ExelTech provides financing update

MONTREAL , Dec. 18 /CNW Telbec/ - ExelTech Aerospace Inc. ("ExelTech" or the "Company") (TSX-V: XLT), a leading aircraft maintenance, repair and overhaul provider with operations in Montreal and Quebec City, announced today that it has not reached an agreement with the Société générale de financement du Québec (SGF) with respect to the financing of its activities. As a result, the Company is embarking on a new refinancing and investment process.

RSM Richter Corporate Finance

ExelTech also announced that it hired RSM Richter Corporate Finance as its exclusive financial advisor to initiate and execute a formal process to seek new financing and investment.

Credit Facility

ExelTech also announced that on December 16, 2009 it has signed an amendment to its credit facility with a Canadian chartered bank upon which additional support will be provided until the refinancing or investment process is finalized. This amendment bears conditions which are in line with current market conditions.

About ExelTech Aerospace

The third-largest commercial airframe Maintenance, Repair, and Overhaul (MRO) vendor in Canada , ExelTech Aerospace is listed on the TSX Venture Exchange and trades under the symbol XLT. The Company holds Transport Canada , US Federal Aviation Administration (FAA), European Aviation Safety Agency (EASA) and Bermuda Department of Civil Aviation (BDCA) approvals to maintain a range of aircraft and associated structures, components and systems. Aircraft models serviced by ExelTech Aerospace include Embraer ERJ135/145 family, EJet 170/190 family, and Bombardier CRJ regional jets; ATR-42 and 72, Bombardier Dash-8 and Saab 340 regional turboprops; and Boeing 737 narrow bodies. ExelTech is also a member of the SuperJet International Sukhoi MRO Service Centers Network.

With 310,000 square feet of hangar, shop and office space in three facilities in Montreal and Quebec City, ExelTech Aerospace Inc. provides maintenance repair and overhaul services to airlines in Canada , the USA and 25 other countries around the world.

To learn more about ExelTech Aerospace Inc. (TSX-V: XLT), please visit our website at www.exeltech-aerospace.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy of this release.

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For further information: Sylvain Duval, President and Chief Executive Officer, [phone] ext. 3884, [email protected]