USAF Decision Gives Pemco an Opportunity to Bid on New KC-135 Contract
June 28 2006 - 10:12AM
Business Wire
Pemco Aviation Group ("Pemco") (NASDAQ:PAGI) announced today that
it has received notice from the United States Air Force ("USAF")
that it will amend the Request for Proposal ("RFP") for the
performance of Programmed Depot Maintenance ("PDM") on KC-135
aircraft starting in FY08 (the "Program") to provide additional
time for current and new bidders to respond to the solicitation.
The solicitation, which opens on July 12, 2006, will provide a
period of 60 days to submit proposals on the Program. The change
will allow Pemco either to bid on the work as a prime contractor or
to partner with another firm. Pemco is currently teamed with Boeing
to provide KC-135 maintenance and modification work through FY07.
That contract remains in place and there are options for the USAF
to extend it into 2008. Ron Aramini, President and Chief Executive
Officer, stated, "Pemco is very pleased to have an opportunity to
bid on future KC-135 PDM work. We have provided the most dependable
quality and lowest cost, plus competitive turn-times for the KC-135
program, and we will continue to do so. We are very encouraged by
this opportunity and look forward to keeping this program at Pemco
where it has been the core of our 35-year successful history with
military aircraft." Michael Tennenbaum, Chairman of Pemco's Board
of Directors added, "The KC-135 work is crucial to the profitable
operation of Pemco's Birmingham, Alabama facility which employs,
directly and indirectly, about 1,000 people. The tanker is also a
vital part of our country's airpower capabilities which are a
centerpiece of current military operations. We strongly believe
that keeping an industrial capacity to maintain large numbers of
KC-135's is prudent national defense policy." 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, 2005. 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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