Alabama Aircraft Industries, Inc. Announces Bankruptcy Filing

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Contact:            Doris K. Sewell

 Sr. V. P. Legal &

 Support Services

 205-510-4935

ALABAMA AIRCRAFT INDUSTRIES, INC. ANNOUNCES BANKRUPTCY FILING

            BIRMINGHAM, AL (February 15, 2011) – Alabama Aircraft Industries, Inc.(“AAII”), a leading provider of aircraft maintenance and modification services for the U. S. Government, today announced that it and its subsidiaries filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in Wilmington, Delaware this afternoon.

            Ron Aramini, President and Chief Executive Officer, stated, “The primary goal of AAII is to address long-term indebtedness and, in particular, long-term pension obligations under the terms of its pension plan.  AAII expects to expeditiously move before the Bankruptcy Court to modify its collective bargaining agreement with the UAW to allow for termination of the pension plan as well as for certain other cost savings.  AAII expects to solicit and obtain additional liquidity through a debtor in possession financing facility as well as through exit financing, and intends upon moving the case forward as quickly as possible, with a view to exiting bankruptcy by the summer of 2011.”

About Alabama Aircraft Industries

            Alabama Aircraft Industries, Inc., with executive offices and facilities in Birmingham, Alabama, performs maintenance and modification of aircraft for the U.S. Government and military customers.  The Company also provides aircraft parts and support and engineering services.

            Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated.

            We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized.  It is to be expected that there may be differences between projected and actual results.  Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.