Columbia Executes Asset Purchase Agreement with Cessna

October 23, 2007 – (Bend, OR) – Today Columbia Aircraft Manufacturing Corporation officials revealed that shareholders have entered into an Asset Purchase Agreement with Cessna Aircraft Company of Wichita, Kansas. The terms of the Agreement are consistent with the September 21, 2007 Letter of Intent between the parties. The combination of the signed Asset Purchase Agreement and requisite deposit solidifies Cessna's position as the "Stalking Horse" in Columbia’s chapter 11 bankruptcy proceeding.

Additionally, Columbia officials reported that revised bidding procedures have been approved by the court and the auction date has been confirmed for November 27, 2007. The ability to close a sale by the end of November keeps the process moving forward according to plan.

Signing the Asset Purchase Agreement was good news for Columbia, who reported last week that year to date deliveries through the third quarter of 2007 were slightly ahead of the 2006 record-setting pace.

Columbia Aircraft Manufacturing Corporation manufactures a variety of all-composite aircraft including the Columbia 400 – the world’s fastest technologically advanced piston-single. The Columbia 350, 350i, 350SL and 350SLX are normally aspirated, four-place aircraft with a cruise speed of 191 knots. The Columbia 400, 400i, 400SL and 400SLX are intercooled, twin-turbocharged, four-place aircraft certified to FL250 with a cruise speed of 235 knots. In addition to providing legendary performance, both models are renowned for their high level of standard equipment, quality and safety features, including dual electrical systems, dual wing spars and Utility Category certification.