Avcorp Has Signed a Sale and Licensing Agreement.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 4, 1996-- Avcorp Industries Inc. (ME:AVP) announced today that it has signed a sale and licensing agreement with NMF Canada Limited to set up a shot peening process at Avcorp's Aerostructures Division in British Columbia. It is intended that the new process facility will be operational within four months.

Shot peening is a surface treatment process which is used to form metal and enhance its fatigue characteristics.

Ron Palfery, Vice President and General Manager of the Aerostructures Division said that "this is the first of the processes we have identified in Avcorp's Strategic Business Plan to bring in-house to reduce cycle times and reduce costs. We are very pleased to have reached this partnership with NMF Canada, the primary shot peening company in North America."

Cycle times will be reduced by three weeks giving the Company a 40 percent productivity improvement. This will reduce costs as well as eliminate the 6,000 mile airfreight charges currently incurred for every part that requires this process.

Avcorp, which also has its Metal Products and Composites Divisions in Quebec, has been a major supplier of aerospace components to the international aviation industry for over thirty years. It is a supplier on a number of aircraft programs including those of the Boeing Company, Bell Helicopter Textron, de Havilland, McDonnell Douglas, Canadair, Rockwell and Northrop Grumman.

Avcorp is a leading Canadian turnkey aerospace subcontractor with annual sales in excess of $35 million. Its 450 employees have been recognized as quality and productivity leaders in the industry and Avcorp was the winner of the 1994 Canadian Productivity Gold Award.

CONTACT: Avcorp Industries Inc.

Mr. Peter D. Jeffrey

President & CEO 

Executive Office

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