Avcorp announces private placement of common shares.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 16, 1996--AVCORP INDUSTRIES INC. (MoSE:AVP) Avcorp Industries Inc. announced today that it has completed a private placement, with the Working Opportunity Fund (EVCC) Ltd. and a small group of existing investors, of 1,250,000 common shares at a price of $2.40 per share and of 900,000 warrants.

Each warrant is exercisable no sooner than six months after closing, and in whole or in part, any time up to the earlier of twenty-four months from closing or when the price of the Corporation's common shares has closed at $5.00 per share or greater for a period of not less than twenty consecutive days. During the first twelve months following the closing of the private placement the warrants are exercisable at $2.75 per common share, the $3.00 per common share thereafter.

In addition to the new equity, the Company has negotiated new credit facilities with the Royal Bank. These facilities include an increase in the operating line of credit, both a term and foreign exchange facility, and a reduction in interest rates. These facilities now provide the Company with credit lines of $10 million of which, prior to receipt of the new equity funds, less than $1 million was being utilized.

The net proceeds from the private placement of $3 million, increasing up to $ 5.7 million should the warrants be exercised, plus the new banking credit facilities, will be used for plant expansion in connections with Avcorp's current and budgeted growth.

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 four divisions: Aerostructures, Composite, Metal Products and Engineering.

CONTACT: Avcorp Industries Inc.

Mr. C.E. Butterfield

CFO and Secretary

604/278-9821

604/278-9618 (Fax)