Re Contract

AVATION PLC
                                     ('AVATION' OR THE 'COMPANY')

                                     AGREES NEW LEASE OF AIRCRAFT

The  Board  of Avation, a commercial jet aircraft leasing group, is pleased to announce  that  it  has
agreed  the  lease of an additional Fokker 100 jet aircraft to Skywest Airlines Pty. Ltd. ("Skywest").
This aircraft (MSN 11373) was previously under lease to a European operator, and will be re-registered
in  Australia  as VH-FNU. The company understands that the Aircraft will be used mostly for  Skywest's
recently announced Rio Tinto Services Ltd. contract.

HIGHLIGHTS

    *       After satisfactory re-delivery from the previous lessee, the aircraft has now been formally
        delivered to Skywest in the Netherlands and is now under the control of Skywest Airlines Pty Ltd and
        is undergoing preparations to enter commercial service;

    *       The aircraft is leased by Skywest Airlines Pty Ltd. for a lease rate amounting to US$90,000
        per month plus maintenance reserves for a period of six years.

The Chairman, Jeff Chatfield said: "This is a useful new lease for this aircraft, in which Avation has
already  built  up  substantial equity during the prior lease period. I  am  confident  that  we  will
continue to deliver these kinds of lease arrangements for the benefit of our shareholders."

               The directors take responsibility for the contents of this announcement.

                                              ---ENDS---
Enquiries:

Avation PLC                                                                        07783 942 553
Jeff Chatfield, Chairman

Advisor                                                                            0207 628 1128
Frank Lucas, Loeb Aron & Company

Media                                                                              0207 562 3350
Maxine Barnes, Nick Farmer
Bishopsgate Communications

Website: www.avation.net

Avation plc