ARX Aerobox

RNS Number:2510G
AeroBox plc
10 December 2004


10 December 2004

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

                RESULTS OF EXTRAORDINARY GENERAL MEETING ("EGM")
                          AND PRE CLOSE TRADING UPDATE


At the AeroBox plc EGM yesterday, all resolutions proposed were passed.


Highlights - current trading
     
*    Trial results remain very impressive with over 12,000 flights completed.
     
*    Third and final stage of new manufacturing plant is now in operation.
     
*    Production volumes increased fivefold.

*    500 container order received for Saudi Arabian Airlines.

*    Placing raises #4.8 million to exploit opportunities for technology.


Commenting on prospects, David Sebire, Chairman, said:

"The Board of AeroBox notes the significant progress made by the group over the
last year. The transformation from development to full scale production is
almost complete. Just over one year ago we were a promising company with a
development prototype but no customers or commercial production capacity. We now
have a strong management team, customers, production capacity, a proven product
and industry recognition. The opportunities for our technology and know how
beyond the initial aviation market are being evaluated. Following the recent
Placing, we now have the funds in place to exploit these exciting medium term
opportunities and enhance shareholder value."



Enquiries:

David Sebire             Chairman, AeroBox plc                   +44 1454 310066
Richard Scott            Finance Director, AeroBox plc           +44 7986 423891

David Bick               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 AeroplazTM thermoplastic composite panels enables AeroBox to develop
custom made solutions for a wide range of applications. The unique construction
of AeroplazTM provides for improved strength and durability that can reduce
costly repairs by over 75% as well as improving reliability, utilisation and
safety.




                         CHAIRMAN'S EGM TRADING UPDATE

At the EGM yesterday, David Sebire said:

Review of Operations

The transition from an early stage development company producing one container
per week to a volume manufacturer of air cargo containers is almost complete.
The third and final stage of the new plant at Albuquerque is now live with both
the panel laminating and core extrusion lines installed and commissioned. Weekly
production rates have increased from 10 to 50 containers per week. Key parts of
the new plant have already been operated at the full single shift target level
of 150 units per week. Shipment of the 85kg production version of the Aerobox ("
AKE2") has started. The roll out of 250 Aerobox containers at the London Gatwick
operations of Virgin Atlantic is expected to be completed by the middle of this
month. By the end of 2004 there will be over 400 Aerobox containers in use with
airlines.

Aerobox air containers have now flown over 12,000 flights. Damage rates and
repair costs are less than 25% of those of aluminium containers. For a typical
airline the net present value of these savings over a whole life cycle exceeds
the capital cost of an air cargo container. The payback period is short -
between 12 and 24 months. The original Aerobox AKE that entered trials in late
2003 was only available with a curtain door opening and a standard flat base.
The Aerobox AKE is now also available with a bifold solid door and a
fork-liftable base. All three variants are now in trial with airlines. Given the
impressive results from trials and widespread industry recognition, we remain
confident that, in addition to the recently announced order for 500 units for
Saudi Arabian Airlines, further large orders will be received in 2005.

As our manufacturing subsidiary Aerospace Composite Structures ("ACS") is
resident in the USA, it is subject to routine inspections by the Federal
Aviation Administration ("FAA") that cover systems, manuals, processes and
production facilities as well as products. There has been an almost continuous
dialogue with the FAA on commissioning the new factory and developing and
certifying new variants of the Aerobox AKE for airline operations. The FAA has
approved the new production facilities and the solid door variant of the Aerobox
AKE and certification testing is almost complete on the fork-liftable variant.
The UK Civil Aviation Authority has also approved the curtain sided AKE2.
Certification testing will commence in early 2005 on the actively refrigerated
container that is being jointly developed with Kelvin Technologies.

As well as producing air cargo containers, the plant will produce composite
panels and honeycomb core material for other markets such as automotive,
construction and the military. The first contract is in negotiation.

Finance

The support for the recent placing from existing and new shareholders was
excellent. #2.6 million has already been received with the remaining #2.2
million of funds now due following approval by the EGM.



Future Plans and Prospects

As noted earlier, we remain confident that 2005 will be the first full year of
significant production and sales volumes

During 2005 we plan to:
     
*    consolidate our position as a major supplier of air cargo containers to the 
     airline industry;

*    enter the market place for temperature sensitive products;
     
*    apply our advanced composite technology to other industries.

*    confirm the feasibility of a production joint venture in China

Our current business plan sets out a significant growth strategy for the group
based upon complementary business areas that all rely upon our core expertise in
applying advanced composite technology.

The Board of AeroBox notes the significant progress made by the group over the
last year. The transformation from development to full scale production is
almost complete. Just over one year ago we were a promising company with a
development prototype but no customers or commercial production capacity. We now
have a strong management team, customers, production capacity, a proven product
and industry recognition. The opportunities for our technology and know how
beyond the initial aviation market are being evaluated. Following the recent
Placing, we now have the funds in place to exploit these exciting medium term
opportunities and enhance shareholder value.


David Sebire
Chairman
9 December 2004




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

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