Pemco Aeroplex Rolls First KC-135 into Upgraded Hangar

    Business Editors

    BIRMINGHAM, Ala.--(BUSINESS WIRE)--Feb. 22, 2005--A ribbon-cutting ceremony was held yesterday at Pemco Aeroplex to officially open the newly renovated and upgraded hangar Bay Two at the company's airport facility. An Air Force KC-135, the in-flight refueling tanker, was "rolled-in" the upgraded bay as Pemco executives, members of Alabama's Congressional delegation, community officials and several hundred employees watched. Pemco Aeroplex performs maintenance on military aircraft for the United States Air Force, Navy and Coast Guard and is a subsidiary of Pemco Aviation Group (NASDAQ: PAGI).
    Improvements to Bay Two included new lighting, making the bay three to four times brighter than in the past; new paint and new floor coating. Additional updating and modernization have occurred over the past few months, making these improvements the first significant upgrades to the inside of the hangars in the 50 plus year history of the facility. The roof on the facility was repaired and replaced in 2001.
    The work on the facility was handled and completed by Alabama companies and their employees. GulfAtlantic Floor Systems in Madison, Alabama, refurbished and coated the floor, and Birmingham-based Vulcan Painting and Haymaker Electric handled the painting, lighting and electrical upgrades.
    Senator Jeff Sessions was on-hand for the roll-in and addressed the employees and guests who attended yesterday's event. "I am pleased to stand in front of Pemco Aeroplex to celebrate these improvements. The commitment that Pemco has made to Birmingham - and to all of Alabama - is tremendous and I look forward to seeing this company grow. I'm also very proud of the highly-skilled workers who make Pemco a world class leader in aircraft maintenance services."
    Senator Sessions also made special mention of the Alabama companies and contractors who worked on this project. "It is encouraging that Pemco had the foresight to call on fellow Alabamians to upgrade this facility. This project was not only important for the Pemco employees, it was important to the contractors who maintained their jobs by making the improvements to this facility."
    The improvements to the facility make the hangar brighter, quieter and less fatiguing for employees. Several hundred employees will work in the upgraded hangar where they perform programmed depot maintenance on the Air Force KC-135. Mr. Ronald A. Aramini, President and CEO of Pemco Aviation Group, Inc., also spoke at the ceremony and explained the reason for the renovations. "In today's marketplace, you must stay ahead of your competition. Fortunately we have always been able to provide quality work in a timely manner for our customers. But these renovations will allow us to be even more competitive in the years to come."
    Glenn Hess, President of Pemco Aeroplex added, "Today begins a new era for Pemco Aeroplex. It signifies our commitment to our customers and our employees. It demonstrates that we are modern, advanced, dedicated and that we want to remain the very best in this industry."
    Future upgrades and additional facility improvements will depend greatly on new business; however, Mr. Hess believes that those renovations will happen over time. "Our initial response has been overwhelming - both from our employees and our customers. We believe this is an investment in our future and - as we continue to grow and gain business - our customers will notice not only a renovated hangar but a revitalized company."
    Pemco Aviation Group, Inc., with executive offices in Birmingham, Alabama, and facilities in Alabama, Florida, and California, performs maintenance and modification of aircraft for the U.S. Government and foreign and domestic commercial customers. The company also provides aircraft parts and support and engineering services and develops and manufactures aircraft cargo systems, rocket vehicles and control systems, and precision springs and components.
    This press release contains forward-looking statements made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by their use of words, such as "believe," "expect," "intend" and other words and terms of similar meaning, in connection with any discussion of the Company's prospects, financial statements, business, financial condition, revenues, and results of operations or liquidity. Factors that could affect the Company's forward-looking statements include, among other things: negative effects arising from the Company's previously announced investigation and restatement; changes in global or domestic economic conditions; the loss of one or more of the Company's major customers; the Company's ability to obtain additional contracts and perform under existing contracts; the outcome of pending and future litigation and the costs of defending such litigation; financial difficulties experienced by the Company's customers; potential environmental and other liabilities; the inability of the Company to obtain additional financing; regulatory changes that adversely affect the Company's business; loss of key personnel; and other risks detailed form time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2003. The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company does not undertake any obligation to update or revise any forward-looking statements and is not responsible for changes made to this release by wire services or Internet services.

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CONTACT: Pemco Aviation Group, Inc. Doris Sewell, 205-510-4935

KEYWORD: CALIFORNIA ALABAMA FLORIDA INDUSTRY KEYWORD: TRAVEL AEROSPACE/DEFENSE GOVERNMENT AIRLINES TRANSPORTATION SOURCE: Pemco Aviation Group, Inc.

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