07/24/03
Airliance Materials' Partners Extend Exclusivity Agreement

Company Remains Exclusive Surplus Provider and Preferred Supplier of Other Parts and Material Management Services for All Partners

CHICAGO, IL (July 24th, 2003) - AirLiance Materials has announced that its original founders, United Airlines, Lufthansa Technik and Air Canada, have all extended their exclusivity agreements with the company. Under the terms of the agreement extensions, AirLiance remains the exclusive distribution channel for each of the partner airline's excess engine and airframe inventories as well as the preferred supplier of other parts and material management services. Through this agreement extension, the partners are seeking to better meet the current industry conditions and prepare for what they see as the inevitable turnaround by providing the structure for AirLiance to work closely with each of the organizations to better balance inventories and further reduce cost of operations through innovative parts procurement and logistics programs.

In addition to providing internal cost and infrastructure savings, AirLiance has become an additional revenue stream for its airline partners by quickly rising to become a leading supplier of replacement parts and related value-added services to the air transport industry in general. According to David Sisson, President & CEO of AirLiance, "Because of our innovative approach, operational heritage, and extensive on-site inventory, we've been able to offer significant cost savings and logistics advantages to partners and non-partners alike. As a result, AirLiance began operating at a profit after only its second full year of operation and has met the financial goals established by our partners including all net-profit objectives and inventory turn rates."

Roscoe Musselwhite, Executive Vice President of AirLiance, added that, "There are significant advantages to our business approach for our global customer base. Typically, we can save a non-partner airline 30% on a given part, and play a significant role in reducing the overhead associated with keeping a fleet well maintained. As you might expect, due to our significant integration, we're even more effective in helping optimize spares provisioning for our partners."

It is commonly acknowledged by industry insiders that the company's combining of extensive on-site inventory with advanced quality, e-com and documentation systems have removed many of the traditional barriers to purchasing pre-owned inventory. In addition, the company offers a wide range of supply chain related aircraft products and services for its customer airlines and maintenance repair organizations. These products and services include material sales, sourcing, repair management services, parts exchanges, parts kitting, AOG and Just-In-Time services.

Created for airlines, by airlines, AirLiance Materials is the exclusive supplier of high-quality, traceable, surplus parts from three operators to the global air transport industry. The company operates 24 hours a day, seven days a week. Headquartered in its 187,000 sq. ft. facility, AirLiance Materials is located at O'Hare International Airport in Chicago. The company offers its products and services through an international network of offices around the world and their e-commerce site www.airliance.com.

For more information, please contact Michael King at King Group, phone: 805-462-3000, e-mail: mking@kinggroup.com or Kimberly Miller at AirLiance Materials, phone: 847-233-5828, e-mail: kimberly.miller@airliance.com.

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