The official newscame just prior tous leaving for theNBAA Convention andTrade Show in Orlandothis past October, thatMC2 and KAAV had wona v e r y p r e s t i g i o u scontract from TransportC a n a d a . W e w e r ecompeting against thebiggest names in the North American avionics business. It was thrillingto learn that our team was selected to perform the avionics retrofitting toTransport Canada's entire fleet of Cessna Citation II aircraft.

This is without question one of the largest and most prestigious avionicsand flight system support revamps commissioned and undertaken notonly in Canada, but for the total Citation II fleet globally. Collins ProLine21 big-screen EFIS and Avionics Systems, Airborne CollisionAvoidance Systems and Terrain Awareness Warning Systems will beadded to the fleet. In addition, the cockpit of Transport Canada's CessnaCitation full flight simulator will be updated to the same configuration asthe retrofitted aircraft. The work will be completed

over a two-year period and involves Transport Canada's nineCessna Citation II aircraft and their simulator .

The fit and mix between client, service provider and equipmentsuppliers, had to be an exact match. We are very pleased to haveRockwell Collins, L3 Avionics, Universal and Honeywell joining us asthe primary OEM suppliers in this commitment to bring the TC fleet to anew standard in performance and service reliability and flightoperational enhancement.

We have dubbed thisproject “Polaris” -because as we allknow it is the brighteststar in the Northern skyand always indicatesdue no r th to anobserver anywhere onthe Earth. The namealso underscores theimportance of thissystem and upgrade toTransport Canada intheir travels.

at MC2’s YYZfacilities

The past year wasanother great one forboth KAAV and MC2!

As is always the case with suchthings, we need to start bythanking our clients for thissuccess. You are helping us tocontinue our leadership inCanadian avionics service, repair,sales and installation.

The past 12 months have seen us execute and enjoy some great projects.We have of course added a few more “firsts” to our list. Like our newintegrated EFIS/Autopilot cockpit for the Eurocopter EC 120, a mod thatis already getting attention from other possible clients. At MC2 ourElectronic Flight Bag (EFB) STCs for the Falcon Models 50 & 900(including 'EX' models), as well as many other popular airframes, areincreasingly gaining more industry notice. In the near future, we expectMC2 to complete their work on an EFB STC for the Bombardier 604. Thisnew STC will cover the 601 series as well.

Our growth in the avionics wire harness manufacturing arena at Kitchenerhas been stunning, with most of our manufactured products targeted tothe large airliners. And lastly, MC2 recently won the contract with theTransport Canada to upgrade avionics systems in their fleet of CessnaCitation aircraft. An industry insider recently referred to this project as“The Super Bowl” of avionics programs.

With this success has come more growth and expansion. The respectiveteams at KAAV and MC2 have added members to properly service andsupport this new business. We have welcomed 30 new staff at KAAValone, and several more at MC2. We have also added new technologyand the tools to make our business work better for you - most notablystate-of-the-art laser wire marking technology at both sites for increasedefficiency and quality in wire harness fabrication. And MC2 have addedadditional shop and office space to that which they only just moved into alittle over 12 months ago!

This development and sustainable growth is because of our clientsand the continued vote of confidence that we getfrom them through their continued trust andbusiness. We thank you all and offer our bestwishes to you and your families for a successfuland prosperous New Year.

Year EndWrap-UpAvionics TalkAvionics TalkFall 2006/Winter 2007

Waterloo Regional Airport, Hangar #9, Box 69, Breslau, Ontario N0B 1M0Tel. (519) 648-2921 or 1-800-928-4669 Web Site: www.kitcheneraero.com

&

Street Address: 6120 Midfield Road, Unit 11, Mississauga, Ontario L4W 2P7Mailing Address: PO Box 160, Toronto AMF, Mississauga, Ontario L5P 1B1

Tel. (905) 673-9918 Web Site: www.midcanadamod.com

With Thanks Again to ourCBAA 2006 OEM Participants

A Note From . . .

The 1st of 9 - just days after arriving and well underway.

Another Helicopter Firstfor KAAV!A major Canadian energy sectorcompany and long-time KAAVcustomer recently purchased anew Eurocopter EC 120B “Colibri”for use in the surveying, inspectingand management of its vastnetwork of service, supply anddelivery systems. F

hehelicopter was flown directly toKAAV for avionics completion andspecial missions modifications .

The EC 120B arrived with a verybasic avionics and instrumentsuite. KAAV's role was to design, install, and certify an extensiveAvionics and Special Missions package. The mod project began inJune and concluded in August - inclusive of flight tests, certification

and client acceptance.

Most visible among theupgrades is the big 2-screenSAGEM ICDS-8 EFIS FlightDisplay system, which is fullyintegrated with the SAGEMAP85 2-Ax is Au top i lo tSystem. Attitude and Headingreference for the EFIS andAutopilot Systems is suppliedby a LITEF LCR-92 AHRSSystem. Not nearly as visible,

but an important part of the special missions mods is a state-of-the-art fixed, downward facing camera system, images from which canbe displayed on the MFD Display.

The equipment incorporates: SAGEM AP85-120 2-Axis AutopilotSystem with optional Altitude and Airspeed Hold, SAGEM ICDS-82-Screen EFIS (PFD/MFD), LITEF LCR-92 AHRS System, NATAMS 44 Audio Panel, Garmin GNS 530 & GNS 430 Nav/Com/GPSSystems, Garmin GTX 327 Transponder, Garmin GDL 69 DataLinkXM Weather System, Avidyne TAS-620 Traffic Awareness System,Honeywell KRA-405B Radar Altimeter System, Technisonic TFM-403 UHF FM Comm System, Custom Digital Camera & VideoRecording System & SAGEM MFD (with optional Aux Video Cardfor real-time display of camera image).

This marks the 4th unique Special Missions rotorcraft mod projectto be completed and delivered by KAAV in the past 24 months.

ollowingdelivery from the manufacturer, t

The LaserAge Comes to KAAV and MC2!Both KAAV and MC2 haverecently added laser wire-marking technology to ourrespective facilities. These$100,000.00 units provide farsuperior and safer wire-marking, at much highervolumes than was previouslypossible.

Ultimately the investment inthese machines will save timeand customer cost through

increased efficiency ofproduction. For theKAAV team in particular,w h e r e h a r n e s smanu fac tu r ing hasbecome a very large andimportant part of ourbusiness. This new unitis allowing us to buildand deliver superiorproducts to our clients.

We are also told thatwhile this system is notunique, we are one ofthe first service providers in Canada to make the investment in theseunits - underscoring our unwavering commitment to absolute quality.

Avionics TalkAvionics Talk

Waterloo Regional Airport, Hangar #9, Box 69, Breslau, Ontario N0B 1M0Tel. (519) 648-2921 or 1-800-928-4669 Web Site: www.kitcheneraero.com

&

Street Address: 6120 Midfield Road, Unit 11, Mississauga, Ontario L4W 2P7Mailing Address: PO Box 160, Toronto AMF, Mississauga, Ontario L5P 1B1

Tel. (905) 673-9918 Web Site: www.midcanadamod.com

Page TwoPage Two

Year EndWrap-UpFall 2006/Winter 2007

New laser labeling units.New laser labeling units.

Harness manufacturing lines at KAAV.Harness manufacturing lines at KAAV.New EFIS on EC 120B

The EC 120B as delivered byKAAV at the end of August 2006.

The EC 120B as delivered byKAAV at the end of August 2006.

CBAA Presents Awards to both KAAV and MC2!During the CBAA convention in June 2006, both KAAV and MC2 werehonored to be two, among the very first three recipients of the association'sIndustry Support SafetyAwards. The awards read:

Barry Aylward accepted the awards from Nick Stoss of the TransportationSafety Board.

KitchenerAero and BarryAylward:

Mid-Canada Mod Center and BillArsenault:

In recognition of 25 years of support to general, business, and commercialaviation, and the safety enhancements achieved through the repair,installation, service and systems design, integration, and specialization inavionics.

In recognition of support to business and commercial aviation, and thesafety enhancements achieved through the upgrade, installation, serviceand systems design, integration, and specialization in avionics.