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Thu, Mar 17, 2005

Adam Aircraft Announces New Plant

Manufacturing Facility To Be Located In Ogden, Utah, Bringing "Hundreds" Of Jobs

Adam Aircraft announced Wednesday it will open a manufacturing and assembly operation in Ogden, UT, bringing with it "hundreds" of aviation-related jobs. There was no immediate indication from the company, however, about when the plant would start hiring -- or when they might actually certificate an airplane.

ANN Note: The following statement was sent to us by Adam Aircraft... and based on past experience, we advise you to take it with a grain of salt.

The Adam Aircraft facility will be located at the Kemp Ogden Airport Gateway Center. The center is a new, forty-seven acre, state-of-the-art, business park, featuring a highly functional layout offering both air and groundside access. Kemp Development Company has worked closely with Ogden City and the State of Utah to create a business environment that is nationally competitive and supportive of aerospace manufacturing activities. Adam Aircraft is leasing twenty-two thousand square feet in the newly completed Kemp Jet Services terminal to manufacture and assemble A500 and A700 aircraft. To accommodate anticipated growth, Kemp will develop, by phases, new facilities for Adam Aircraft on adjacent sites.

"Our company is fortunate to have a backlog in excess of two years on both the A500 Centerline Twin and the A700 AdamJet," said Rick Adam, Chief Executive Officer of Adam Aircraft. "Ramping up production is a top priority and we believe Utah will be an excellent location for adding to our existing capacity in Colorado. The quality of the workforce in Utah, the capabilities of the airport facility, and the superior design of the Kemp development were key motivators in our decision process."

"This announcement is particularly gratifying because Adam Aircraft conducted a thorough review during its site selection process," said Utah Governor Jon M. Huntsman, Jr. "Adam Aircraft recognized that Utah has the skilled workers it needs to establish and grow its manufacturing and assembly operations."

According to the "Annual Industry Review & 2005 Outlook" published by the General Aviation Manufacturers Association, the aviation industry has created 25,000 aerospace manufacturing jobs within five years of the passing of the General Aviation Revitalization Act (GARA) in 1994. In addition, according to this report, "The U.S. Department of Labor estimates that for every aerospace manufacturing job created, three supporting jobs are also created."

With 430 employees and more than 100,000 square feet of facilities, Adam Aircraft will use the Gateway Center to parallel its ongoing business in Colorado. In anticipation of FAA Type Certification, Adam Aircraft has already begun manufacturing customer aircraft. There are currently five customer aircraft undergoing the construction process in Colorado, and with the help of the Ogden facility, the company plans significant production rate growth in 2005.

The A700 AdamJet, a contender in the closely followed Very Light Jet (VLJ) market, is the company's follow-on aircraft to the A500 Centerline Twin. The A700 uses carbon-fiber materials for the airframe and jet engines manufactured by Williams International. Adam predicts customer deliveries of the AdamJet will begin next year.

Final E-I-C Note: ANN strongly doubts that Adam can be delivering A700s next year... not when a conforming flight test vehicle has yet to be airborne and numerous problems are being reported about both the A500 and A700 certification program.

FMI: www.adamaircraft.com

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