Aviation Capital Group Announces 2008 Recap.

NEWPORT BEACH, Calif. -- Aviation Capital Group today announced its 2008 full year and fourth quarter activities.

ACG completed 49 lease and sale transactions during the year. In the fourth quarter ACG announced 13 transactions: four purchases, four new leases, three extensions, and two aircraft sales. Aircraft were Boeing 737s, 767s, MD-83s managed for a third party, and the Airbus A320 family. The fourth quarter also was marked by the delivery of ACG's second new Airbus A330-200 for lease to Avianca Airlines. This is the second new A330 leased by ACG to Avianca; the first was delivered in the third quarter.

"ACG is in a very strong position as the aviation industry begins 2009," said R. Stephen Hannahs, group managing director and chief executive officer.

During 2008, ACG placed orders for 38 Airbus A320s and Boeing 737s (see below), bringing the backlog for all outstanding orders to 154, including 15 B737 positions acquired from an airline in 2006. ACG currently has one of the largest fleet of A320 and B737 families of the world's lessors. The orders support ACG's core market and business strategy of owning highly desirable and liquid aircraft.

"We are scheduled to take delivery of 13 new aircraft this year. We have access to significant capital through export credit agencies in the US and Europe, internally generated cash, bank facilities and other Capital Markets sources," Hannahs said. "We will be opportunistic for other aircraft transactions in 2009."

The deliveries this year are split between 10 Boeing 737s and three Airbus A320s.

The majority of ACG's current portfolio is on long-term leases, reflecting a stable lease stream.

"We take the long view in conservatively managing our business," says Hannahs. "This enables ACG to successfully operate through turbulent economic cycles and gives us the flexibility to carefully and prudently grow on a steady basis."

In addition to the fourth quarter transactions, ACG other 2008 activities include:

* Contracted to provide asset management services for a private equity manager owner of 20 aircraft;

* Announced orders for 25 shipsets of CFM-56 engine produced by CFM International. These will power Airbus A320 family aircraft and will have the latest Tech Insertion features to improve fuel burn, reduce emissions and lower maintenance costs;

* Announced orders for 25 shipsets of the V2500 engine by International Aero Engines that will power A320 family aircraft. All will be SelectOne versions to improve fuel burn, reduce emissions and lower maintenance costs;

* Announced an order for 23 Airbus A320 family aircraft;

* Announced an order for 15 Boeing 737 NG family aircraft;

* Invested in the Magellan Group, a leading aftermarket supplier of aircraft products and services and a specialist engine leasing and trading company;

* ACG also launched a redesigned Web site December 1, its 19th anniversary.

Aviation Capital Group is owner/lessor and portfolio manager of a diversified fleet of commercial jet aircraft leased to the world's leading airlines. Its portfolio includes 233 aircraft leased to 95 airlines in 41 countries with an additional 154 aircraft on order with Boeing and Airbus. ACG's Capital Markets Group also provides asset management and remarketing services to aircraft investors and institutional clients. ACG was founded in 1989 and is a wholly-owned subsidiary of Pacific LifeCorp, the parent company of Pacific Life Insurance Company. For more information, please visit www.aviationcapital.com.