U.S. Aerospace receives notice from GAO

U.S. Aerospace, Inc. (OTCBB:USAE), a U.S. aerospace and defense contractor, today reported the Government Accountability Office (GAO) has denied Company's bid protest in connection with the KC-X Tanker Modernization Project.

"We would like to thank the U.S. Air Force for providing us with the opportunity to bid, and the GAO for its review of the materials and circumstances which led to its decision," said Director Michael Goldberg. "While we are disappointed with the outcome, we are pleased that the GAO determined that there is no evidence of any bias against working with international partners in bidding for U.S. military projects."

U.S. Aerospace, Inc. filed the protest based on claims that its joint bid with Antonov Company of Ukraine was timely submitted and within the Air Force's control before the deadline, and that their aircraft was the only one that meets all of the requirements of the request for proposal. The Company continues to believe that the AN-122KC offered the most capable aircraft at the most competitive price, thus benefiting both the American taxpayer and the American warfighter.

"This bid was only the first step in effectuating our ongoing long-term business strategy," continued Goldberg. "Merely submitting our joint bid and participating in the process has created a sea change in how the global aerospace industry views globalization and working together with leading aircraft manufacturers around the world. We look forward to continuing to bid on major U.S. military projects, and to supplying cost effective, high quality aircraft alternatives for commercial airlines and freight companies seeking to purchase, replace or upgrade their fleets."