Avcorp Industries Inc. (Avcorp) announces today that, following discussions with the Cessna Aircraft Company (Cessna), Avcorp and Cessna will transition current production work back to Cessna. Avcorp will continue to fulfill orders until transition and the transition timeline is not yet defined. Avcorp and Cessna are entering into discussions with respect to the timing and associated expenses in connection with the transition.

A production transition plan, as well as a remuneration agreement is subject of discussion. The transition timeline is anticipated to be over an extended period of time and is contingent on factors which will be the subject matter of the ongoing discussions with Cessna.

Avcorp will provide an update when the details of the transition plan are determined.

We believe that our current work flow and other and new business opportunities will provide a sustainable business for Avcorp. In addition the capital restructuring and financing activities undertaken during 2009 and 2010 have provided a less expensive cost of capital and debt service requirements which will assist Avcorp through this period of transition.