UK acquisition closes global growth platform for Vector Aerospace

April 1, 2008 – Vector Aerospace Corporation announced today that its wholly-owned subsidiary, Vector Aerospace International Limited, has completed the acquisition of the United Kingdom Ministry of Defence (MOD) Defence Aviation and Repair Agency (DARA) Rotary Wing and Components businesses for consideration of £17 million. The assets acquired include net working capital of £13.5 million.

The Fleetlands Rotary business, which provides maintenance, repair and overhaul support for the MOD Chinook (CH-47), Lynx and Sea King helicopters, will be renamed Vector Aerospace Helicopter Services Fleetlands. The Almondbank Components business, which provides maintenance, repair and overhaul and component support for these and other helicopter and fixed wing platforms within the United Kingdom, both for MOD and other customers, will be renamed Vector Aerospace Component Services Almondbank.

The acquisition expands Vector’s customer base, provides access to new markets in the defence sector, adds maintenance, repair and overhaul (MRO) skills and capabilities and offers potential to build a European centre of excellence in helicopter maintenance.

The unaudited revenue of the DARA acquired business for the twelve months ended March 31, 2008 as indicated by the seller is approximately £80 million (Cdn $160 million). The acquisition is expected to make positive earnings contributions to Vector for the balance of 2008. It is management’s objective that operating margins of the acquired businesses will be consistent with Vector’s overall results after an integration period. This integration is expected to take eighteen to twenty four months. and is expected to involve various cash outlays.

“The servicing of helicopter structures, components and engines is a core competency for Vector. We have a breadth of MRO capabilities within our Canadian rotary wing division, including military helicopters”, said Donald Jackson, Chairman, President and Chief Executive Officer of Vector Aerospace Corporation. “The DARA facilities offer a significant opportunity to extend our core expertise in helicopter maintenance and military service across our existing and newly acquired business units and to add value for our customers.”