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Tue, Nov 27, 2007

Cessna Will Build SkyCatcher LSA In... China

SAC To Assemble Plane From Cessna Blueprints

ANN REALTIME REPORTING 11.27.07 2100 EST: Tuesday was a busy day for Cessna... as in addition to buying an aircraft company, the planemaker also announced it will partner with a Chinese manufacturer to build its upcoming Model 162 SkyCatcher light sport aircraft.

As ANN reported, Cessna announced earlier this week it would look overseas to build the SkyCatcher -- as manufacturing the lower-cost aircraft in the United States would be cost-prohibitive. Moments ago, Cessna told ANN it will partner with Shenyang Aircraft Corporation (SAC), a subsidiary of the government-owned China Aviation Industry Corporation I (AVIC I) consortium of aircraft manufacturers, to produce the LSA.

Cessna CEO Jack Pelton made the announcement Wednesday in China, during a signing ceremony at the Great Hall of the People in Beijing.

"The LSA market demands the latest avionics, safety and reliability, light-weight equipment and a competitive price tag," Pelton said.

"Our solution is to partner with SAC, a company with excellent facilities, state-of-the-art technologies and a workforce highly experienced in aircraft manufacturing. SkyCatcher customers will get an advanced design, high-quality workmanship and world-class product support, all at an affordable price from Cessna, a brand known and trusted worldwide."

Cessna will design the aircraft and handle ASTM compliance work, as well as provide on-site personnel to oversee manufacturing, quality assurance and technical design. SAC will be responsible for assembling the SkyCatcher.

"SAC greatly values the cooperation with Cessna, and sees Cessna as a significant partner in the general aviation segment. Since the start of the cooperation between the two companies that began in 2003, a good foundation has been established," said Mr. Luo Yang, Chairman and President of SAC.

"The communications and exchange of visits between the management of our two companies have strengthened the trust and understanding, which leads to today's signing of the Model 162 contract, making SAC the sole source supplier of this great airplane."

Mr. Lin Zouming, President of AVIC I added, "With the continual economic growth in China and the changes in China's policies for general aviation industry, AVIC I has placed strategic importance on general aviation development and will strongly support and promote the business."

Founded in 1951, SAC is a civilian and military aircraft manufacturer with 16,000 employees in Shenyang, China.

Boeing, Airbus, Bombardier, Spirit AeroSystems and Singapore Aerospace are just a few of SAC's clients... though Cessna is the first company to entrust SAC to build an entire aircraft.

"Through decades of joint production ventures and sub-assembly ventures with the industry's top manufacturers, SAC has emerged as the premier aircraft enterprise in China," Pelton said. "That experience and their outstanding facilities and production capabilities make them the perfect partner for us on the SkyCatcher program."

Cessna unveiled a proof-of-concept aircraft in July 2006 to gauge market response, then announced in July 2007 that it would proceed with development of an LSA, dubbed the Cessna 162 SkyCatcher. An introductory price of $109,500 will hold for the first 1,000 orders and then increase to $111,500.

The planemaker says it is approaching 900 SkyCatcher orders. First flight of the prototype SkyCatcher is set for the first half of 2008 and deliveries are expected to begin in the second half of 2009. Cessna expects to produce up to 700 a year at full-rate production.

FMI: www.cessna.com, www.avic1.com.cn/English/EnglishIndex.asp

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