Avcorp Announces Restructuring.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Nov. 3, 1999--

Avcorp Industries(TSE:AVP.)

Avcorp Industries Inc. (AVP on the Toronto Stock Exchange) has restructured its operations by combining the three eastern Divisions, Metal Products, Composites and Proprietary Products, into one Division called the Integrated Products Division. Both the Laval and Granby, Quebec facilities will make integrated products and assemblies using metal, composite and plastic materials with most of the administrative functions being centralized in Laval. Some continued development of proprietary products will continue to be done in this Division.

In the west, with the completion of the design and development of components for the CRJ-700, the Company has decided to integrate the Engineering Division into the Aerostructures Division.

These actions have resulted in a reduction of both personnel and administrative costs in the quarter.

John Sandford, Chairman and CEO stated, "This restructuring will enable us to better focus on our core strengths, reduce costs, and streamline operations". We are confident that these steps will help to return us to profitability in fiscal 2000.

With this restructuring, together with other steps taken by the Company, the last quarter of fiscal 1999 will report a loss. The Company expects to release its 4th quarter results in mid-December after completing its annual audit, which is now underway.

Avcorp Industries Inc. is a Canadian aerospace industry and advanced technology manufacturer. The Company is a single-source supplier for design, fabrication and assembly of metal, composite and plastic components for global aerospace markets.