Message from Niall Olver, CEO Grob Aerospace

As we already announced, Grob Aerospace GmbH was forced to enter the preliminary insolvency process on August 18th 2008.

Since this time all of our efforts have been towards researching a new investor to allow continuing our business in the best possible way.

Despite a number of on-going promising negotiations with various parties, we have unfortunately not been able to secure a new investor within the timeframe allowed by German law.

To ensure the August to October salary payments for all employees in Mattsies, Grob Aerospace GmbH will now have to file for insolvency this week. From November 3rd, 2008, most employees will be released from work. A core team will remain in Mattsies to keep business activities running on a minimum scale. The remaining management team of Grob Aerospace GmbH together with the Grob Aerospace AG in Zurich are continuing the ongoing discussions with potential investors.

We hope that a new investor will get on board and that we will then be in a position to re-hire most of the employees.

We deeply regret this unavoidable step and thank everyone who has supported the company.

We will keep you informed about any further development.