Automated Flight Information Reporting System Enters Commercial Service in China

Shanghai Airlines ("SAL") has reported to AMA that its second afirs(TM)-equipped Boeing 767 has completed a successful entry into service on February 4, 2009 The maiden flight of the first system was from Shanghai to Saipan on December 27th,2008, and afirs(TM) system performed flawlessly. The second installation was completed at the Boeing China Modification Facility in Shanghai. Mr. Ding Xing Guo, Vice President of Flight Operations for SAL stated, "It is very important that our crews have continuous voice contact with our operations center to support each flight. The afirs system provides that continuous contact with a quality and clarity of the voice communications that is crystal clear".

Mr. Xie Jin Yi, Director of the Operations Control Center ("OCC"), representing the Shanghai OCC dispatchers added, "With afirs, our dispatchers now have the ability to contact and update our pilots at any time no matter where the aircraft is at the moment. This is a valuable improvement in our operational control and flight watch capabilities".

In a related development, AMA announced that Civil Aviation Authority of China ("CAAC") has completed its review of the Verified Supplemental Type Certificates ("VSTCs") for the Boeing 757, which is operated by China Eastern Airlines, Air China, China Southern Airlines and other airlines in China.

The afirs(TM) installed on SAL aircraft are the first to enter revenue service under the agreement signed in 2006 between Sky Blue Technology Development Co., Ltd. ("Sky Blue") and AMA, whereby AMA has been contracted to provide AMA's patented afirs(TM) UpTime(TM) system to Sky Blue's customers (currently 515 aircraft), pending the necessary approvals. In the interim, VSTC approvals have been obtained by AMA from the CAAC for all Boeing 737 types and the 767 and Airbus A319, 320 and 321, with others pending. The VSTC is a mandatory requirement for installation of modifications on Chinese registered aircraft. The terms of the contract, as noted in our previous press release dated Aug 27, 2008 were as follows: the contract is for an 8-year term whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on up to 515 aircraft (with the possibility to increase it as the size of the carrier's fleet of aircraft increases). If AMA is able to install on all 515 aircraft and provide service for the full term of the agreement, the gross revenues to AMA under this agreement would be approximately $35,000,000 to the end of 2010 and annually approximately $15 million per year for the remainder of the contract term.

AMA also confirms that another current customer who provides services to the United Nations in Africa has added 2 additional aircraft to their fleet and extended their contract with AMA whereby AMA will provide AMA's patented afirs(TM) UpTime(TM) solution on these 2 additional aircraft. The total value of this extension for the 2 aircraft is in excess of $200,000 if the implementations occur on time and run for the full term of the contract.

About AeroMechanical Services, Ltd.

AeroMechanical Services, Ltd., provides proprietary technological solutions and services designed to reduce costs and improve efficiencies in the airline industry. The company has successfully commercialized three products and associated services currently marketed to airlines, manufacturers and maintenance organizations around the world. Its premier technology, afirs(TM) UpTime(TM), allows airlines to monitor and manage aircraft operations anywhere, anytime, in real-time. Its fuel management products and services are assisting aircraft operators in reducing fuel costs and greenhouse gas emissions.

    
    afirs, UpTime, FLYHT and aeroQ are Trade Marks of AeroMechanical Services
    Ltd.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.
    

Contacts

on AMS contact: Tom French
CGA
VP Finance & CFO
AeroMechanical Services Ltd
(403) 291-7427
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Bob Beaty
The Howard Group Inc.
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www.howardgroupinc.com