Letter of Intent Signed

7 Jan 2010

                                            AVATION PLC
                                   ("AVATION" or "THE COMPANY")

                       CONDITIONAL $7.8M FINANCE AND ACQUISTION OF AIRCRAFT

The  Company  is pleased to announce that it has entered into a conditional letter  of  intent  to
purchase  one Airbus A320-200 aircraft. The aircraft is currently in service in the UK and  is  at
this time is owned by a reputable international aircraft leasing company.

The  Company  has paid an initial deposit for the aircraft of US$150,000. The total cost  for  the
aircraft  to enter service is approximately US$11,000,000 with a base purchase price consideration
of  US$8,600,000.  The  Company will pay for the aircraft from its own group  cash  flows  and  in
principle  has secured interest free vendor finance in respect of US$7,800,000 over  a  period  of
three years.

The Directors are pleased with the offer of finance from the vendor.

The  aircraft  is  being  acquired for leasing to Skywest Airlines Limited  ("Skywest")  who  have
commenced  technical and commercial due diligence on the aircraft. Upon commencement  of  a  lease
with Skywest a further formal announcement on any operating lease terms and duration will be made.
Notwithstanding  the above the Company considers that the aircraft could be readily  leased  to  a
wider range of airlines.

Chairman  Jeff Chatfield said "We are pleased to have the opportunity to acquire this aircraft  on
very  attractive terms to us in strengthening the Company's balance sheet further  and  broadening
our fleet"

The Directors take responsibility for the contents of this announcement.

                                            ---ENDS---

ENQUIRES:

AVATION PLC                                                         07783 942 553
Jeff Chatfield, Chairman

ADVISOR                                                             020 7628 1128
Dr Frank Lucas, Loeb Aron & Company

MEDIA                                                               020 7562 3350
Nick Rome, Will Tindall
Bishopsgate Communications

Avation plc