AVTECH communicates an update on Aventus NowCast

AVTECH Sweden AB (“AVTECH” and/or the “Company”) today communicates an update on
the ongoing and planned activities within the Company’s Aventus NowCast Business
Unit.

Commercial update

As recently announced AVTECH has entered into a contract with easyJet Airline
Company Ltd (“easyJet”) on the Aventus NowCast Full Flight solution, following a
competitive Request for Proposal process. After closing of the contract the
contract now enters into the first phase of agreement where Aventus will run in
easyJet’s operations during a limited number of months, in which a thorough
analysis will be executed to form base for a subsequent expansion of the Aventus
Full Flight service into easyJet’s full network if certain performance
criteria’s on fuel savings are met. No additional contracting is needed.

“As previously stated by our Aventus NowCast Business Unit Director, Jonas
Saric, the importance for AVTECH of having easyJet, Europe’s second largest
short-haul operator, as an Aventus Full Flight customer cannot be
underestimated”, says Christer Staaf, the CEO of AVTECH. “The process of winning
the contract took about a year and a half and we won the contract after an
extensive process in fierce competition with, what we perceive, all the
competitors in our market segment”, continues Christer Staaf. “Receiving the
contract demonstrates not only our technical and commercial competitiveness, but
it is also a good example of success in relation to our strategy to focus our
efforts on key customers who operate large volumes. The easyJet process is also
an example of a strong general trend where airline customers procure wind
optimization services following competitive Request for Proposal (“RFP”)
processes due to internal policies on how valuable contracts are to be awarded;
basically to make sure that contracts are awarded to the suppliers that are able
to provide the best value for money, irrespective of any special relations or
interests that suppliers might have with the prospective customers. Even though
RFP processes involves competition, RFP’s have the advantage of being relatively
firm in the sense that the procuring airline has already aligned the relevant
internal stakeholders, who are often many, on a decision to actually go ahead in
procuring wind optimization services. RFP’s also provide the advantage in the
sense that the timeline for the procurement process is more or less defined, as
opposed to exclusive sales who often represent a long and winding road with an
extreme amount of uncertainty related to if and when an actual contract might be
achieved. The bulk of commercial work that we perform prior to RFP’s, i.e. what
we often refer to as pre-sales, is still important as it is aimed at getting the
customer interested in wind uplink solutions in general, and as it builds
knowledge and confidence in AVTECH’s solutions ahead of when the prospective
customer might issue an RFP”, continues Christer Staaf.

“Looking ahead on the upcoming year our main focus is to achieve profitability
through a combination of cost cuts related to personnel, overhead, and
meteorological data, and a continued drive to increase business volumes
obviously. After experiencing third-party delays related to the extraction of
FDR-data we are currently in the process of finalizing the analysis for our
previously announced contract with airberlin, and besides airberlin we see a
number of interesting near-term opportunities with several other airlines.
Though certainly challenging I do look forward to 2016 and to achieve the
primary objective that the company has set, i.e. profitability”, finishes
Christer Staaf.

Technical update

During late 2015 AVTECH implemented its expanded Aventus NowCast solution to
cover the entire flight envelope of flights, i.e. besides Descent also Climb and
En-route. In addition to a service that is more easily marketable due to several
reasons, not least because the potential customer value of a "full flight" is
far greater than a "descent", AVTECH’s new Full Flight Solution also contains a
number of technical innovations that were not present in the Descent solution.
One example is a dynamic auto-fill feature where wind information for nearby
favorable flight levels is relayed up to the aircraft in order to offer each
individual flight an optimized operation.

Another significant technical development is working with the Met Office in the
UK to retrieve precise and detailed weather information through an Application
Program Interface. AVTECH can send time and space queries for any position in
the world straight to the Met Office’s IT Infrastructure. Implementing the Met
Office Web Processing Solution will result in significant financial savings due
to the heavily reduced need for hardware and furthermore it means a
significantly improved quality/freshness of weather data available from the Met
office to AVTECH and airlines.

Jon Croome, Business Development Manager from the Met Office said “The
technology solution we have put in place for AVTECH is ground-breaking and
allows AVTECH to access NWP model data for 4D flight trajectory globally.”

Looking ahead AVTECH is just finalizing the technical work related to the new
Aventus NowCast Air solution, where wind information is sent to aircraft (ACARS)
printers, allowing aircraft who are currently not technically equipped to
utilize the automated Full Flight solution, to still be able to tap in to the
benefits that are provided by Aventus. Furthermore AVTECH is currently
finalizing a state of the art Aventus Management Dashboard which will allow
customers to receive valuable real-time metrics, reports and graphics on their
utilization and benefits from Aventus. Additionally AVTECH is working on a set
of mobile device applications that are directed primarily to airline pilots, to
allow them to receive strategical and tactical information on flights already
before they enter the cockpit.

For more information, please contact

Christer Staaf, Chief Executive Officer, +46 (0) 8 544 104 80

Jonas Saric, Business Unit Director Aventus NowCast, +46 (0) 8 544 104 80

About Aventus NowCast

The Aventus NowCast™ system is a unique and patented system that enables
accurate wind information and/or 4-Dimensional Trajectories for flights, making
use of the very best in atmospheric modeling combined with the weather
information that provides the highest value to customers in relation to
granularity and how current the weather is, to create high resolution wind
models and wind data packages for the different segments of a flight; a so
called NowCast. Data packages are uplinked to aircraft to enable the onboard
Flight Management Systems (FMS) to accurately calculate an optimized flight
profile and the actual time when each waypoint of a flight will be reached. The
immediate benefits of Aventus NowCast are airline fuel and CO2 savings, i.e. the
solution is highly environmentally friendly. Aventus is also imperative for
aviation wide Time-based operations, which is an area where the solution
provides even larger overall financial and environmental benefits through the
provision of increased efficiency and punctuality of individual flights and of
the air transport system as a whole.

About AVTECH Sweden AB (publ)

AVTECH develops products and services for digital Air Traffic Management (ATM).
Its customers include the global aviation industry; e.g. airlines, airports,
aviation authorities, technology companies and airline manufacturers. By using
AVTECH’s products and services, each individual flight as well as the entire
airline operation can be optimized in terms of cost, noise and emission,
efficiency, punctuality and safety. The head office is in Stockholm, Sweden with
subsidiaries in Toulouse, France and an associated company in Dubai, U.A.E.
AVTECH Sweden AB is listed on NASDAQ OMX First North and has appointed Redeye
AB, tel: +46 8 545 013 30, as Certified Adviser.