Pemco Aviation Group Signs C-130 Logistics Support Agreement
with Kellstrom Defense Aerospace
Singapore – (February 25, 2004) – Pemco Aviation Group, Inc. announced today
a Logistics Support Services Agreement entered into with Kellstrom Defense Aerospace,
a division of Kellstrom Industries. The agreement covers the provisioning, sourcing and
supply of parts and services for the C-130 Hercules Aircraft and was announced jointly
this morning at the 2004 Asian Aerospace Air Show by Hal Chrisman, Senior Vice
President of Corporate Development for Pemco Aviation Group and Ahmed Metwalli,
Vice President of Kellstrom Defense Aerospace.
The agreement, which was made through the Pemco Aeroplex business unit,
reflects Pemco’s continued commitment to support its C-130 customers with their
logistics requirements, to ensure that these customers receive the best service and quality
parts in a timely manner, and to support schedule requirements at competitive prices.
Late in 2003, Pemco was awarded the PSIB (Progressive Structural Inspection
Baseline) contract for the U.S. Coast Guard fleet of C-130s. Additionally, Pemco is
providing C-130 maintenance, modification and upgrades (MMU) for other domestic and
international customers, such as the U.S. Air Force and U.S. Navy, at its facility in
Birmingham, Alabama. Pemco expects its C-130 business to grow significantly.
Kellstrom Defense Aerospace is recognized worldwide as a leader in the supply
chain management of products and services in support of Lockheed Martin C-130/L-100
Hercules aircraft, the P-3 Orion, F-16 Falcon and other platforms. Kellstrom leads the
industry in the stocking, distribution and sale of aircraft and engine spare parts as well as
rotable exchange and repair services. The agreement capitalizes on the strengths of both
companies, allowing Pemco to take advantage of Kellstrom’s spare parts expertise to
provide improved maintenance services to its C-130 customers.
According to John Lee, Senior Vice President and Chief Financial Officer of
Pemco Aviation Group, “This agreement will offer our C-130 customers the best value in
Pemco/Kellstrom
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the form of competitive prices and faster delivery. Kellstrom will provide Pemco with
“just-in-time” inventory which will enable us to meet or exceed our C-130 delivery
schedules. Pemco has performed maintenance and modification on the C-130 for many
years and we are pleased to be able to partner with a company like Kellstrom.”
Lance Berberian, General Manager and Ahmed Metwalli, Vice President of
Kellstrom Defense Aerospace, explain, “This agreement is a win-win for both
organizations in that it lets each of us do what we do best. In Kellstrom, Pemco has a
strong logistics partner for one of its most important military aircraft programs. For
Kellstrom, the agreement gives us the brand recognition that comes from strategic
alliance with this aviation industry leader.”
Pemco Aviation Group, Inc., with executive offices in Birmingham, Alabama,
and facilities in Alabama, Florida, and California, performs maintenance and
modification of aircraft for the U.S. Government and foreign and domestic commercial
customers. The company also provides aircraft parts and support and engineering
services and full service overhaul and repair for a wide range of aircraft. Pemco Aviation
Group also develops and manufactures aircraft cargo systems, rocket vehicles and control
systems, and precision components for the aviation industry.
Headquartered in Miramar, Florida, Kellstrom is a world leader in supply chain
management focusing on military aircraft parts and repair and overhaul services to
customers around the globe. Through partnerships with premier original equipment
manufacturers, operators, end-users and service centers, Kellstrom maintains one of the
largest and most diversified military aircraft spares inventories in the world.
Certain statements in this release that are not historical fact may constitute forwardlooking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause actual results to differ materially from historical
results or from any results expressed or implied by such forward-looking statements,
including but not limited to: changes in economic conditions, Pemco's ability to obtain
additional contracts and perform under existing contracts, the outcome of pending and
future litigation, potential environmental and other liabilities, and other risks detailed
from time to time in Pemco's SEC reports, including its Annual Report on Form 10-K/A
filed with the Securities and Exchange Commission for the fiscal year ended December
31, 2002. Pemco cautions readers not to place undue reliance on any forward-looking
statements, which speak only as of the date on which they are made. Pemco 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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For additional information, please contact:
Doris Sewell or Hal Chrisman
Pemco Aviation Group, Inc.
205.510.4935