Vector Aerospace Announces First Quarter 2011 Results

TORONTO, ONTARIO—(Marketwire – June 10, 2011) – Vector Aerospace Corporation (Vector) (TSX:RNO) today announces its results for the three months ended March 31, 2011.

The interim consolidated financial statements and MD&A for the three months ended March 31, 2011 and the annual financial statements and MD&A for the year ended December 31, 2010 are available on the Company’s website, www.vectoraerospace.com and on SEDAR, www.sedar.com. The Company will provide copies of the interim consolidated financial statements and MD&A for the three months ended March 31, 2011 and the annual financial statements and MD&A for the year ended December 31, 2010 to each security holder who requests them. Requests for such financial statements and MD&A can be sent to info@vectoraerospace.com.

The Company generated consolidated revenue from operations of $127.3 million for the first quarter of 2011, consistent with the same period last year. Earnings from operations before restructuring costs were $8.2 million for the first quarter of 2011, $5.3 million below the same period last year. First quarter revenue and earnings were negatively impacted by declining activity on Lynx airframes in the UK, $2.5 million of costs associated with the sale process, and the impacts of changes in foreign exchange rates. Net earnings for the first quarter of 2011 were $6.1 million ($0.13 per share) compared to $9.9 million ($0.22 per share) for the same period last year.

In commenting on the quarter’s results, President and CEO Declan O’Shea stated: “Although our first quarter results were disappointing, we expect improvements as the year progresses. Our results for the first quarter of 2011 were impacted by lower activity levels in the UK as compared to 2010. We expect UK activity levels to improve later in the year and also anticipate continued improvements on activity levels from our North American operations as a result of general economic conditions.”