SOURCE: Weatherly Aircraft Company

January 27, 2010 11:40 ET

Weatherly Aircraft Acquires Equine Product Line

Weatherly Aircraft as Part of Its Diversification and Growth Plan Agrees to Acquire Established Equine Product Lines

ANZA, CA--(Marketwire - January 27, 2010) - Weatherly Aircraft Company (PINKSHEETS: WACF) announced today that, as part of its planned growth and diversification program, it had reached a definitive agreement to acquire certain equine product lines from California based Sports Prescriptions, Inc.

The product lines include Equi Wear™, Double Diamond Gloves™, Force Field Magnetics™ and Sports Rx™. The market for the products is directed towards apparel for the horse rider and various therapy products for horses. It is contemplated that the acquisition will be completed within the next 60 days however during the transition period, Weatherly's new subsidiary Equine Health Products, Inc., will immediately act as an exclusive distributor for the products.

The company intends, having completed an economic study, to relocate the majority of the manufacturing operations from Asia and India to the United States. The economic study concluded that by relocating manufacturing to the US inventories can be drastically reduced and the response time to customers greatly improved.

Richard Corline, President, stated, "We are extremely pleased with this acquisition as it is the first step of our planned diversification into the growing animal health products market. The equine industry alone contributes $39 billion in direct economic impact to the US economy and it has been estimated that the horse population has reached 9.2 million. We believe that our product range can achieve significant growth in our market segment. We have already seen a positive response from customers from our slogan 'Made in America by American Tax Payers' which emphasizes our planned production in the US."

In an unrelated matter the Company confirmed that management will continue their efforts to resolve the issues which have arisen regarding the FAA Type Certificate for the Weatherly Aircraft. The Type Certificate is a major asset of the Company and its ownership is being challenged by two third parties. Management, having taken legal advice on this matter, is of the opinion that it is the rightful holder of the TC as reflected by the FAA published register and intends to vigorously defend its position.


The company's entry into the equine products market, through its subsidiary Equine Health, Inc. represents the first phase of its, diversification into the animal health care market. The Equi Wear™ product line consists of a fully developed apparel line for the "English" style horse rider. The Force Field Magnetics™ product line consists of a range of bio-magnetic therapy products for both the horse and rider.

The equine product manufacturing industry is fragmented with the majority of manufacturers being family type businesses. The company believes the industry is ripe for consolidation and is aggressively pursuing other related acquisition opportunities.

The horse industry in the United States contributes $39 billion in direct economic impact to the US economy and supports 1.4 million jobs on a full time basis, according to a recent study released by the American Horse Council.

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.These forward-looking statements can be identified by terminology such as "will," "expects," "future," "intends," "plans," "believes," "confident" and similar statements. Among other things, quotations from management in this announcement contain forward-looking statements. Forward-looking statements involve inherent risk and this announcement contains forward-looking statements. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement.

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