RMS.L Regulatory News (RMS)

Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

28 January 2016

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

Enters Rapidly Growing Chinese UAV Market

Strat Aero plc, the AIM quoted international aerospace company focused on the Unmanned Aerial Vehicle ('UAV') sector, is pleased to announce its entrance into the rapidly growing Chinese and Asian UAV markets through the signing of two agreements.

The Chinese UAV market has been identified by the Board as an area of strategic importance for the Company as one of the fastest growing in the world with highly attractive supply and demand dynamics. China's Civil Aviation Administration estimates that by 2018, there will be a demand for more than 30,000 civilian drone pilotsi rising from the approximately 700 licensed pilots at present.

I-Coach (Hong Kong)

· Master Franchise Agreement with Hong Kong based I-Coach, to roll-out Strat Aero's proprietary UAV Training Programme and capitalise on the rapidly growing base of UAV operators in Hong Kong, The People's Republic of China, the Taiwanese Republic of China and Macao

· Under the terms of the Agreement Strat Aero will receive a sign on fee, annual recurring fees based on student numbers and other standard franchise terms in return for granting I-Coach the exclusive rights to operate its training programme in the above named territories

· Target audiences to include commercial enterprises which want to add UAVs as a new tool to improve their business, private aircraft pilots and private UAV owners

AviationLearn (Singapore)

· Memorandum of Understanding with AviationLearn Pte Ltd ("AviationLearn") of Singapore, a leading technology based training provider in Asia, to offer training and professional advice to AviationLearn on the use of UAVs in Singapore ('MOU')

· MOU is in line with Strat Aero's objective to become a leading worldwide provider of UAV training and education solutions, covering all aspects of the value chain including software, hardware and services

Tony Dunleavy, CEO of Strat Aero, said: "Today's developments represent Strat Aero's initial thrust into the Asian market and I am confident that these agreements will position us at the heart of what is a rapidly expanding market. There is no doubt that our British and aviation heritage, combined with the credibility of our stock market listing and the quality of our proprietary training programme, offer us an exciting opportunity to carve out a significant position across Asia, in both training and other commercial markets. We expect to report further progress in this regard both shortly, as we look to build on the momentum behind the business and position Strat Aero at the forefront of the UAV revolution, which is transforming everyday business practices across commercial markets. We are also in the process of gaining a foothold into both training and other Asian sectors and opportunities in this regard will be an important focus for 2016."

Further Information on Master Franchise Agreement with I-Coach ('the Agreement')

I-Coach is a limited liability company based in Hong Kong and a new venture backed by the founders of Dacosmo Co. Ltd, an importer of UAV and related technology into Mainland China and an established provider of professional asset management solutions by using photogrammetric related equipment. I-Coach's target audience includes customers from mapping and surveying industries, similar to Strat Aero's Geocurve subsidiary. I-Coach is led by Mr. Chan Wei Wah who previously had a long and successful career with China Merchants Group, the US$56 billion conglomerate.

Under the terms of the Agreement, Strat Aero will provide its training programme, which has been developed to ensure UAVs are flown safely, legally and competently, for I-Coach students in Hong Kong, The People's Republic of China, the Taiwanese Republic of China and Macao ('the Territory'). The Agreement will see Strat receive a sign on fee, annual recurring fees based on student numbers and other standard franchise terms in return for granting I-Coach the exclusive rights to operate its Training Programme in the Territory.

The training courses will be aimed at:

o Survey and inspection companies who want to add UAVs as a new tool to improve their business;

o Asset Owners who want to buy and run their own UAV fleets to manage their industrial or public sector assets;

o Private Aircraft Pilots who want to add UAV pilot qualifications to their CVs;

o Private UAV owners who are keen to turn their hobby into a commercial business

Memorandum of Understanding with AviationLearn Pte Ltd ('the MOU')

Strat Aero has signed the MOU with AviationLearn Pte Ltd of Singapore to offer training and professional advice on the use of UAVs in Singapore, using Strat Aero's international expertise and training course materials. AviationLearn is a leading technology based training provider in Asia, with content domain expertise in the aerospace sector. Headquartered in Singapore, AviationLearn is a market leader in providing technical and professional training services, development and provision of Computer Based Training, Simulations and Virtual Reality training products for markets including Building & Construction, Aerospace, Energy, Medical and Education. The objective of the MOU with AviationLearn is to work together to develop and define solutions for a number of identified markets most notably in the defence and security sectors in Singapore.

- ENDS -

Enquiries:

Notes

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade. Commercial and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023.