PAGI Pemco Aviation Grp. (MM)

Pemco Aviation Group, Inc. (NASDAQ:PAGI) announced today that the International Association of Machinists and Aerospace Workers, AFL-CIO Local Lodge No. 1632 (IAM), has ratified its agreement with Pemco World Air Services, Inc. (PWAS), its Dothan, Alabama facility. The three-year agreement will allow Pemco to move forward with its strategic initiatives for maintenance and conversion services in a more competitive manner. Michael Tennenbaum, Chairman of the Board of Pemco Aviation Group stated, "The ratification of this Agreement was a signal to our competitors that Pemco and its employees stand together in their desire to provide the highest quality, most cost efficient products, services and turn times in the MRO industry. The terms agreed upon permit increased productivity and better utilization of the workforce. Our stakeholders and investors have been served well by the employees and the company in their negotiation of this agreement because it creates improved job security and reasonable potential profits." Ronald Aramini, President of Pemco Aviation Group, Inc. commends the agreement for the added value being provided to customers. "Not only is this a pivotal moment for our employees and Pemco, but the customer wins here as well. With the ratification of this agreement, we have the resources, infrastructure and talent to grow further our business. Our customers and potential customers are very pleased that we are moving forward in this manner and we now expect to develop significant new business." Pemco Aviation Group, Inc., with executive offices in Birmingham, Alabama, and facilities in Alabama and California, performs maintenance and modification of aircraft for the U.S. Government and for foreign and domestic commercial customers. The Company also provides aircraft parts and support and engineering services, in addition to developing and manufacturing aircraft cargo systems, rocket vehicles and control systems, and precision components. For more information: www.pemcoaviationgroup.com. 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, results of operations or liquidity. Factors that could affect the Company's forward-looking statements include, among other things: 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; material weaknesses in the Company's internal control over financial reporting; regulatory changes that adversely affect the Company's business; loss of key personnel; and other risks detailed from time to time in the Company's SEC reports, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2004. 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.