Dear Friends and Customers,

Following up on Ed Dempsey’s letter of April 9, I want to give you a brief update on the status of Pacific Aerosystem, Inc. (PAI) and what we know about Iniziative Industriali Italiane (3I).

PAI is on schedule to close at the end of the month. This has been a very sad time for all of us at PAI. We will miss the good times we had working together, but most of all we will miss the friends and customers we have worked with for the past several years. Unfortunately, it is time for us to close the doors and move on with our lives.

We have had very limited communications with 3I during the past two months. We understand that they are reorganizing and that Mrs. Lauri has resigned from active participation in the company. At this time we are hopeful that the reorganization will proceed smoothly, and that they will be able to resume production and provide ongoing customer support. Contact information is contained on their web site: www.skyarrow.com.

In the United States, Hansen Air Group is waiting to hear from 3I regarding their plans. If all goes well, they will become the Sky Arrow distributor for North America as soon as 3I’s reorganization is complete and production resumes. Contact information for Hansen Air Group remains unchanged, and is contained on their web site: www.hansenairgroup.com.

Pacific Aerosystem, Inc. will be closing the office at 1870 Joe Crosson Drive on June 1.

Correspondence to PAI should continue to be sent to that address until we notify you otherwise. Mail sent to this address will be forwarded to the appropriate people so that we can wrap up any unfinished business. Chuck Anclien, our Tech Support A&P/IA has agreed to continue answering questions and providing parts as long as his supplies last. He can be reached on his cell phone at 619-459-7232. PAI cell phone 619-459-7234 will also remain active for a few weeks, and should be used if you need to contact me.

Sincerely,

Wayne Johnson

Pacific Aerosystem, Inc.