TORONTO, April 17 – Toronto – Spar Aerospace Limited today
announced the award of a Department of National Defence contract to prototype
a CC-130 Hercules aircraft to incorporate improvements to the aircraft’s
structure and electrical system. This program is a continuation of several DND
initiatives intended to sustain Canada’s CC-130 fleet throughout its
operational life.

The prototype work will be done at Spar’s facility in Edmonton, Alberta,
a Lockheed Martin approved Hercules Service Centre. The program is expected to
be completed by June 2002. The CC-130 Hercules aircraft is the workhorse of
Canadian Forces’ strategic and tactical airlift operations and is also used in
the Search and Rescue role. The improvements to be made under this program
will enhance the reliability, maintainability and flight safety of the
aircraft throughout its life cycle.

“This is an important program”, said Major Kevin Lemke the DND Hercules
Aircraft Engineering Officer. “It will ensure that the CC-130 Hercules will
continue to be operationally available to meet various mission requirements
through to its identified life.”

“Spar has over 40 years of experience maintaining, modifying and
upgrading the C-130 Hercules aircraft,” said Mr. Harley Ranson, Vice President
Marketing Programs, Spar Aerospace Ltd. “Spar welcomes the opportunity to
continue to support DND’s initiatives to sustain the operational life of
Canada’s CC-130 fleet.”

With approximately 900 employees, Spar is a leading aviation services
company specializing in the maintenance, repair and overhaul, and upgrade of
military and civilian aircraft. Spar services customers from Canada, the
United States, Europe, South America, Asia, Africa, Australia and the Middle
East. Spar is listed on the Toronto Stock Exchange. Stock symbol: SPZ. Website


For further information: Elspeth Gaukrodger, (416) 682-7644,