TIMCO Aviation Services, Inc. Announces 2003 Results GREENSBORO, N.C., April 16 /PRNewswire-FirstCall/ -- TIMCO Aviation Services, Inc. (BULLETIN BOARD: TMAS) today announced its results of operations for the 2003 fiscal year. Revenue for the year was $243 million, a 33% increase over 2002 revenue of $182 million. The net loss for 2003 was $0.3 million ($0.01 per basic and diluted share), compared to net income of $7.0 million ($0.27 per basic share and $0.03 per diluted share) for 2002. The net loss for 2003 included a benefit of $3.7 million from the settlement of obligations and changes in estimates of exposures related to discontinued operations and various legacy items and a $0.8 million income tax benefit resulting from the IRS finalizing audits on the 1996 - 1999 tax years. Net income for 2002 included: (i) a $27.3 million gain resulting from forgiveness of debt as a result of the Company's February 2002 debt and equity restructuring, (ii) a net $4.4 million non-cash charge relating to the Company's agreement to settle a then-outstanding class action lawsuit and (iii) a $3.8 million tax benefit arising from a change in U.S. federal tax laws governing the carryback of net operating losses. Without the effects of these items, the Company would have reported a 2003 net loss of $4.8 million, compared to a net loss of $19.7 million for 2002. Management believes that comparison of its 2003 net loss to the 2002 net loss without the effect of the above-described items provides a useful measure for investors to compare the Company's period-to-period results of operations. The Company also announced that its auditor's report on the Company's 2003 financial statements does not contain a going concern modification. The Company's auditors had placed such a modification on their report regarding the Company's financial statements during the last four years. Roy T. Rimmer, Jr., the Company's Chairman and Chief Executive Officer, stated: "2003 was a year of tremendous progress for our Company. Our customer base has been substantially broadened during the year and our revenue from operations is finally returning to pre-September 11, 2001 levels. We have recently completed a refinancing of our senior credit facilities through the end of 2007, which provides us with increased working capital. We also recently sold our Miramar facility, resolving a significant legacy issue and allowing us to repay in full our tax retention operating lease financing. We believe that, with these changes, we are poised to benefit from the trend toward outsourced maintenance." Gil West, the Company's President and Chief Operating Officer, stated: "During 2003, we added an airframe heavy maintenance repair station and aircraft storage facility in Goodyear, Arizona; we significantly increased our engine maintenance capabilities; and we continued to build on the momentum with growth in our engineering services and new seat manufacturing businesses. Our ability to consistently provide our customers with a high-quality and low- cost outsourced maintenance solution continues to gain the attention of a growing customer base in the airline and air-cargo industries." C. Robert Campbell, the Company's Chief Financial Officer, stated: "We are very pleased to receive a clean opinion from our auditors. This is a major milestone in our turnaround process and acknowledges the financial and operational progress that our Company has made." TIMCO Aviation Services, Inc. is among the world's largest providers of fully integrated aviation maintenance, repair and overhaul (MR&O) services for major commercial airlines, regional air carriers, aircraft leasing companies, government and military units and air cargo carriers. The Company currently operates four MR&O businesses: TIMCO, which, with its four active locations (Greensboro, NC, Macon, GA, Lake City, FL and Goodyear, AZ), is one of the largest independent providers of heavy aircraft maintenance services in the world; Aircraft Interior Design and Brice Manufacturing, which specialize in the refurbishment of aircraft interior components and the manufacture and sale of aftermarket parts and new aircraft seats; TIMCO Engineered Systems, which provides engineering services both to our other MR&O operations and to our customers; and TIMCO Engine Center, which refurbishes JT8D engines and performs on-wing repairs for both JT8D and CFM-56 series engine. Visit TIMCO online at http://www.timco.aero/ . This press release contains certain forward-looking statements. Forward- looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. A number of factors, including those identified in the Company's Annual Report on Form 10-K for the year ended December 31, 2003 and those identified below, could adversely affect the Company's ability to obtain these results: the Company's ability to continue to generate sufficient working capital from operations to meet its operating requirements and service its indebtedness, the Company maintaining good working relationships with its vendors and customers, competitive pricing for the Company's products and services, the Company's ability to achieve gross margins at which it can be profitable, including margins on services the Company performs on a fixed price basis, competition in the aircraft maintenance, repair and overhaul market and the impact on that market and the Company of the terrorist attacks on September 11, 2001, the state of the domestic passenger airline industry and the financial condition of the Company's airline customers, the Company's ability to attract and retain qualified personnel in its business, utilization rates for its MR&O facilities, the Company's ability to integrate future acquisitions, the Company's ability to effectively manage its business, economic factors which affect the airline industry, generally including the amount of aircraft maintenance outsourced by various airlines, and changes in government regulations. Certain of these risks are described in the Company's filings with the Securities and Exchange Commission (SEC). Copies of the Company's SEC filings are available from the SEC or may be obtained upon request from the Company. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date. DATASOURCE: TIMCO Aviation Services, Inc. CONTACT: Roy T. Rimmer, Jr., Chairman & Chief Executive Officer, or C. Robert Campbell, Executive Vice President & Chief Financial Officer, of TIMCO Aviation Services, Inc., +1-336-668-4410 Web site: http://www.timco.aero/

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