Hines Aircraft: News

Press Release: Keshan Global Ltd. Defaults on Joint Venture Agreement

2010-08-24T11:17:00.001-04:00

ADMINISTRATIVE OFFICE

120 Eglinton Avenue East, Suite 500 Tel: + 416-481-9333
Toronto, Ontario, Canada M4P 1E2 Fax: + 416-322-3129
Web Site: www.hinesaircraft.com

J. Paul Hines, President and Chief Executive Officer of Hines Aircraft, Ltd. today announced that Keshan Global, Ltd. of Bihar, India is in default of their Investment and Joint Venture Agreement.

The Agreement, dated June 22, 2010 and signed July 15, 2010 by Keshan Global CEO and Managing Director, Manoz Keshan, was the result of months of negotiations and called for an initial deposit of USD$3 million and a total equity investment in Hines Aircraft, Ltd of USD$165 million. As part of the Agreement, two separate Joint Venture entities also were to be established in India with a total additional equity investment by Keshan Global of USD$500 million. One Joint Venture was to manufacture commercial aircraft having more than 20 seats, and the other was to distribute Hines aircraft under 20 seats in Asia.

The Keshan Global Investment in Hines Aircraft was expected to fund the development and production of the revolutionary Hines propulsion system and related aircraft models, as well as establish FAA manufacturing and production operations.

Keshan Global did not make the initial deposit and second advance in accordance with the terms of the Agreement and has failed to provide definitive responses with regard to the fulfillment of the Agreement.

“We are clearly disappointed with the failure of Keshan Global to comply with the terms of the Agreement we negotiated over many months,” said Mr. Hines. “Thankfully, this will not result in a significant delay in the development of our propulsion system and aircraft, which are environmentally “green” and highly efficient. We will continue discussions with potential investors that have expressed interest, but it will take some time,” he said.

Hines Aircraft has retained outside counsel to consider options with respect to the default and payment of a required $3 million breakup fee by Keshan Global.

Press Release: Joint Venture of Hines Aircraft and Keshan Global

2010-05-11T09:00:00.009-04:00

ADMINISTRATIVE OFFICE

120 Eglinton Avenue East, Suite 500 Tel: + 416-481-9333
Toronto, Ontario, Canada M4P 1E2 Fax: + 416-322-3129
Web Site: www.hinesaircraft.com

Joint Declaration of:

Hines Aircraft Ltd. (Hines)
A British Virgin Islands Corporation (BVI)

And

Keshan Global, (Ltd) (Keshan)
of BIHAR, INDIA

After careful review and considerable discussion Hines Aircraft and Keshan Global have concluded they should enter into a joint venture arrangement. The purpose is to complete the design and development of the Hines Aircraft propulsion system that will be incorporated on several modes of aircraft.

The agreement will include the provision of capital and services by Keshan for the manufacture of the first model aircraft in North America. In addition Hines Aircraft will enter into a technology transfer agreement wherein Keshan will partner with Hines for the manufacture of commercial aircraft having between 20 and 50 seats in India for worldwide distribution.

The aircraft industry is truly global and Hines Aircraft is committed to the globalization of its design. Hines believes Keshan is an ideal partner. Keshan with their extensive business experience will be in a position to expedite development of commercial models. In addition Keshan will distribute all other models of aircraft in the region.

Hines Aircraft is looking forward to completion of the agreement and commencement of our forthcoming Partnership.

Jointly released...

J. Paul Hines
President & CEO
Hines Aircraft Ltd

Manoz Keshan
Managing Director
Keshan Global

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Legislators Push for Bradley Board Empowerment, Creation of Bradley Airport Business Development Zone

2009-05-21T16:21:00.001-04:00

Connecticut State Senator Gary LaBeau has introduced a bill that could substantially benefit Hines Aircraft.

"We believe that after our meeting in January, Sen LeBeau developed a better understanding of the additional possibilities a company like Hines Aircraft could present for the Bradley International Airport and the State of Connecticut,"

said J. Paul Hines, founder and President of Hines Aircraft.

You can read State Senator Gary LaBeau's press release here.

Hines Aircraft Team Meets State of Connecticut and Leading Aerospace Manufacturers

2009-05-11T12:31:00.006-04:00

The leadership team of Toronto-based Hines Aircraft, Ltd. recently completed an exploratory visit to the State of Connecticut at the invitation of State officials and representatives of the National Center for Aerospace Leadership and Connecticut Center for Aerospace Technology.

Pictured, left to right: Costa Lake, Andrea Scott, Christopher Bracey-Gibbon, Senator Gary D. Lebeau, Iain Burnett, J. Paul Hines.

Hines President and Founder J. Paul Hines was joined by Program Manager and COO-Designate Iain Burnett, Corporate Development Consultant John Shulansky, and Christopher Bracey-Gibbon, International Marketing Director and Investor Relations.

A welcome meeting was hosted at the Connecticut State Capitol by Senator Gary D. Lebeau, Chairman of the Senate Commerce Committee, and included Andrea Scott, Director of the Connecticut Development Authority. Paul Hines said:

"the meeting provided an excellent opportunity to review the revolutionary Hines propulsion system and our future business plans with senior state leaders. I was impressed to learn about the remarkable aerospace technology and economic resources in Connecticut."

The Hines team also met with representatives and toured a number of aerospace facilities, including Pratt & Whitney, Bradley International Airport, Kaman Aerospace, Birken Manufacturing, Aero-Gear, and Aero Composite.

According to Iain Burnett:

"the plant visits were especially helpful to understand the quality of aerospace manufacturing and research capabilities. There is no doubt that within a 20 minute drive Hines has access to all the necessary engineering and manufacturing talent we would need."

Follow up visits are planned in the near future.