TRACE Engines LP Receives FAA Production Certificate

Midland-Odessa, Texas, October 14, 2009 – TRACE Engines, LP of Midland-Odessa, Texas, today received from Federal Aviation Administration (FAA) officials, its Production Certificate to manufacturer and support the FAA Certified TRACE 600-hp reciprocating aircraft engine for world-wide use in General Aviation.

“We are delighted to have received our Production Certification from the FAA in what amounts to a little over a year of all-out, concentrated effort,” said David Czarnecki, Chief Operating Officer of TRACE Engines. "TRACE passed our FAA Production Certification Board Audit with zero findings, which is remarkable." He added, “This represents not only an extraordinary achievement for our employees, it is an endorsement of our manufacturing capabilities and quality management procedures, plus it signals that our engine is indeed an airworthy product that is ready for the General Aviation marketplace.”

The TRACE engine is recognized as a powerful, liquid cooled, fuel-efficient, high-performance V-8 engine that is a cost effective alternative to turbine aircraft engines in defined utility applications. The TRACE design allows efficient engine operation from arctic cold to desert heat temperature extremes. The engine is the only viable reciprocating alternative in its horsepower class in the world and is fully certified by the FAA and Transport Canada.

“The future looks bright here at TRACE,” said Czarnecki. “We are currently working with two companies that are retrofitting TRACE engines into existing aircraft and one OEM that will be released publicly in the first quarter of 2010.” TRACE is continually looking for new airframe and Supplemental Type Certificate partners for existing aircraft. “With 600 horsepower, the TRACE engine offers aircraft manufacturers the ability to offer a powerful reciprocating engine at a fraction of turbine pricing, which allows for more affordable aircraft to be introduced in the market.” “Our benefits in performance, operating and initial cost are significant advantages for TRACE, especially given the current economic conditions.” TRACE is positioned for growth with new platform partners and a 750 horsepower variant of the engine is currently under development at TRACE. Czarnecki added, “Our second company, TRACE TowBots, is also seeing substantial demand of our remote control aircraft towing units since its acquisition in July.”

According to Czarnecki, “This is a proud day for TRACE Engines, our employees, our stakeholders and for the cities of Midland and Odessa, Texas.” Czarnecki further commented, “Midland-Odessa has both a proud aviation and high performance engine heritage. The Pliska Aeroplane, the first aircraft in Texas was built here. And of course, Franz Weiss’ reputation for high horsepower automobile racing engines in Chaparrals and INDY cars is well known.” Czarnecki further added, “We have been gratified by the worldwide interest in our TRACE and TowBot products. It is always a challenge to get a new program successfully launched into a pre-existing marketplace dominated by huge multinational corporations. We feel that this FAA Production Certificate, only the third they have granted in the past three years, will go a long way toward giving our program the worldwide credibility we need and will definitely help support the viability and acceptance of our product.” Mr. Czarnecki concluded, “We are grateful to our Texas Investment team for creating this opportunity for TRACE as well as for Midland and Odessa.”

“I feel the support we received from the FAA in audits leading up to the Production Certification is a model for industry and regulatory cooperation,” said Czarnecki. “The FAA Manufacturing Inspectors were critical in assisting TRACE in identifying areas for improvement and verification of production engine builds.” “Their feedback and TRACE’s strive for excellence lead directly to the result of zero findings during the Production Certification Board Audit completed in September.” Czarnecki added, “I would like to thank the San Antonio Manufacturing & Inspection District Office and Fort Worth Aircraft Certification Office for their support through our certification efforts.”

Design parameters for the TRACE Engine include a 600-hp rating, a preliminary TBO rating of 1,500 hours, the ability to out-climb, fly faster and use as much as 40% less fuel than its turbine-powered counterparts. For more Information on TRACE Engines, go to: www.traceengines.com or contact David Czarnecki at 432-230-9417.

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