AVCORP INCREASES BELL HELICOPTER WORK.

VANCOUVER, B.C.--(BUSINESS WIRE)--JUNE 5, 1995--AVCORP INDUSTRIES INC. (ME:AVP) Avcorp Industries Inc. has announced it has received new contracts and extensions to existing agreements from Bell Helicopter Textron valued at over $2 million dollars.

Most of the new work will be undertaken at the Aerostructures Division in Richmond BC with other new components being manufactured at the Metal Products plant in Laval, Quebec.

The major work represents a new contract for Bell Helicopter's Bell 230 and Bell 430 models and involves firewall manufacture and assembly. Other work will include access door production for the Bell 430 and sheet metal components for the Bell 407 aircraft.

Ran Palfery, Vice president and General Manager of the Aerostructures Division sees these contracts as an important announcement for Avcorp.

"Avcorp has enjoyed a long relationship with Bell through its Metal Products Division. As part of Avcorp's diversification program, it was an important step to grow that relationship to other Company divisions and show that, as an integrated company, our quality control, innovation, and customer service is at the highest level throughout our organization," he said.

Palfery sees the next two years as very exciting for Avcorp. "We are moving into new areas of products, and having already done a good job on getting our costs down and productivity up, I see continuing growth for our Division and the Company as a whole," he said.

Avcorp, which also has operating Divisions in Granby and Laval, Quebec, has been a major supplier of aerospace components to the international aviation industry for over twenty years.

Avcorp is a leading Canadian turnkey aerospace subcontractor with annual sales in excess of $25 million. Its 300 employees have been recognized as quality and productivity leaders in the industry and Avcorp was the winner of the 1994 Canadian Productivity Gold Award.

The Aerostructures Division manufactures aerospace structural components from metal and composite materials for its major customers, including Canadair, de Havilland, Boeing and McDonnell Douglas. A significant portion of the Division's sales are from components such as the horizontal stabilizers fro both the Canadair Challenger and Regional Jet, for which the detailed design was completed by the Engineering Division.

The Engineering Division design team provide project and liaison engineering services to both Avcorp Divisions and direct to customers. The Division is actively involved in the search for and evaluation of new product opportunities being pursued to enhance the Company's current and future operations through diversification and value added production.

The Composites Division, located in Granby, Quebec, specializes in the manufacture of composite, plastic and transparency components made from acrylic and polycarbonate, for the aerospace and transportation industries. In transparencies, the Division manufactures a wide variety of parts including cabin windows, landing light lenses, wing tip lenses, and fighter and trainer aircraft canopies. The composite component fabrication products include cabins, nose and tail cones, foam tank systems, cockpit glareshields and radomes.

The Metal Products Division, located in Laval, Quebec, manufactures detailed metal components and welded assemblies for the aerospace industry. It is a supplier on a number of aircraft programs including Bell Helicopter's 206B-3 Jetranger, de Havilland's Dash 8, The Boeing Company's B-737, and CAE's simulator base frame.

CONTACT: Mr. Peter D. Jeffrey

President & CEO

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