News
AeroMechanical Services Ltd. Announces Response to Counterclaim

Nov. 7, 2007, Calgary, Alta.- AeroMechanical Services Ltd. announced today  that it  has filed a Statement of Defence against the Counterclaim brought against it by  Star Navigation, Viraf Kapadia and Peter Verbeek. We will be seeking security  for  costs from the Ontario Superior Court of Justice as we see the Counterclaim as being frivolous and vexatious.
       
AMS has counterclaimed against Star. We are claiming damages of
$15,000,000 for interference with legally binding contracts of AMS, disruption
of business, an attack on our reputation and costs on a substantial indemnity
scale. As an owner of the patent which is the center of the controversy and
probable benefactor of any outcome, we have also named Viraf Kapadia as a
defendant in our Counterclaim.
       
In the US infringement case, Star is alleging that AMS is infringing
Star's 852 patent. Although the case is in its early stages, AMS' position is
that the case is without basis and that there is no merit to the infringement
allegations. AMS will defend the litigation vigorously and is prepared to see
it to a conclusion. AMS is prepared to take any legal action against Star as
is necessary to defend itself and its products.

       
AMS is a technology leader in airliner performance monitoring systems,
and has been rewarded with patents to cover its technology. AMS takes
intellectual property matters very seriously and respects the intellectual
property of third parties. AMS is disappointed that Star has chosen to attempt
to compete with AMS via press release, baseless litigation, and U.S. Patent
Office procedure – rather than in the marketplace via better products and
services.

        About AeroMechanical Services Ltd.

        AeroMechanical Services Ltd. provides proprietary technologies and
services designed to reduce costs and improve efficiencies in the airline
industry. The Corporation has successfully commercialized three products and
associated services currently marketed to airlines, manufacturers and
maintenance organizations around the world. Its premier technology afirs(TM)
UpTime(TM) allows airlines to monitor and manage aircraft operations anywhere,
anytime, in real-time.