SOURCE: Viva International, Inc.

January 31, 2007 11:34 ET

Viva/Flight Test Associates Agree to Extend Time to Complete Acquisition

TRAVERSE CITY, MI -- (MARKET WIRE) -- January 31, 2007 -- Viva International, Inc. (OTCBB: VIVI) announced today that its plans to acquire the assets and business operations of Flight Test Associates, LLC of Tucson, Arizona in a transaction that will result in Viva issuing an 8% secured subordinated promissory note for $2 million have been extended pursuant to an agreed letter of intent that was mutually executed by Viva and Flight Test on January 30, 2007. The agreement that was originally scheduled for completion and closing on December 31, 2006 is now scheduled to be completed on or before March 31, 2007.

Flight Test Associates, LLC (FTA) was organized in 2001 to meet demands created by a government requirement to modify A-37s for airborne intercept in Peru & Columbia. Currently, FTA develops prototype systems, performs systems integration and manned and unmanned aircraft modifications, as well as flight test and flight operations support services. In recent years, FTA has concentrated its efforts on the design and development of instrumented Aircraft Engine Test Stands as well as shifting its emphasis from operational training to engineering support for Pratt & Whitney engine development programs.

FTA and its affiliates generated revenues in excess of $3 million through the nine months ended September 30, 2006 and Company management has previously estimated that revenues for the entire 2006 year would be approximately $4 million. Company management has also forecast its expected revenues for 2007 to be $6 million.

Calvin Humphrey, Viva's Chairman & CEO, commented, "The agreement to extend the time frame to complete the acquisition of the assets and business operations of Flight Test Associates, LLC and its affiliated entities was needed to further identify all assets and business operations to be included in the transaction. Our Company is committed to this transaction and we have a mutual commitment of the Flight Test Group and its principal officers, James Paquette and Alex Wolfe. As we have been working towards a finalization of our agreement, I have been working closely with Flight Test, Jim and Alex in our pursuit of certain defense contract participation and other business development. My involvement further confirms that the acquisition of the assets and operations of Flight Test Associates will add a fundamentally strong subsidiary presence in a niche aviation-related industry to the Viva family. This acquisition combined with the recent agreement to acquire the assets of River Hawk Aviation clearly shows that new direction of Viva is well under way. I expect to continue to bring complementary and profitable entities into our holding company and will further explore various options to allow for the operation of our Caribbean corporate interests. In my opinion, the integration of Flight Test Associates as well as River Hawk Aviation into the Viva family of companies gives us unique market and contractual opportunities with major aviation suppliers that are intended to help us drive revenues and profits."

About Viva

Recently Viva International Inc. (Viva) agreed to purchase of the assets of River Hawk Aviation, Inc. (River Hawk). Prior to this, Viva was primarily dedicated to the formation and development of airlines along with the acquisition of aviation-related operating businesses and airlines that displayed potential for restructuring into profitable and sustainable aviation-related growth concerns. The Company's primary involvement was with two developmental-stage carriers in regional markets from hubs in Puerto Rico and Santo Domingo, Dominican Republic. Our hub in Puerto Rico was maintained through our subsidiary Eastern Caribbean Airlines Corporation and our hub in the Dominican Republic was maintained by Viva Air Dominicana, S.A. Each of these companies remain as subsidiaries of the Company and are being evaluated to determine the best course of action to return them to active operations.

The Company has now expanded its focus to also participate as an aviation parts and components supplier in the broader aviation industry, currently specializing in Saab and other commuter aircraft parts and components as well as a provider of consulting services, marketing and appraisals to the aviation community. At present, the Company maintains executive offices in Michigan.

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) our ability to obtain necessary financing and to manage existing debt; (3) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (4) our ability to successfully complete financing and due diligence under the River Hawk Asset Purchase Agreement; (5) the Company's ability to comply with federal, state and local government and international regulations; and (6) other factors over which we have little or no control. Further information on potential factors that could affect Viva International, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.

Contact Information

  • Contact:
    Viva International, Inc.
    (231) 932-7490