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Aviation Sales Company Announces Results of Note Exchange Offer and Rights Offering.

Business Editors


Aviation Sales Company (OTCBB:AVIO) today announced the results of its note exchange offer and rights offering.

The Company reported that the holders of $148,753,000 of the Company's old notes (90.1%) tendered their old notes in the note exchange offer. The tender of old notes constituting at least 80% of the old notes was a condition to the completion of the Company's note exchange offer. The Company also reported that its stockholders (including Lacy Harber, the Company's principal stockholder) subscribed to purchase 12.5 million shares of the Company's post-reverse split common stock in the rights offering, and that Mr. Harber, pursuant to his contractual obligation to purchase unsold allotments in the rights offering, will purchase the remaining 11.5 million shares offered in the rights offering. The note exchange and the rights offering are expected to close on Thursday, February 28, 2002.

The Company also reported that its previously announced one-share-for-ten-shares reverse split of its outstanding common stock will become effective at the opening of the market on Thursday, February 28, 2002. Further, effective at the same time, the Company's corporate name will change from "Aviation Sales Company" to "TIMCO Aviation Services, Inc." and the symbol for the Company's common stock on the Bulletin Board maintained by the NASD will change from "AVIO" to "TMAS."

Aviation Sales Company is a leading independent provider of fully integrated aviation maintenance, repair and overhaul (MR&O) services for major commercial airlines and maintenance and repair facilities. The Company currently operates four MR&O businesses: TIMCO, which, with its three locations, is one of the largest independent providers of heavy aircraft maintenance services in North America; Aerocell Structures, which specializes in the MR&O of airframe components, including flight surfaces; Aircraft Interior Design, which specializes in the refurbishment of aircraft interior components; and TIMCO Engine Center, which refurbishes JT8D engines. The Company also operates TIMCO Engineered Systems, which provides engineering services to our MR&O operations and our customers.

This press release contains certain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. A number of factors, including those identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2000 and those identified below, could adversely affect the Company's ability to obtain these results: the Company's ability to satisfy the conditions to its note exchange offer and rights offering, the Company's ability to continue to generate sufficient working capital to meet its operating requirements and service its indebtedness, the Company maintaining good working relationships with its vendors and customers, the Company's ability to achieve gross margins at which it can be profitable, including margins on services the Company performs on a fixed price basis, competition in the aircraft maintenance, repair and overhaul market and the impact on that market and the Company of the terrorist attacks on September 11, 2001, the Company's ability to attract and retain qualified personnel in its business, utilization rates for its MR&O facilities, the Company's ability to effectively manage its business, competitive pricing for the Company's products and services, economic factors which affect the airline industry, and changes in government regulations. Certain of these risks are described in the Company's filings with the Securities and Exchange Commission (SEC). Copies of the Company's SEC filings are available from the SEC or may be obtained upon request from the Company. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.
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Publication:Business Wire
Date:Feb 25, 2002
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