Vector Settles Outstanding Litigation with Former Executive Officer

April 13, 2007 – Vector Aerospace Corporation (“Vector”) announced today that it has agreed to a settlement with Mark Dobbin (a former executive officer of Vector until November 2003) in the context of the previously disclosed litigation commenced by Mr. Dobbin and two other former executive officers of Vector (Paul Conway and Maxwell Parsons) against Vector and one of its subsidiaries seeking termination payments and benefits under their employment arrangements. The litigation has been vigorously defended and a counterclaim was issued.

After reviewing the proceedings to date, Vector and Mr. Dobbin have agreed to a final settlement of their respective claims against each other. The final settlement reached involved a settlement payment of $5,200,000 to Mr. Dobbin. Vector currently has booked reserves to cover the payment of the latter amount and, accordingly, the payment will have no affect on its earnings from continuing operations before income taxes.

The litigation involving Messrs. Conway and Parsons continues and is not affected by the above settlement.

Vector Aerospace Corporation is an independent provider of aviation repair and overhaul services. Through facilities in Canada, the United States and the United Kingdom it provides services to commercial and military customers for various types of gas turbine engines, components and helicopter airframes. It also provides information technology solutions to an international customer base. Principal operations include Atlantic Turbines, Sigma Aerospace, ACROHELIPRO Global Services and Pathix. The Company has approximately 1,100 employees.