First Equity Development, Inc. to be Appointed Financial Advisor to Mooney Aircraft Corporation

Business Wire, Oct 3, 2001

Business Editors

KERRVILLE, Texas & WESTPORT, Conn.--(BUSINESS WIRE)--Oct. 3, 2001

First Equity Development, Inc., the aerospace industry's leading specialized investment bank, has been retained by Mooney Aircraft Corporation as financial advisor to assist the company in a sale or potential investment, contingent on final court approval. Mooney, headquartered in Kerrville, TX, filed for bankruptcy protection under Chapter 11 of the Federal Bankruptcy Code on July 27th, 2001. Congress Financial Corporation, the debtor, and the creditors committee have approved First Equity's retention, also contingent on court approval.

Mooney Aircraft Corporation has a long and rich history of producing the highest performance single engine aircraft available. The company has prospered for over 50 years by providing aircraft with a superior performance/value equation. Mooney's unmistakable brand, the forward swept tail, is instantly recognizable at airports all over the world and helps to create its performance advantage. The company has produced over 10,500 aircraft and continues to sell high-margin service parts to support the 7,500 Mooney aircraft that remain in operation worldwide.

The current Mooney product line succeeds as the fastest, most efficient, and most capable aircraft on the market. Over forty years of engineering and improvements have resulted in an extremely proven airframe that is a study in aerodynamics, safety and stability. While Mooneys are known to have impeccable safety records, it is their outstanding capabilities as a serious cross-country aircraft that have generated a cult-like following of Mooney pilots. In addition to their superior speed and operating economy, Mooneys offer redundant electrical and vacuum systems, the latest in avionics and engine / fuel management systems, and advanced systems such as TKS anti-ice technology, PreciseFlight speed brakes, and Goodrich Skywatch traffic avoidance systems.

First Equity feels that there are multiple strong business cases for Mooney going forward. According to Dan Boland, Manager of Investment Banking at First Equity, "Mooney serves a unique niche among single-engine aircraft. Despite current concerns of the General Aviation market, the Mooney product line will continue to serve an important role in the industry going forward." It is widely believed that an acquisition of Mooney Aircraft Corporation will provide the right investor with ample opportunity for significant returns.