Alabama Aircraft Industries, Inc. (Pink Sheets: AAII) announced today that AAII and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), Local No. 1155 have agreed to extend, with no changes in pay or benefits, its current collective bargaining agreement for another three years through March 21, 2013. The extension will allow the Company to control expenses and actively compete for new business.

Ron Aramini, President and Chief Executive Officer, said, “We are very pleased that the UAW has agreed to partner with us in fighting for the future of our company and our 800 employees. They understand the competition we face and they are willing to stand with us to meet this challenge and move this Company forward in a steady and determined manner. Given the uncertainties surrounding the future of the KC-135 contract, we have been forced to take strong measures to meet our future and the UAW is going to be very instrumental in our ability to withstand the rigors of a tough economy and even tougher defense industry spending environment.”

Alabama Aircraft Industries, Inc., or AAII, with executive offices and facility in Birmingham, Alabama, performs maintenance and modification of aircraft for the U.S. Government and foreign and domestic customers. The Company also provides aircraft parts and support and engineering services.

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