First Aviation Services IPO Closes; Completion of Offering Creates Worldwide Leader in Aviation Services.

STAMFORD, Conn.--(BUSINESS WIRE)--April 4, 1997--In a strategic move to capitalize on the growth and consolidation in aviation services, the principals of First Equity Group, Inc., a leading aviation industry investment firm, have completed a successful initial public offering of First Aviation Services, Inc. The company was officially listed on the Nasdaq national market on Feb. 28, 1997 under the symbol FAVS.

With estimated annual revenues of $150 million, First Aviation emerged from the public offering as a worldwide leader in providing services to aircraft operators of some of the most widely used military and general aviation engines. Subsidiaries of First Aviation include National Airmotive Corp. (NAC) of Oakland, Calif., a worldwide leader in the repair, overhaul and support of Allison engines, and Aircraft Parts International Combs (API Combs), a leading parts distributor based in Memphis, Tenn., which was acquired from AMR Services simultaneous with the closing of the public offering.

"First Aviation is well positioned to benefit from industry trends that favor specialized aircraft repair and overhaul providers," said Michael Culver, President and Chief Executive Officer of First Aviation. "These trends include an increase in aviation activity, as well as more outsourcing -- and use of remanufactured parts -- to reduce maintenance costs. Consolidation will also continue, spurred by customers seeking larger, more sophisticated and better capitalized value-added service providers."

A key component of First Aviation's strategy is to capitalize on consolidation trends within the industry by pursuing acquisitions of companies with a customer base, product line or technology which complements or expands existing operations. "We believe that strategic acquisitions will help us achieve our goal of providing total aftermarket support to our customers," said Culver. He added that First Aviation's competitive strengths lie in 30 years of remanufacturing and engineering experience, advanced technology, and an outstanding management team. "We're committed to using these strengths to provide total maintenance solutions for our clients," Culver said.

"The acquisition of API Combs is the first step in meeting our goal of participating in the consolidation of the aviation services industry," said Aaron Hollander, who will continue as a principal at First Equity Group, devoting a significant amount of time pursuing acquisition opportunities for First Aviation. "The acquisition expands our services into the general aviation market, including the corporate sector, allowing us to leverage NAC's repair, overhaul, and remanufacturing expertise by providing access to customers with smaller engine fleets, and at the same time will expand API Combs' geographic coverage." First Aviation used the proceeds from the offering to acquire API Combs and reduce outstanding debt.

First Aviation is a worldwide leader in providing services to aircraft operators of some of the most widely used military, and general aviation engines. Its operations include repair and overhaul of gas turbine engines and accessories, remanufacturing of engine components and accessories, and distribution of new and remanufactured parts. First Aviation is also one of the leading suppliers of aircraft parts to the general aviation industry in the United States, and will be headquartered in Westport, Connecticut.

CONTACT: Investor:

First Equity Group, Inc.

Aaron Hollander, 203/359-7733

or

Press:

Stanton Crenshaw Communications

George Sopko, 212/727-3300