Extension of Top Aces Standing Offer

Yellowknife, NWT, Discovery Air Inc. announced today that the Interim Contracted Airborne Training Services (ICATS) contract has been extended by the Government of Canada for a one year period.

Top Aces, a wholly owned subsidiary of Discovery Air, is the prime supplier of Airborne Training services to the Canadian Army, Navy and Air Force.  On February 23rd, 2005, the Government of Canada awarded three national standing offers to Top Aces to provide “fast jet” (known as Type 1) airborne training services to the Canadian Forces. The standing offers were for a period of five years, and this extension will extend that service until 2011.  Top Aces is the only compliant bidder in any area of ICATS Type 1 services.

Top Aces is currently reviewing the Government of Canada’s procurement plan for continued airborne training services beyond 2011 under a proposed new twenty year long term contract (10 years with two 5 year government options.)

Top Aces provides the Army, Navy and Air Force with operational airborne training support.   The President of Top Aces, Didier Toussaint said “We are extremely pleased to able to offer the men and women of the Canadian Forces an extension to the service that we have been providing for the past five years. I am quite proud of our team and the excellent training value they have provided. Through the ICATS program, the Army Forward Air Controllers (FACS) are trained in Close Air Support operations, and the Air Force and Navy use our adversary support and live fire target practice.  In addition, this program provides DND with Electronic Warfare simulation using the support of Department of National Defence (DND) Electronic Warfare Officers (EWO’s).”

Top Aces is a wholly owned subsidiary of Discovery Air, a specialized aviation company that operates across Canada and around the world. With the second largest fleet in Canada, and over 500 employees Discovery Air offers fixed and rotary wings services as well as logistics and remote operations management.

Discovery Air’s Class A common shares trade on the Toronto Stock Exchange under the symbol DA.A.

Discovery Air’s Debentures trade on the Toronto Stock Exchange under the symbol DA.DB.

For further information, please contact:

Investorrelations@DiscoveryAir.com

Rolf S. Dawson
Vice President, Corporate Finance and Administration
Rolf.Dawson@discoveryair.com (867) 444 0060

Sheila Venman
Vice President, Administration, Top Aces Inc.
sheilavenman@topaces.ca (613) 227 5710