AirLiance Materials Profitable in Second Year; Company Meets Financial Goals of Partners.

Business Editors

CHICAGO--(BUSINESS WIRE)--March 19, 2001

AirLiance Materials, the leading supplier of replacement parts and related value-added services to the air transport industry, today reported that it is operating at a profit after only its second full year of operation.

The company was created in 1998 by three of the world's major airlines -- United, Lufthansa Technik and Air Canada -- and has met the financial goals established by those partners including all net-profit objectives and inventory turn rates.

David Sisson, President and CEO of AirLiance, said, "Our unusually rapid transition from investment to return-on-investment has been due, in large part, to the initial vision that started the company. With the increasingly cost-competitive environment of the air transportation industry, AirLiance was simply a concept whose time had come."

Sisson added, "Our strong financial performance has also been a product of our unique airline operational heritage. It has given us a real edge in better answering our airline and air transport customer requirements. During the company's first two years, it has consistently invested in those sales support professionals exceptionally experienced in commercial aviation and backed them with cutting-edge technology and the most comprehensive on-site inventory to work from."

The most recent example of that on-going commitment to customer- centric technology is the recently released, upgraded e-commerce site which now includes easy-to-use on-line viewing of all relevant material certificates of its parts inventory. Because the added time required by the customer in securing all proper documentation can be time enhancive through traditional channels, airline and other customers have enthusiastically received the upgrading of the new system.

During the initial two years, the company also moved its worldwide headquarters into a new and larger facility on airport grounds in Chicago, and set up a global network of strategically located support facilities. The state-of-the-art, 187,000 sq. ft. headquarters facility was designed by AirLiance management specifically for the company's unique global aerospace requirements. Also during that period, the company became ISO 9002 certified.

Services the company has concentrated on and developed in the first two years include:

Material sales

Because of the company's distinct combination of expansive on-the-shelf inventory and advanced e-commerce technology, customers have instant access to one of the world's largest inventories of pre-owned parts. Additionally, the company's sophisticated logistic services allows AirLiance to traffic high-quality, traceable surplus inventory to and from airlines throughout the world.

Sourcing

If a customer requests a part that is not in stock, AirLiance Materials has the infrastructure and expertise to locate and procure the component quickly. The company's ability to find the exact part its customers need makes AirLiance Materials a logical source for all parts procurement needs.

Repair management services

AirLiance Materials has developed an extensive network of high-quality overhaul and repair sources, which meet the exacting quality standards of our partner airlines. Services to oversee and manage the repair processes of customer inventories are also available.

Parts exchanges

Exchange programs are custom-tailored to the needs of individual customers. Programs are in development to support all major MRO services.

Parts kitting

AirLiance has the ability and flexibility to design, procure and administer kit programs to meet specific customer requirements. Examples include complete aircraft phase checks, engine kits by module, and component level kits, including LRU replacement.

Currently, the airframes supported by AirLiance Materials include:

-- Airbus A300, A310, A319, A320, A321, A330, A340

-- Boeing B727, B737, B747, B757, B767, B777

-- Canadair CRJ

-- McDonnell Douglas DC-8, DC-9, DC-10, MD-11, MD-80

Engines supported by AirLiance Materials include:

-- General Electric CF6, CF34, CFM56 -- Pratt & Whitney JT3D, JT8D, JT9D, PW2000, PW4000 -- International Aero Engines V2500

For more information, please visit the website at www.airliance.com or contact Michael King at King Group, phone: [phone]; e-mail: [e-mail] or Kimberly Miller at AirLiance Materials, phone: [phone]; e-mail: [e-mail]