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Fri, Dec 09, 2011

Canadian Firm Sued By Sierra Nevada Corp.

AeroMechanical Services Was Already Seeking Arbitration In Canada

AeroMechanical Services, Ltd ... a Canadian provider of proprietary technology to the airline industry under the brand name FLYHT ... said Friday it has learned that it has been named as a defendant in an action brought by Sierra Nevada Corporation (SNC) in the state of Utah, seeking damages for the non-payment of invoices totaling approximately $2,042,000 along with interest and costs. The claims are breach of contract, debt and unjust enrichment.

AMA says it had already started arbitration proceedings against SNC in the province of Alberta, will contest the jurisdiction of the Utah court, and will assert that Alberta is the convenient forum for the determination of both disputes. AMA had previously announced it had filed an application with the Court of Queen's Bench of Alberta against SNC seeking the appointment of an arbitrator as a result of the absence of progress regarding the outstanding accounts payable. AMA claims damages of $1,329,976 (US) and $2,650,000 (CDN).

AMA says it was working with Sierra Nevada on the development of the Automated Flight Information Reporting System (AFIRS) 228. AMA says that late in 2010 its management recognized progress was not on track, and was delayed and over budget, and moved development in-house. Since then, AMA says it has been attempting to resolve the issue with SNC, but in order to make progress, terminated the license and manufacturing agreement for material breach, and has asked the court to appoint an arbitrator. The court has appointed an arbitrator, and the appointment may be contested by SNC.

AMA says its premier technology, AFIRS UpTime, allows airlines to monitor and manage aircraft operations anywhere, anytime, in real time. If an aircraft encounters an emergency, AMA's triggered data streaming mode, FLYHTStream, automatically streams vital data, normally secured in the black box, to designated sites on the ground in real time.

FMI: www.flyht.com

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