Gama Aviation : Acquisition of Aviation Beauport Limited

0ca04253-5dba-42e4-a88e-90200d073148.pdf Gama Aviation Plc (AIM: GMAA) ("Gama", "Gama Aviation" or the "Company")

Conditional acquisition of Aviation Beauport Limited ("Beauport") and

£10,000,000 facility with the Royal Bank of Scotland ("RBS") Acquisition of Aviation Beauport Limited

Gama Aviation Plc, one of the world's largest business aviation service providers, is pleased to announce the conditional acquisition of Aviation Beauport Limited; a privately owned Jersey based business offering a range of business aviation services. The acquisition of Beauport is conditional upon approval from the Jersey Competition Authority which is expected to complete by the end of February 2016.

The acquisition comprises a consideration of £2,600,000 in cash and the issue of 1,000,000 ordinary shares, which based on Gama's closing share price on 7 January 2016, gives a total consideration of £5,325,000. On completion, the purchase of Beauport will include fixed assets comprising property with a book value of approximately £2,000,000 and a net current asset neutral position including cash of approximately £650,000. In the twelve months to 31 December 2015, Beauport is expected to achieve a turnover of approximately

£6,000,000 and generate an EBITDA not less than £725,000. The Board expects the acquisition to be earnings enhancing in the first year.

Beauport has been operating since 1969 and has established itself as the only premier aircraft service provider in the Channel Islands. It provides a suite of business aviation services including aircraft charter, FBO services (including handling, parking and hangarage services) as well as having four aircraft currently under management.

The Board sees a strong strategic rationale for the proposed acquisition:

• Jersey is an important market with strong growth potential within the mature European market;

• The newly established Jersey Aircraft Registry provides the opportunity to increase business aviation traffic to the island;

• Jersey not only complements Gama's existing geographical footprint but importantly provides significant access to the high net worth local residents and aircraft owning business domiciled in Jersey both in respect of aircraft management and charter activities;

• The acquisition provides an important extension of Gama's MRO capabilities and allows us to enhance the line maintenance service provision to the airport; and

• The acquisition provides Gama with unique FBO facilities for business aviation in Jersey, offering handling, parking and hangarage services.

"This earnings enhancing bolt on acquisition is an excellent strategic fit for the Group and allows us to extend our product offering in both our European Air and Ground operations. It will also provide unique access and opportunity to be of service to the large number of high net worth individuals who reside in Jersey thereby providing potential growth in customers."

Mike Bell, owner of Beauport commented:

"I am delighted to have Beauport become part of the Gama family of companies, the pre-eminent company in services to the general aviation community. The industry is becoming dominated by fewer but larger players, and Gama is at the forefront of that expansion, and it seemed logical to work with one of the most respected and progressive players in the industry".

£10,000,000 facility with the Royal Bank of Scotland

Gama Aviation is also pleased to announce that it has agreed a £10,000,000 credit line in the form of a revolving credit facility for £8,000,000 and an additional overdraft facility of £2,000,000 from its principal bankers, RBS. This facility will be used to fund the cash consideration of the acquisition of Beauport and will also provide further expansion capital.

Kevin Godley, CFO of Gama Aviation Plc commented:

"The £10,000,000 facility agreed after an extensive competitive process cements our long standing relationship with RBS and provides Gama Aviation with the ability to accelerate on the delivery of our strategy of organic growth and growth by acquisition".

Ends

Gama Aviation Plc

Marwan Khalek, Chief Executive [phone]

Citigate Dewe Rogerson [phone]

Chris Jarvis, Associate Director Phil Anderson, Executive Director

Cantor Fitzgerald Europe [phone]

(Nominated Adviser & Broker)

Marc Milmo / Catherine Leftley (Corporate Finance) David Banks (Corporate Broking)