Avcorp completes rights offering

Common Stock Listed
Toronto
Trading Symbol: AVP

VANCOUVER, Oct. 8 /PRNewswire-FirstCall/ - Further to its press releases dated
July 14, 2009 and August 31, 2009, Avcorp Industries Inc. ("Avcorp" or the
"Company") (TSX: AVP) announced that its previously announced rights offering
(the "Offering") has been completed. Pursuant to the Offering, Avcorp will
issue in total 129,259,718 common shares ("Common Shares") at a subscription
price of $0.06 per Common Share (the "Subscription Price"), providing gross
proceeds of C$7,755,583. The Company will receive aggregate net proceeds of
C$4,385,934, after setoff against certain loan obligations owed to Panta
Holdings B.V. ("Panta") (as described below). The Company's total issued and
outstanding Common Shares will increase to 177,732,112.
As described in the prospectus for the Offering, Panta agreed to purchase from
the Company at the Subscription Price any Common Shares that were not
otherwise subscribed for under the Rights Offering (the "Standby Commitment").
In addition, in consideration for Panta agreeing to provide the Standby
Commitment, Avcorp granted to Panta the right to subscribe for up to 8,078,733
additional Common Shares at the Subscription Price (the "Standby Fee Option").
In connection with the Offering, Panta acquired 56,160,821 Common Shares on
the exercise of rights, the Standby Commitment and the exercise of the Standby
Fee Option. The aggregate Subscription Price for such Common Shares of
C$3,369,649 was set off against amounts owing to Panta under a C$4 million
bridge loan, and Avcorp will use a portion of the proceeds from the Offering
to pay off the balance of this loan. Panta will hold approximately 40.7% of
the issued and outstanding Common Shares.

About Avcorp

Avcorp designs and builds major airframe structures for some of the world's
leading aircraft companies, including Boeing, Bombardier, and Cessna. With
more than 50 years of experience, approximately 500 skilled employees and
354,000 square feet of facilities, Avcorp offers integrated composite and
metallic aircraft structures to aircraft manufacturers, a distinct advantage
in the pursuit of contracts for new aircraft designs, which require
lower-cost, light-weight, strong, reliable structures. Avcorp is a Canadian
public company traded on the Toronto Stock Exchange (TSX:AVP).

(signed)

MARK VAN ROOIJ
CHIEF EXECUTIVE OFFICER

Forward-Looking Statements

Certain statements in this release and other oral and written statements made
by the Company from time to time, including in this release, are
forward-looking statements, including those that discuss strategies, goals,
outlook or other non-historical matters; or projected revenues, income,
returns or other financial measures. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially from those contained in the statements, including the following:
(a) the extent to which the Company is able to achieve savings from its
restructuring plans; (b) uncertainty in estimating the amount and timing of
restructuring charges and related costs; (c) changes in worldwide economic and
political conditions that impact interest and foreign exchange rates; (d) the
occurrence of work stoppages and strikes at key facilities of the Company or
the Company's customers or suppliers; (e) government funding and program
approvals affecting products being developed or sold under government
programs; (f) cost and delivery performance under various program and
development contracts; (g) the adequacy of cost estimates for various customer
care programs including servicing warranties; (h) the ability to control costs
and successful implementation of various cost reduction programs; (i) the
timing of certifications of new aircraft products; (j) the occurrence of
further downturns in customer markets to which the Company products are sold
or supplied or where the Company offers financing; (k) changes in aircraft
delivery schedules or cancellation of orders; (l) the Company's ability to
offset, through cost reductions, raw material price increases and pricing
pressure brought by original equipment manufacturer customers; (m) the
availability and cost of insurance; (n) the Company's ability to maintain
portfolio credit quality; (o) the Company's access to debt financing at
competitive rates; and (p) uncertainty in estimating contingent liabilities
and establishing reserves tailored to address such contingencies.
The Company does not undertake any obligation to update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of this release or to reflect the occurrence of
unanticipated events, except as required by law. Other than as specifically
required by law, the Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which such statement is made, or to reflect the occurrence of unanticipated
events, whether as a result of new information, future events or results or
otherwise.

SOURCE Avcorp Industries Inc.

Sandi DiPrimo, Investor Relations Contact, (604) 587-4938