Avcorp announces 2011 Second Quarter Results

Q2 2011 Report
August 10, 2011

VANCOUVER: Avcorp (AVP on the Toronto Stock Exchange) today announced its financial results for the quarter ended June 30, 2011.

During the quarter ended June 30, 2011, the Company recorded a loss from operations of $752,000 on $20,492,000 revenue, as compared to a $2,191,000 loss from operations on $18,710,000 revenue for the same quarter preceding year; and a net loss for the current quarter of $1,148,000 as compared to a net loss of $2,213,000 for the quarter ended June 30, 2010.

The Company has realized revenue growth during the second quarter 2011 relative to the same quarter in 2010 for most major structures deliveries; while customer demand for non‐original equipment manufacturers’ products and services has increased slightly.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were positive $258,000 for the current quarter compared to a negative EBITDA of $957,000 for the quarter ended June 30, 2010.

Cash flows from operating activities during the current quarter utilized $785,000 of cash resulting from working capital growth in support of increased revenues, as well as operating losses; as compared to providing $1,189,000 of cash during the quarter ended June 30, 2010. The Company has a working capital surplus of $10,897,000 as at June 30, 2011 (December 31, 2010: $1,493,000 surplus) and an accumulated deficit of $76,156,000 at June 30, 2011 (December 31, 2010: $73,564,000).

About Avcorp
Avcorp designs and builds major airframe structures for some of the world’s leading aircraft companies, including Boeing, Bombardier, and Cessna. With more than 50 years of experience, over 500 skilled employees and 354,000 square feet of facilities, 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. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).

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