Aviation Group Inc. Announces $1.6MM Acquisition of General Electrodynamics Corporation.DALLAS--(BUSINESS WIRE)--Aug. 13, 1998--Aviation Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AVGP AVGP Armored Vehicle General Purpose AVGP Asociación Valenciana de Gestión Pública (Spanish: Valencian Association for Public Management; www.uv.es/avgp) ) announced today that it has reached agreement to acquire General Electrodynamics electrodynamics, study of phenomena associated with charged bodies in motion and varying electric and magnetic fields (see charge; electricity); since a moving charge produces a magnetic field, electrodynamics is concerned with effects such as magnetism, Corporation, a Texas-based leader in the manufacture of aviation and industrial scales. The acquisition of GEC GEC Gaseous Electronics Conference GEC Gigabit EtherChannel GEC Geriatric Education Center (US government; HRSA) GEC General Electric Co. GEC Google Earth Community (online community) is the second acquisition this year for Aviation Group's Component Overhaul & Service Division. On March 23, 1998, the Company acquired Aero Design Inc., a profitable Tennessee-based manufacturer of aircraft batteries for the commercial airline industry. The purchase price of GEC was $1,600,000, which included $327,000 in Aviation Group common stock at $3.03, plus the assumption of certain debt. The acquisition will be accounted for as a purchase, and current management will remain. GEC is the world market-share leader in the manufacture and sale of precision scales used for weighing aircraft during their required maintenance and repair procedures. The profitable company is 42 years old, and sells its products to major airlines and maintenance companies around the world. GEC also manufactures scales for industrial and highway inspection use, and certain build-to-print electronic components for the U.S. government. Revenues for 1997 exceeded $5,000,000. "We are thrilled with the quality and upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar of GEC for our Component Overhaul & Service Division. GEC has an excellent industry reputation and customer base, is the market niche leader, and continually updates its product technologies for future growth and expansion," said Lee Sanders, Aviation Group CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "GEC meets our stringent criteria for acquisition; existing profits, strong management, and the opportunity to thrive in a niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. ," added Sanders. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Sanders, there are "thousands" of independently-owned providers of products and services to aircraft manufacturers and airlines. "Though their profits and potential are significant, small to mid-market companies seldom attract the buyers among the major aviation and aerospace corporations. The trend toward market/vendor consolidation is increasing, and Aviation Group will continue to take advantage of opportunities to acquire companies of the quality and size of GEC and Aero Design at favorable multiples," said Sanders. Aviation Group is a publicly traded holding company based in Dallas. Aviation Group operates world-class painting facilities through its Pride Aviation and Tri-Star Aircraft Services divisions in New Iberia New Iberia, city (1990 pop. 31,828), seat of Iberia parish, S La., on Bayou Teche, which is connected to the Intracoastal Waterway by a canal; inc. 1836. It has printing and publishing, and its manufactures include oil- and gas-drilling equipment, fabricated steel, , La., and Portland, Ore. Through its Tri-Star Airline Services division, Aviation Group provides airline ground services to a variety of passenger and freight airlines at airports located across the United States. The Company's Fixed Base Operations and Airport Management division, through Casper Air Service, provides fuel parts, and light maintenance services to general, corporate, and freight aircraft customers. Additional information can be obtained from the Company's Web site at www.aviationgroup.com. This press release contains statements that constitute forward-looking statements, as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that may cause or contribute to such differences include, among other things, the Company's dependence on one customer, changes in the airline travel industry, seasonality of the Company's painting business, risk of future losses from operations, the ability to make additional business acquisitions, uninsured casualty losses, environmental regulation of airline stripping and painting operations and increased competition in the airline services industry. Other risks and uncertainties include changes in business conditions and the economy in general, changes in governmental regulations, unforeseen litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risk factors identified in the Company's SEC filings under "Risk Factors." The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this press release.
CONTACT: Aviation Group Inc., Dallas
Lee Sanders, 214/922-8100
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