Pemco World Air Services, Inc. and Wagner Aeronautical, Inc. Sign Agreement for 727 Cargo Conversion.

DENVER--(BUSINESS WIRE)--May 24, 1999--

Mr. David Lagger, Vice President of Pemco World Air Services, a subsidiary of Precision Standard, Inc. (PCSN), announced today that Pemco World Air Services, Inc. (PWAS) and Wagner Aeronautical, Inc. have signed an agreement to jointly design product improvements for the Pemco 727 passenger to freighter modification resulting in the rectification of the conversion.

Completion of the design effort is slated for August 1999.

Separately, First Engineering (a wholly owned PWAS subsidiary) has received FAA approval on an alternate method of compliance (AMOC) covering the provisions of airworthiness directive AD 98-26-21 issued on the 727 freighter aircraft. This AMOC allows owners of Pemco modified aircraft to operate with side restraints installed without incurring substantial weight penalties.

Both developments represent material steps toward continuing our support of the Pemco 727 passenger to freighter conversion program.

Precision Standard, with executive offices in Denver, Colorado, and facilities in Alabama, California, and Florida, performs maintenance and modification of aircraft for the U.S. Government and foreign and domestic commercial customers. The Company also provides aircraft parts and support and engineering services and full service overhaul and repair for a wide range of engine nacelle-related needs. It also develops and manufactures aircraft cargo systems, rocket vehicles and control systems, and precision springs and components.