Calgary, Alberta – August 17, 2011 — AeroMechanical Services Ltd. (TSX-V: AMA) (the “Company” or “AMA”) has signed a contract with a Middle Eastern Boeing 737 operator for the Automated Flight Information Reporting System (“AFIRS^TM“) 220.

The contract requires AMA to install the AFIRS 220 on two Boeing 737-300 aircraft serving the Middle East and North Africa.  This airline’s original interest in AFIRS was for satellite voice and flight following features only. Upon learning of the other AFIRS 220 capabilities, the airline will also utilize the engine trending, airframe and engine exceedances, and Out, Off, On and In times (“OOOIs”).

“The AFIRS 220 is a valuable solution for many airlines,” said Bill Tempany, Chairman and CEO of AMA. “The AFIRS 220 provides functions that offer a return on investment, operational improvement and increased safety for operators around the world.  We see this product providing strong value to our customers for many years to come.”

AMA will be providing equipment and services over a five year contract.  Installations are scheduled to begin before the end of the third quarter.  If AMA completes installation on all contracted aircraft and provides recurring service for the full term of the agreement, gross revenue to AMA will be approximately US$182,000, excluding optional services. AMA holds all the necessary certifications to provide services to this customer.

This disclosure as it relates to this agreement is subject to the following disclaimer:

When a contract is initially signed, the intended number of aircraft, pricing and potential installation schedules is agreed to by the parties. The actual installation schedules as well as the number and types of aircraft are often revised throughout the term of the agreement as the airline realigns its fleet of aircraft with its business requirements. Delays in installations can and do occur which can affect the total value of the contracts such that the revenues noted above may not be fully achieved. Fulfilment of the contract terms may also be affected if there are any changes to government statutes, regulations or rules of the applicable governing bodies. The contract terms and values disclosed herein are based on the original information available to AMA upon execution of the contract and are subject to change. For the actual revenue earned, please see AMA’s financial statements including its revenue recognition policy disclosed within the notes to the Audited Annual Financial Statements.

About AeroMechanical Services

AeroMechanical Services Ltd., under the brand name FLYHT^TM, provides proprietary technological products and services designed to reduce costs and improve efficiencies in the airline industry.  The Company has patented and commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, AFIRS™ UpTime™, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time.  If an aircraft encounters an emergency, AMA’s triggered data streaming mode, FLYHTStream™, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real-time.  The company has been publicly traded on the TSX Venture Exchange since 2003 under the trading symbol AMA.

AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of AeroMechanical Services Ltd.

Contact Information

AeroMechanical Services Ltd.
Thomas R. French, CGA
VP Finance and CFO
403-291-7427
tfrench@flyht.com

Barnes Communications Inc.
Colin Languedoc
Senior Consultant
416-367-5000 ext. 225
clanguedoc@barnesir.com

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