PAGI Pemco Aviation Grp. (MM)

Pemco Aviation Group, Inc. (NASDAQ: PAGI) announced today that it has finalized the credit agreement with its lenders, Wachovia Bank and Compass Bank. The new revolving credit facility will extend until August 31, 2007 and provides for increases if and when Pemco is awarded the new KC-135 PDM contract with the United States Air Force. The existing credit line expired on October 15 of this year. Randy Shealy, Senior Vice President and Chief Financial Officer of Pemco Aviation stated, �We believe the new credit line with Wachovia and Compass Banks provides Pemco with the flexibility needed to operate in a very challenging and competitive environment. We are pleased to have Wachovia and Compass�s continuing support as partners in the future of Pemco.� Pemco also announced that it has completed the sale of its California subsidiary, Pemco Engineers, Inc. to Global Aerospace Technology Corporation. Mr. Shealy said, �The sale of Pemco Engineers to Global Aerospace assures the continuing quality of support products for cargo conversions. We are confident they will remain on the cutting edge of new technology and provide our customers with unparalleled support going forward.� Pemco Aviation Group, 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 go to 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. Pemco Aviation Group, Inc. (NASDAQ: PAGI) announced today that it has finalized the credit agreement with its lenders, Wachovia Bank and Compass Bank. The new revolving credit facility will extend until August 31, 2007 and provides for increases if and when Pemco is awarded the new KC-135 PDM contract with the United States Air Force. The existing credit line expired on October 15 of this year. Randy Shealy, Senior Vice President and Chief Financial Officer of Pemco Aviation stated, "We believe the new credit line with Wachovia and Compass Banks provides Pemco with the flexibility needed to operate in a very challenging and competitive environment. We are pleased to have Wachovia and Compass's continuing support as partners in the future of Pemco." Pemco also announced that it has completed the sale of its California subsidiary, Pemco Engineers, Inc. to Global Aerospace Technology Corporation. Mr. Shealy said, "The sale of Pemco Engineers to Global Aerospace assures the continuing quality of support products for cargo conversions. We are confident they will remain on the cutting edge of new technology and provide our customers with unparalleled support going forward." Pemco Aviation Group, 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 go to 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.