Aviall Services, Inc. Announces New $2 Billion Worldwide Ten-Year Distribution Agreement With Smiths Aerospace

DALLAS, Jan. 31 /PRNewswire-FirstCall/ -- Aviall Services, a business unitof Aviall, Inc., (NYSE: AVL), today announced that it has received from Smiths Aerospace LLC the worldwide aftermarket distribution rights for their civil aerospace line of products for a ten-year period. Aviall will assume its service provider responsibilities for the aftermarket after a transition period of several months.

The total program revenue is estimated to be approximately $2 billion. For 2006, similar to other recent contracts, Aviall will receive a commission for civil product aftermarket sales during the transition period and will begin to report full revenues when Aviall takes over full operational responsibility. On an annualized basis, first year equivalent revenues are expected to be in the range of $130 to $140 million.

As Smiths' civil aftermarket full-service provider, Aviall will utilize its critical core competencies of inventory forecasting and management, field sales and marketing, product fulfillment, quality management and technology-backed tools to ensure Smiths Aerospace's aftermarket customers have the product availability and support necessary to meet their needs.

Smiths Aerospace products covered by the agreement involve mechanical and electronic systems. Mechanical systems products include actuators, holdback devices, propeller systems, flight control systems, landing gear systems, and thrust reverser control systems. Electronic systems offerings include flight management systems, power systems, modules, navigation equipment and supplemental power systems.

Smiths Aerospace has held key positions in the supply chains from the early days of aviation up to and including the Boeing 787 and Airbus A380.

Paul Fulchino, Chairman, President, and CEO of Aviall, Inc. stated, "We are extremely pleased by the confidence Smiths Aerospace has demonstrated in joining with us to offer the highest customer service and supplier standards within the industry. We are confident Aviall's experienced sales team, extensive network of stocking locations, Internet-based parts quoting and order-entry system, and computerized inventory control systems will continue to exceed our customers' and suppliers' expectations."

Fulchino went on to say, "It is particularly gratifying to note Smiths' choice of Aviall for distribution of its entire civil aftermarket product line, covering all legacy, current production and future aircraft entering service during the term of the agreement. The choice underscores the value Aviall brings to the market throughout the product life cycle."

"The combination of Smiths' and Aviall expertise in the aftermarket will create all round value through faster product deliveries and enhanced customer satisfaction," commented John Ferrie, President, Smiths Aerospace. "This relationship will broaden our market reach and allow Smiths to increase growth in its core aftermarket."

Aviall, Inc. is a leading provider of aftermarket supply-chain management services for the aviation and defense industries. Aviall is comprised of two operating units: Aviall Services, Inc. and Inventory Locator Service (ILS). As the world's largest independent provider of new aviation parts and related aftermarket operations, the Aviall Services business unit markets and distributes products for more than 220 manufacturers and offers approximately 650,000 catalog items from 37 customer service centers located in North America, Europe, and Asia-Pacific. Aviall Services provides maintenance for aviation batteries, wheels and brakes as well as hose assembly, kitting and paint-mixing. The company also offers a complete set of supply chain andl ogistics services, including order processing, stocking and fulfillment, automated inventory management and reverse logistics to OEMs and customers. The Inventory Locator Service (ILS) business unit, headquartered in Memphis, Tennessee, provides information and facilitates global eCommerce via its electronic marketplace that enables subscribers to buy and sell commercial parts, equipment and services, as well as provides eBusiness Services to the aviation, marine and defense industries. Additional information on Aviall is available via the Internet at http://www.aviall.com .

Smiths Aerospace, a part of Smiths Group, is a leading transatlantic aerospace systems and equipment company, with more than 10,000 employees and$2 billion revenues globally. The company holds key positions in the supply chains of all major military and civil aircraft and engine manufacturers and is a world-leader in electrical power, digital and mechanical systems, engine components and customer services. http://www.smiths-aerospace.com .

SOURCE Aviall Services, Inc.

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