News For Immediate Release July 14, 2006 PROVINCIAL AEROSPACE AWARDED US$100 MILLION INTERNATIONAL CONTRACT St. John’s, NL Provincial Airlines Limited, a subsidiary of Provincial Aerospace Ltd., today signed an agreement with the Dutch government valued at more than US$100 million. The company will provide air reconnaissance aircraft and operations in the Netherlands Antilles and Aruba for ten years. “This is a major accomplishment and significant milestone for our company,” said Brian Chafe, Provincial Aerospace’s Chief Operating Officer. In the fall of 2003 the Dutch government announced the phase out of its P3C-Orion Maritime Patrol Aircraft fleet, including two aircraft stationed at Curaçao that flew missions for the Coastguard Netherlands Antilles and Aruba. Following a highly structured two-year procurement process, Provincial Aerospace has been awarded a contract that includes the design, modification, integration and operation of two Canadian built Bombardier Dash-8 long range aircraft. Provincial Aerospace used its depth of experience in surveillance operations and in aircraft design, modification and integration to present a solution that addressed all stated requirements as well as a number of creative additional features that were accepted in the final agreement. The aircraft and crews will be tasked to save lives at sea, track down offenders on environmental, economic, and fisheries matters, and intercept drug transports in the Caribbean area. Provincial Aerospace is a St. John’s, NL based aerospace and defence contracting company with over 25 years of experience in air reconnaissance operations. With approximately 600 employees the privately owned company is one of the largest in the province. As well as its headquarters in St. John’s, which comprises four facilities with over 160,000 sq. ft., the company has bases in Goose Bay, Halifax, and Comox, B.C., and stations at 14 airports across the country. It also maintains international bases in Barbados, Trinidad and Tobago, and, beginning with this contract, Curaçao. A key contributing factor in Provincial Aerospace’s success has been its 20-year strategic partnership with the Department of Fisheries and Oceans, which has enabled the company to test, evaluate and implement new technologies and systems in a challenging operational environment. This has allowed the company to develop its capabilities and stay on the leading edge of the air surveillance industry. “We are very pleased that experience developed in our Canadian fisheries conservation and protection program has enabled a Newfoundland and Labrador company to succeed in developing an international business and be recognized as a leader in their field,” stated Hon. Loyola Hearn, Minister of Fisheries and Oceans and Minister Responsible for Newfoundland and Labrador. All of the aircraft design, modification and integration will be carried out by Provincial Aerospace subsidiary Provincial Aviation Maintenance Services Inc., a company designated under Newfoundland and Labrador’s Economic Diversification and Growth Enterprises Program (EDGE). "Provincial Aerospace Limited is a cutting-edge company that has continuously proven itself as a dynamic force in the global aerospace industry," said Trevor Taylor, Minister of Innovation, Trade and Rural Development. "Through the attainment of this contract, Provincial Aerospace is increasing its worldwide presence while globally promoting our province's capabilities in this progressive sector." This new contract will add approximately 75 new full-time technical and professional jobs to Provincial Aerospace’s workforce. “This significant win is attributable to the skill and ability of our people at Provincial Aerospace – it is through their commitment to quality, innovation and client service that the company has become globally recognized as having the capability to carry out a major international air reconnaissance program such as this,” said Chafe. http://www.mindef.nl/actueel/nieuws/2006/07/20060714_havilland.aspx - 30 - For further information contact: Keith Stoodley Senior Vice President - Marketing and Sales Email: kstoodley@provair.com Tel: (709) 693-2972 Fax: (709) 576-1802