Avcorp Announces Private Placement.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 9, 2003

Avcorp Industries Inc. (TSX: AVP) (the "Company") wishes to announce that it is negotiating a Private Placement of up to 15,000,000 units at a price of $0.30 per unit, to raise gross proceeds of up to $4,500,000. Each unit will consist of one common share and one non-transferable share purchase warrant. Two share purchase warrants will entitle the holder thereof to purchase one additional common share of the Company at $0.35 per share for a six-month period. The proceeds of the financing will be used for general working capital purposes. A cash finder's fee will be payable, only with respect to arms length placees, in accordance with the rules and policies of the Toronto Stock Exchange. Subject to disinterested shareholder approval, insiders comprising Working Opportunity Fund (EVCC) Ltd., Coastal Industries Inc., Michael Scholz, John Nicholson, Paul Kalil and Edward Merlo may collectively subscribe for up to 10,000,000 units of the financing. The financing is subject to shareholder and regulatory approval.

Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for engineering design, manufacture and assembly of subassemblies and complex major structures for aircraft manufacturers.

Certain statements in this report and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following; (a) the extent to which the Company is able to achieve savings from its restructuring plans; (b) uncertainty in estimating the amount and timing of restructuring charges and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (I) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) pension plan income falling below current forecasts; (o) the Company's ability to maintain portfolio credit quality; (p) the Company's access to debt financing at competitive rates; and (q) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.

JOHN H. NICHOLSON, President and Chief Executive Officer