Kelowna Flightcraft Ltd. Announces Canadian Military Flight Training Contract.

KELOWNA, British Columbia -- Kelowna Flightcraft Ltd. is pleased to announce that they have been selected by the Government of Canada to operate the new Canadian Forces Contracted Flying Training and Support (CFTS) services program at Southport near Portage La Prairie, Manitoba. Kelowna Flightcraft will lead a team of Canadian companies collectively known as Allied Wings to provide flying training and support services to the Canadian Forces over a 22-year period. The CFTS contract is valued at over $1.77 billion and is in support of No.3 Canadian Forces Flying Training School in Southport and 17 Wing flying operations in Winnipeg.

"We are pleased to be selected by the Government of Canada to deliver primary flight training to Canada's Military and look forward to working with the Department of National Defence, Southport Aerospace Center, and the community of Portage La Prairie to deliver the best trained pilots graduating from the most advanced training equipment available," says Jim Rogers, General Manager for Kelowna Flightcraft.

Led by Kelowna Flightcraft, the Allied Wings team is a pan-Canadian effort in partnership with Canadian Helicopters (Edmonton and Montreal), Canadian Base Operators/Black and McDonald Limited (Toronto), Atlantis Systems International (Toronto) and Coastal Pacific Aviation (Abbotsford). Each member of the team possesses the expertise, experience, resources and skills in one or more of the critical areas required in creating and delivering the services under the new CFTS contract.

"The Allied Wings Team will deliver an exemplary product that will be an international showcase of flight training in which all Canadians can be proud," said Bill Weston, Deputy Contract Manager.

Allied Wings Facts:

- Combined, the Allied Wings team has over 3000 full time employees in over 35 locations in Canada from coast-to-coast, with annual revenues in excess of $600 million.

- The Allied Wings team trains more than 500 fixed wing and helicopter pilots per year in Canada.

- The Allied Wings team operates a combined fleet of over 200 fixed and rotary wing aircraft in Canada.

- The Allied Wings team currently operates three advanced ground training schools with state-of-the-art equipment covering initial and advanced fixed and rotary wing applications.

- The Allied Wings team currently operate major Canadian and U.S. military bases on a 'performance incentive fee' basis earning high marks for customer satisfaction.

- Allied Wings has extensive hands-on experience operating and maintaining the aircraft types that will be used under the new CFTS contract.

Kelowna Flightcraft Ltd is proud to head the Allied Wings team and stands ready to deliver training and support for the Canadian Forces.

Kelowna Flightcraft Background

Kelowna Flightcraft operates Canada's third largest airline; is an aircraft maintenance and manufacturing organization; is a transport Canada Design Approval organization (engineering); owns the type certificate for the Convair airplane, and is a Transport Canada approved Training Organization delivering training to a wide range of aviation companies. In operation since 1970, Kelowna Flightcraft is ISO 9001 certified and employs over 850 employees across Canada with our head office located in Kelowna, BC.

Kelowna Flightcraft's full service aircraft maintenance operations focus on heavy aircraft maintenance, overhaul, and modifications with major facilities in Kelowna, BC and Hamilton, Ont. This includes mechanical, structures, avionics, engine, painting & parts supply with a focus on B727, B737, B757, and Convair 480, 580 and 5800 stretch.

Kelowna Flightcraft's charter operations deliver freight and passengers 365 days a year across Canada and to international destinations utilizing B727's, Convair 580's and a B737.

For further information on the Contracted Flying Training and Support (CFTS) program: www.forces.gc.ca/cfts