on potential factors that could affect River Hawk Aviation, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.

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