Arizona Aircraft Spares to Receive $6 Million in Non-Dilutive, Non-Equity Funding.

Business Editors/Technology Writers

TUCSON, Ariz.--(BUSINESS WIRE)--Oct. 22, 2003

Arizona Aircraft Spares, Inc. (OTCBB:AZAA) -- one of the leading military aircraft spare parts manufacturers -- announced today it has signed a letter of commitment with Wolfe and Turner Investments to obtain a $6 million non-equity asset-backed loan. The loan would have a ten year term with a 25-year amortization schedule. AZAA is currently completing the due diligence phase and anticipates that funding will occur prior to December 1, 2003.

Arizona Aircraft Spares focuses on manufacturing state-of-the-art military aircraft parts and ground support systems for the United States Government, specifically the Air Force, Army and Navy and large U.S. prime contractors such as Boeing (NYSE:BA) and Northrop Grumman (NYSE:NOC).

"This is significant news to Arizona Aircraft Spares and its shareholders. This loan will enable AZAA to bid on even larger Department of Defense military spare parts contracts by demonstrating our financial ability to build the aircraft spare parts once the bid has been accepted," says Vito Peppitoni Chief Executive Officer of AZAA.

This asset-backed loan reflects AZAA's commitment to avoid additional dilution of its stock. The company intends to avoid equity based funding whenever possible.

"We believe this loan will provide a strong financial foundation to fuel AZAA's future growth. Furthermore, we intend to take advantage of the government's Progressive Payments program, where the company can collect up to 80% of the government contract's total value -- including built-in profits -- prior to the delivery of the ordered items. In other words, the U.S. Government could effectively bankroll our operations," states Peppitoni.

AZAA's market potential is measured in billions of dollars. The company works directly with the U.S. Government and other international free world governments. The proposed U.S. military budget alone is $399.1 billion of which twenty-five percent is allocated for spare parts and ground support systems.

AZAA will need to capture only .00037 percent of the market share of this years estimated $95 billion allocated for military spare parts and ground support systems to meet their projected sales revenue of $3.5 million and only .00048 in year 2008 to meet its five year sales projection of $53 million.

Mr. Peppitoni stated "The military aircrafts used by the Air Force today are now older than ever -- 23 years on average. Most B-52's are older than their pilots. They all require increasing amounts of ever more expensive and time-consuming maintenance. And, the Air Force will not build any new bombers for more than 10 years! As a U.S. Government approved military aircraft provider, Arizona Aircraft Spares is uniquely positioned to capitalize on these underlying market trends."

AZAA specializes in airframe structures and skins, sheet metal and machined parts, plastic formed parts, windows and canopies, small and large assemblies, electronics and communication products as well as bonded assemblies. For complete information, please visit AZAA's Web site at www.arizonaaircraftspares.com.

Safe Harbor Statement

Note: Certain statements in this news release may contain "forward-looking" information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. AZAA undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.