Long-Term Production Contract from FHI

Avcorp Industries Inc. (TSX: AVP) (the "Company", "Avcorp" or the "Avcorp Group") is pleased to announce that it has been awarded a long-term production contract with the Aerospace Company of Fuji Heavy Industries Ltd. ("FHI"), a tier-one supplier to major original equipment manufacturers ("OEM") of commercial and defence aircraft around the world.

Avcorp will produce complex composite structural components for FHI that will be assembled for the Boeing 787 center wing box.  Avcorp, which will produce the components from its Composite Fabrication facility located in Gardena, California, expects that production volumes will grow by as much as 50% over historical supply rates.

"The contract award with FHI is significant on a number of levels," said Mr. Peter George, CEO of Avcorp Industries.  "First, it transitions our role with FHI from being a supplier with short-term purchase orders to one with a long-term contract for complex composite components for the Boeing 787 platform.  Second, it extends our reach within the Boeing supply chain by complementing our long-standing relationship with the OEM. Both developments are due to our growing reputation as a quality supplier and to the recent investments we have made towards developing expertise in the manufacture of complex composite materials."

As a result of the contract award, Avcorp's order backlog is currently estimated at $901 million. The new total reflects the cumulative net effect of recent production deliveries as well as the addition of production contract with FHI.