Press Release

Issued by .

November 29, 2012

Hangar8, already one of the Europe's largest operators of privately owned aircraft, has announced that it has acquired established aircraft management company, International JetClub (IJC), in what is one of the most significant industry developments in years.

The company, which also announced its year end results yesterday showing a 32 per cent increase in gross profits to £4.9m, acquired Farnborough based IJC for a total consideration of £1.1 million in cash and the issue of 500,000 Ordinary Shares in Hangar8.

The acquisition takes the company's number of aircraft under management from 40 to 50 (four of which are helicopters), 44 per cent of which are heavy, long range jets. The acquisition will also see IJC's staff compliment, including experienced flight support teams, flight crews and technicians, incorporated into the Hangar8 team. This further strengthens Hangar8's position as one of the leading providers of private aviation services and the deal demonstrably puts the combined group on a truly world class footing with Bombardier, Gulfstream, Hawker, Boeing, Cessna and Embraer aircraft types in its fleet.

CEO of Hangar8, Dustin Dryden, said, "This development is hugely significant for our owners, passengers and shareholders as it further moves the company towards its goal of providing maximum global reach and scale, more long range, heavy aircraft and enhances the expertise and capabilities of our business.

"As our results have shown, Hangar8 has delivered consistently on its targets of increasing its global bases and destinations, bringing its engineering provision in-house and increasing the size of its fleet whilst delivering a healthy, profitable business. The acquisition of IJC will ensure that we continue to deliver this and more in the coming years".

Chairman, founder and owner of IJC, Murray Law, will become vice chairman of Hangar8 and will play an ongoing role in the business with specific responsibilities surrounding management development, systems and integration.

The two businesses will continue to operate, as they are both successfully doing, for a period of no less than six months during which period there will be an assessment of the two infrastructures to determine best practices for the combined company.

Commenting on the acquisition Murray Law said, "This development brings together two already successful and complementary businesses, each with their own skill sets, different fleet profiles and technical expertise grown over 14 years' experience in hands-on operations. IJC has been operating and managing long range aircraft worldwide for many loyal, long standing client owners. The bringing together of these two operations gives us a perfect opportunity and combined skilled resource to give both the benefit of leading edge practices in areas such as safety management systems and international network growth. We will be focussed on raising the bar in our industry – not about cutting costs and corners in a tough global economy. All our clients will benefit from the greater strength, scale and depth of the combined businesses".