Avcorp: Production Ramp Up To Impact 1999 Earnings.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--March 16, 1999-- Avcorp Industries(ME:AVP.) (TSE:AVP.) Avcorp Industries Inc. (the "Company") (AVP on the Montreal and Toronto Stock Exchanges) announced today that the success experienced by Bombardier on the CRJ-200 and the CRJ-700 programs has caused the Company to accelerate its production rates in a shorter period of time than anticipated, thereby causing the Company to incur certain up front costs which were not budgeted. The non-recurring costs associated with the CRJ-700 program are higher than anticipated and are currently under review. The Company is still facing some additional environmental costs associated with vacating the Richmond facility. As a result, the Company anticipates losses continuing for this quarter and next before returning to profitability in the final quarter. The Company made a strategic decision to invest in programs, develop expertise and product align itself thereby incurring substantial costs in order to secure a proprietary advantage for future business and remains committed to this approach.

Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for design, fabrication, and assembly of metal, composite and plastic components and is made up of five divisions: Aerostructures, Composites, Metal Products, Engineering and Proprietary Products.