Profitable Year Reported by First Aviation

WESTPORT, CT -- (Marketwire) -- 03/09/12 -- First Aviation Services Inc. (PINKSHEETS: FAVS) today reported net income for the year ended December 31, 2011 of $791,000 or $.62 per share versus the prior year's loss of $1.2 million. Income from operations increased 55% over 2010. Gross margin improved to 21.6% from 19.5% in 2010 on lower sales volume.

The Company improved its balance sheet substantially with bank borrowings declining $5.9 million, payables declining $2.6 million and stockholders' equity increasing by $3.8 million. Book value per share as of December 31, 2011 was $20.85.

Aaron Hollander, Chairman and CEO, said, "We made significant progress during the year in focusing on higher margin business primarily in maintenance, repair and overhaul (MRO) and supply chain management. We are especially pleased with the progress our Aerospace Turbine Rotables, Inc. and Piedmont Propulsion Systems, LLC subsidiaries have made in growing their businesses and adding new product lines. Aerospace Products International, despite a challenging marketplace has continued to develop best in class technology in its third party logistics programs. We will continue to deploy our resources in segments that will provide superior long term returns."

First Aviation Services Inc., ("FAvS") located in Westport, Connecticut, through its principal operating subsidiaries Aerospace Products International, Inc., ("API") based in Memphis, TN, Aerospace Turbine Rotables, Inc. ("AeTR") in Wichita, KS, and Piedmont Propulsion Systems, LLC ("PPS") in Winston-Salem, NC is a leading provider of services to the aviation industry worldwide. With locations in the U.S., Canada, Asia Pacific and China plus partners throughout the world, FAvS is a leading provider of aviation products, supply chain management services, repair and overhaul and technology solutions to the industry.

More information about FAvS and its subsidiaries may be found on the company's website, www.firstaviation.com. Please see our forward looking statements at www.firstaviation.com/forward.

                        FIRST AVIATION SERVICES INC.
               Audited Consolidated Statements of Operations
             (In thousands, except share and per share amounts)


                                                    Year ended December 31,
                                                   ------------------------
                                                       2011         2010
                                                   -----------  -----------

Net Sales                                          $   113,056  $   128,463
Cost of Sales                                          (88,635)    (103,392)
                                                   -----------  -----------

  Gross Profit                                          24,421       25,071

Selling, general & administrative expenses              21,248       22,419
Corporate expenses                                       1,500        1,577
                                                   -----------  -----------
                                                        22,748       23,996

  Income from operations                                 1,673        1,075

Non-operating income (expense)
  Interest expense                                      (1,405)      (2,213)
  Other                                                    718          (37)
                                                   -----------  -----------

Income (loss) before income taxes                          986       (1,175)
Income tax provision                                      (195)         (16)
                                                   -----------  -----------

Net income (loss)                                          791       (1,191)

Dividends on preferred stock                              (251)        (219)
                                                   -----------  -----------

Net income available (loss attributable) to common
 stockholders                                      $       540  $    (1,410)
                                                   ===========  ===========

Basic net income (loss) per share, and net income
 (loss) per share - assuming dilution:

Basic net income (loss) per share attributable to
 common stockholders (1)                           $      0.62  $     (1.80)
                                                   -----------  -----------

Net income (loss) per share attributable to common
 stockholders - assuming dilution (1)              $      0.62  $     (1.80)
                                                   -----------  -----------

Weighted average shares outstanding - basic (1)        874,644      783,710
                                                   ===========  ===========

Weighted average shares outstanding - assuming
 dilution (1)                                          875,349      783,710
                                                   ===========  ===========


  (1) Earnings per share and weighted average shares outstanding reflect
   the impact of First Aviation's 1-for-20 reverse stock split, which was
   effective October 24, 2011

  Please see our forward looking statements at
   www.firstaviation.com/forward


                        FIRST AVIATION SERVICES INC.
                    Audited Consolidated Balance Sheets
                    (In thousands, except share amounts)

                                                         December 31,
                                                   ------------------------
                                                       2011         2010
                                                   -----------  -----------

Assets
Current assets:
  Cash                                             $     1,112  $     1,302
  Trade receivables, net                                17,679       20,051
  Inventories, net                                      31,411       34,778
  Prepaid expenses and other                             1,843        2,417
                                                   -----------  -----------
Total current assets                                    52,045       58,548

Plant and equipment, net                                 1,830        2,467
Deferred financing costs and other                         477          538
Goodwill                                                 7,773        7,773
                                                   -----------  -----------
Total Assets                                       $    62,125  $    69,326
                                                   ===========  ===========

Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                                 $    16,178  $    18,777
  Accrued compensation & related expenses                  424          555
  Other accrued liabilities                              1,276        3,387
  Revolving line of credit                              16,985       22,257
  Term loan payable                                      1,200        6,400
  Notes payable                                              9           28
                                                   -----------  -----------
Total current liabilities                               36,072       51,404

Long term liabilities:
  Other liabilities                                      1,431        1,717
  Term loan payable                                      4,600            -
                                                   -----------  -----------
Total Liabilities                                       42,103       53,121

Stockholders' Equity
Common Stock
  Class A Common Stock                                     125           91
  $0.20 par value, 1,000,000 shares authorized,
  671,994 and 566,031 shares issued,
  respectively, 610,343 and 497,843
  shares outstanding, respectively

  Class B Common Stock                                      58           58
  $0.20 par value, 300,000 shares authorized,
  288,333 and 288,333 shares issued
  and outstanding, respectively

  Preferred Stock                                        1,835        1,584
  $0.01 par value, $100 redemption value, 30,000
  shares authorized, 18,354 and 15,841
  shares issued and outstanding, respectively

Additional paid-in capital                              41,960       39,669
Deficit                                                (18,181)     (18,721)
Accumulated other comprehensive income                     433          500
                                                   -----------  -----------
                                                        26,230       23,181
Less: Treasury Stock, at cost, 61,651 and 68,188
 shares, respectively                                   (6,208)      (6,976)
                                                   -----------  -----------
Total Stockholders' Equity                              20,022       16,205
                                                   -----------  -----------

Total Liabilities & Stockholders' Equity           $    62,125  $    69,326
                                                   ===========  ===========

  Please see our forward looking statements at
   www.firstaviation.com/forward


                        FIRST AVIATION SERVICES INC.
               Audited Consolidated Statements of Cash Flows
                               (In thousands)

                                                    Year Ended December 31,
                                                   ------------------------
                                                       2011         2010
                                                   -----------  -----------

Cash flows from operating activities:
  Net income (loss)                                $       791  $    (1,191)

  Adjustments to reconcile net income (loss) to
   net cash provided by operating activities:
    Depreciation and amortization                        1,160        1,146
    Equity based compensation                               93          132
    Provision for bad debts                                338          328
    Provision for excess & obsolete inventory              236          270

  Change in working capital assets/liabilities:
    Trade receivables                                    2,012       (1,930)
    Inventories                                          3,109        2,109
    Prepaid expenses and other                             574           (7)
    Accounts payable                                    (2,621)       2,787
    Accrued compensation and related expenses, and
     other accrued liabilities                          (2,242)      (2,162)
                                                   -----------  -----------

  Net cash provided by operating activities              3,450        1,482

Cash flows from investing activities:
  Purchases of plant and equipment and other
   assets                                                 (345)        (791)
                                                   -----------  -----------

  Net cash used in investing activities                   (345)        (791)

Cash flows from financing activities:
  Net change in revolving line of credit                (5,272)         931
  Loan costs                                              (118)        (347)
  Repayments on term loan                                 (600)        (600)
  Repayments on notes payable and other
   liabilities                                            (305)        (397)
  Issuance of Class A common stock                       3,001            -
                                                   -----------  -----------

  Net cash used in financing activities                 (3,294)        (413)

Effect of exchange rate changes on cash                     (1)          (9)
                                                   -----------  -----------

Net change in cash                                        (190)         269

Cash at the beginning of the year                        1,302        1,033
                                                   -----------  -----------

Cash at the end of the year                        $     1,112  $     1,302
                                                   ===========  ===========


Supplemental Cash Flow Disclosures

Cash paid for interest                             $     1,126  $     1,828
                                                   ===========  ===========

Income taxes paid, net                             $        75           28
                                                   ===========  ===========

  Please see our forward looking statements at
   www.firstaviation.com/forward

Contact:
James G. Howell II
Chief Financial Officer
First Aviation Services Inc.
(901) 259-4502