Pemco Aviation Group Announces New Contract for Space Vector and New P

    Business Editors

    BIRMINGHAM, Ala.--(BUSINESS WIRE)--March 7, 2005--Pemco Aviation Group, Inc., announced the following news today:

    New Launch Vehicle Contract

    Space Vector Corporation, California subsidiary to Pemco Aviation Group (NASDAQ: PAGI), has received a contract to build a medium range target vehicle for national missile defense testing. The contract was received from Lockheed Martin in its capacity as the Targets & Countermeasures Prime Contractor for the Missile Defense Agency. Space Vector has, for thirty-five years, provided launch vehicles and related subsystems to government and commercial customers, including the U.S. Missile Defense Agency, the U.S. Air Force and NASA.
    Michael Tennenbaum, chairman of Pemco Aviation Group, stated, "This contract and other new business will permit Space Vector to triple its California based personnel this year. I am pleased that our California based funds helped Pemco keep Space Vector in business during its lean years."
    "We are excited that Space Vector will be supporting our nation's missile defense efforts, significantly growing the business and making a favorable financial contribution to Pemco during 2005," Tennenbaum said. "We value our relationship with Lockheed Martin very highly, both in the missile defense arena and in military aircraft maintenance programs where Pemco Aeroplex, one of our Alabama companies, has teamed with them on the C-130 UDLM program."
    "We are very pleased to once again work with Lockheed Martin on this important program. Space Vector has received several meaningful contracts in the last few months that have re-vitalized the company. Most notably, we are teamed with two companies which are building a responsive, low cost orbital vehicle which may well prove to be transformational for our business," stated Philip M. Panzera, president of Space Vector.

    New President Named for Pemco World Air Services

    Ron Aramini, president and chief executive officer of Pemco Aviation Group, Inc. announced today that Pemco has named a new President for Pemco World Air Services, its commercial aircraft maintenance facility in Dothan, Alabama following the retirement of former president Frank Tucci.
    Raymond Bennett, formerly General Manager for Aircraft Maintenance at Delta Airlines' Tampa facility, has accepted the position. Bennett, a seventeen-year veteran of Delta Airlines, is a top-performing manager who brings with him a strong understanding of customer requirements and modern MRO productivity and efficiency approaches, including Lean Maintenance and Total Quality Management. Mr. Bennett holds a Bachelor of Business Administration, Finance degree from Georgia State University.
    Mr. Aramini commented, "We are pleased to have Ray joining us at Pemco. His expertise in Lean and experience in meeting customer expectations and managing maintenance organizations to top levels is impressive. His assumption of leadership will take Pemco World Air Services to new levels in supporting our continued growth in the commercial aircraft maintenance and overhaul market."
    Certain statements in this release that are not historical fact may constitute forward-looking 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, 2003. 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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CONTACT: Pemco Aviation Group, Inc. Doris Sewell, 205-510-4935 or Space Vector Corporation Phil Panzera, 818-734-2600 (Ext.2800)

KEYWORD: CALIFORNIA ALABAMA INDUSTRY KEYWORD: GOVERNMENT AEROSPACE/DEFENSE MANAGEMENT CHANGES MARKETING AGREEMENTS SOURCE: Pemco Aviation Group, Inc.

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