Avcorp ceases litigation with Bombardier over Termination for Convenience - amended

 Avcorp ceases litigation with Bombardier over Termination for Convenience -

PR Newswire

VANCOUVER, Jan. 25, 2013

Common Stock Listed
Trading Symbol: AVP

VANCOUVER, Jan. 25, 2013 /PRNewswire/ - Avcorp Industries Inc. ("Avcorp" or
the "Company") announces today that it has ceased any and all litigation
against Bombardier Inc. ("Bombardier") which was commenced in 2010 by the
Company in the Superior Court of Quebec, in connection with the termination by
Bombardier of production work relating to the CRJ700 aircraft program. The
Company and Bombardier agreed that each will be responsible for their
respective costs and Bombardier has not paid any consideration to Avcorp to
dismiss the case. Avcorp is actively pursuing participation in Bombardier's
supply chain for several of Bombardier's programs. The Company currently
produces components for the Bombardier Challenger 605 and Challenger 850
business jets as well as composite floorboards for the CRJ, Q400, and Learjet
programs. The Company looks forward to continuing its valued relationship as a
supplier to Bombardier, the leading Canadian aerospace manufacturer.

About Avcorp

Avcorp designs and builds  major airframe structures for  some of the  world's 
leading aircraft  companies, including  BAE Systems,  Boeing, and  Bombardier. 
With more than 50 years of experience, over 400 skilled employees and  354,000 
square feet  of  facilities in  Delta  BC  and Burlington  ON,  Avcorp  offers 
integrated  composite   and   metallic   aircraft   structures   to   aircraft 
manufacturers, a  distinct  advantage in  the  pursuit of  contracts  for  new 
aircraft designs,  which require  lower‐cost, light  weight, strong,  reliable 
structures.  Our  Burlington  location  also  offers  composite  repairs   for 
commercial aircraft. Avcorp is a Canadian public company traded on the Toronto
Stock Exchange (TSX:AVP).



Forward-Looking Statements

This management discussion and analysis should be read in conjunction with the
Company's audited financial statements. Certain statements in this report and
other oral and written statements  made by the Company  from time to time  are 
forward-looking statements, including  those that  discuss strategies,  goals, 
outlook or  other  non-historical  matters;  or  projected  revenues,  income, 
returns or  other financial  measures. These  forward-looking statements  are 
subject to risks  and uncertainties that  may cause actual  results to  differ 
materially from those contained in  the statements, including the  following: 
(a) the ability of the Company to renegotiate its debt agreements under  which 
it is in  default; (b)  the extent  to which the  Company is  able to  achieve 
savings from its restructuring plans; (c) uncertainty in estimating the amount
and timing  of  restructuring  charges  and  related  costs;  (d)  changes  in 
worldwide economic and political conditions  that impact interest and  foreign 
exchange rates;  (e)the  occurrence of  work  stoppages and  strikes  at  key 
facilities of  the  Company  or  the Company's  customers  or  suppliers;  (f) 
government funding and program approvals affecting products being developed or
sold under  government  programs;  (g) cost  and  delivery  performance  under 
various program and development contracts; (h)the adequacy of cost  estimates 
for various customer  care programs  including servicing  warranties; (i)  the 
ability to  control  costs  and  successful  implementation  of  various  cost 
reduction programs; (j) the timing of certifications of new aircraft products;
(k) the  occurrence of  further downturns  in customer  markets to  which  the 
Company products are sold or supplied  or where the Company offers  financing; 
(l) changes in aircraft delivery schedules or cancellation of orders; (m)  the 
Company's ability  to  offset, through  cost  reductions, raw  material  price 
increases and  pricing pressure  brought  by original  equipment  manufacturer 
customers; (n)  the availability  and  cost of  insurance; (o)  the  Company's 
ability to maintain portfolio credit quality; (p) the Company's access to debt
financing at competitive rates; and  (q) uncertainty in estimating  contingent 
liabilities and establishing reserves tailored to address such contingencies.

SOURCE Avcorp Industries Inc.


Contact:Sandi DiPrimo, Investor Relations Contact 604-587-4938
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