Magellan Announces Extension of Credit Facility

May 23, 2008

Toronto, Ontario – May 23, 2008 – Magellan Aerospace Corporation (“Magellan” or the “Company”) announces that it has obtained a 30-day extension to the current term of its Credit Agreement to June 24, 2008.
As part of the extension, the Corporation is in negotiations with the bank to increase the Credit Facility limit by $20,000,000 and to extend the agreement term to May 23, 2009. To date the negotiations have been positive with respect to proposed amendments to the Credit Facility. The Corporation is also in discussions with the Chairman of the Board of the Corporation to extend his guarantee for the additional term and to cover the additional amount of Credit Facility. Magellan expects to use a portion of the additional credit facility capacity to retire the Bridge Loan for $15,000,000, due July 31, 2008, which it borrowed in January 2008 to partially fund the repayment of the 8.5% convertible unsecured subordinated debentures on January 31, 2008.
Magellan Aerospace Corporation is one of the world’s most integrated and comprehensive aerospace industry suppliers. Magellan designs, engineers, and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets, and complementary specialty products. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout Canada, the United States and the United Kingdom.

Forward Looking Statements:

This press release contains information and statements of a forward-looking nature and is based on assumptions and uncertainties as well as on management’s reasonable evaluation of future events.
These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond the Corporation’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forwardlooking statements.

For further information contact:

John B. Dekker
Vice President Finance & Corporate Secretary
(905) 677-1889 ext. 224


Magellan Announces Extension of Credit Facility
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