ARX Aerobox

RNS Number:4823M
AeroBox plc
19 May 2005


19 May 2005

                                  AEROBOX PLC
                          ("AeroBox" or the "Company")

                         CHAIRMAN'S AGM TRADING UPDATE

Highlights

*    Flight results continue to be very impressive - with over 50,000 flights 
     completed and damages rates now less than 10% of industry standards.

*    Several sales proposals are being considered by leading global airlines

*    New developments proceeding well for both aviation and non-aviation markets

*    Cash balances at 30 April 2005 amounted to #2.5 million


Commenting on prospects, David Sebire, Chairman, said:

"Although the Board of AeroBox is disappointed with current order levels, there
are currently a number of sales proposals being considered by a number of global
airlines which may lead to further orders. Notwithstanding current order levels
the Board is still pleased with the significant progress made by the group. The
Aerobox is a proven product that meets the demanding operational requirements of
the airline industry. The opportunities for our technology and know how beyond
the initial aviation market are now being developed for both the automotive and
military markets."


Enquiries:

  David Sebire                  Chairman, AeroBox plc           +44 207 929 5599
  Richard Scott                 Finance Director, AeroBox plc   +44 207 929 5599

  David Bick/Trevor Phillips    Holborn                         +44 207 929 5599
  Jonathan Wright               Seymour Pierce                  +44 207 107 8000


Website:         www.aeroboxplc.com


Notes to Editors:


The Aerobox air cargo container is the result of a decade of research and
development into composite structure panels. The strength and thermal resistance
of the Aeroplaz(TM) thermoplastic composite panels enables Aerobox to develop
custom made solutions for a wide range of applications in the aviation,
automotive and other industries. The unique construction of Aeroplaz(TM) 
provides for improved strength and durability that can reduce costly repairs by 
over 90% as well as improving reliability, utilisation and safety. The Aerobox 
has now flown over 50,000 flights in commercial airlines around the globe.


                         CHAIRMAN'S AGM TRADING UPDATE

At the Annual General Meeting at 10am this morning, David Sebire will say:

Review of Operations

Aerobox air containers have now flown over 50,000 flights. Damage rates and
repair costs have decreased further and are now less than 10% of the industry
standard for aluminium containers. For most airlines, the payback period from
implementing an Aerobox solution is now under 12 months.

Several sales proposals are being considered by leading global airlines. Given
the impressive results from trials and widespread industry recognition, we
remain optimistic that significant orders will be received in 2005
notwithstanding the financial challenges facing the aviation industry.
Significant development and prototype work for specific new customers is also
being undertaken in 2005 that if concluded successfully should result in
substantial orders for delivery in 2006 and 2007.

With the well documented challenges facing airlines in America and Europe we
have extended our sales focus into the Middle and Far-East. We have conducted an
extensive evaluation of the Chinese market with our CEO and COO visiting
prospective customers, suppliers and government officials. I am pleased to
report that following the granting of an interim certification by the Chinese
authorities, trials are about to start with Chinese airlines. Full certification
will follow the establishment of a Chinese production facility. A possible joint
venture partner has been identified and will be pursued once demand is properly
established from Chinese and Far-Eastern airlines. Material and labour costs are
significantly lower in China and this will help us achieve our gross margin
objectives.

Development work continues on the Kelvin refrigerated container with
certification testing in process. ACS has also developed an insulated curtain
version of the Aerobox for the perishables market. Positive evaluations and
trial results have been very encouraging in the automotive and military markets.

Finance

The group had cash balances of #2.5 million as at 30 April 2005. Given global
commodity shortages, the group has built up significant inventory levels in key
materials to ensure that there will be no production delays when large orders
are received.

Management

A lot of the credit for the establishment of ACS as a commercial reality must go
to our CEO, Bob Bushman, who came out of a previous retirement in 2001 to get
the Aerobox certified. He has overseen both the Admittance to AIM and the
establishment of the first Aerobox production plant. Bob will be 70 next month
and a search has been started by an International Search firm to find a suitable
successor, both externally and internally.  Our thanks go to Bob for his key
contribution to the Aerobox.

Prospects

As I noted in my previous statement in March 2005, sales of the Aerobox have not
developed as fast as we hoped and this will delay ACS from achieving break even
before 2006.

Our current business plan sets out a significant growth strategy for the group
based upon complementary business areas where we can deploy our core expertise
in applying advanced composite technology. The Board and its advisers are also
reviewing potential acquisition targets in areas adjacent to the existing
business.

Although the Board of AeroBox is disappointed with current order levels, there
are currently a number of sales proposals being considered by a number of global
airlines which may lead to further orders. Notwithstanding current order levels
the Board is still pleased with the significant progress made by the group. The
Aerobox is a proven product that meets the demanding operational requirements of
the airline industry. The opportunities for our technology and know how beyond
the initial aviation market are now being developed for both the automotive and
military markets.


David Sebire
Chairman

Date    19 May 2005


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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