Magellan Aerospace Announces Contract Award with Boeing

MISSISSAUGA, ON, May 11, 2012 /PRNewswire/ - Magellan Aerospace Corporation announced today that it has been awarded a contract with The Boeing Company for the continuation of the production of complex, hard metal structural assemblies for the Next-Generation 737, 747-8, 767, 777, and the production of such assemblies for the new 787 Dreamliner airplanes.  These integrated assemblies will be manufactured and delivered from Magellan's New York, NY and Kitchener, Ontario operating facilities beginning in 2013.

This long term contract will continue Magellan's revenues from work for Boeing Commercial beginning in 2013 and into the next decade and provides a fundamental pillar of support to Magellan's core commercial platform.  Direct Boeing Commercial sales in 2011 contributed in excess of $80 Million Cdn. in revenue to Magellan. Magellan's core aerostructures expertise is in the provision of complex, machined components for large commercial platforms.  Boeing and Magellan have an established relationship and have benefited from working together to develop improved efficiencies using Boeing lean and value engineering tools as well as the Magellan Operating System™ (MOS™).  "We continuously find ways to improve our processes to ensure our customer's needs are fully satisfied," stated James Butyniec, Magellan President and Chief Executive Officer.

The Boeing contract provides a solid base of work for Magellan over the contract term.  "We look forward to continuing our strong, long-term "partnership" with one of our most valued customers and are well prepared to support future program requirements as they develop," said Daniel Zanatta, Magellan Vice President, Business Development, Marketing and Contracts.

About Magellan

Magellan Aerospace Corporation is one of the world's most integrated and comprehensive aerospace industry suppliers. Magellan designs, engineers, and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets, and complementary specialty products. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout Canada, the United States, the United Kingdom and India.

Forward Looking Statements:

This press release contains information and statements of a forward-looking nature and is based on assumptions as to the ongoing requirements for this customer and uncertainties as well as on management's reasonable evaluation of future events.  These statements are not guarantees of future performance and involve risks and uncertainties relating to the general economic climate that are difficult to predict, and/or are beyond the Corporation's control.  The principal risks and uncertainties can be found in the Annual Information Form dated March 25, 2012, filed on SEDAR at www.sedar.com.  A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements.

SOURCE Magellan Aerospace Corporation