AeroMechanical Services Ltd. (TSX VENTURE:AMA) ("AMA" or the "Company"),
announced today it has filed an application with the Court of Queen's Bench of
Alberta against Sierra Nevada Corporation ("SNC") seeking the appointment of an
arbitrator as a result of the absence of progress on discussions regarding
outstanding accounts payable. 


The two companies were working together on the development of the Automated
Flight Information Reporting System ("AFIRS(TM)") 228. Late in 2010, AMA's
management recognized the progress on the AFIRS 228 was not on track, delayed
and over budget and moved development in-house. Since then the Company has been
attempting to resolve the outstanding issues with SNC. To date, there has been
no satisfactory resolution found and in order to make progress AMA has
terminated the License and Manufacturing Agreement that was executed on December
29, 2008 for material breach and asked the courts to appoint an arbitrator to
resolve the outstanding issues.


AMA is claiming damages in the amount of $1,329,976 (US) and $2,650,000 (CDN)
for the breach of the agreement. 


About AeroMechanical Services

AeroMechanical Services Ltd., under the brand name FLYHT(TM), provides
proprietary technological products and services designed to reduce costs and
improve efficiencies in the airline industry. The company has patented and
commercialized three products and associated services currently marketed to
airlines, manufacturers and maintenance organizations around the world. Its
premier technology, AFIRS(TM) UpTime(TM), allows airlines to monitor and manage
aircraft operations anywhere, anytime, in real time. If an aircraft encounters
an emergency, AMA's triggered data streaming mode, FLYHTStream(TM),
automatically streams vital data, normally secured in the black box, to
designated sites on the ground in real time. The company has been publicly
traded on the TSX Venture Exchange since 2003 under the trading symbol AMA. 


AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of AeroMechanical
Services Ltd.


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