ARX Aerobox

RNS Number:7524I
AeroBox plc
11 September 2006


11 September 2006

                      AeroBox plc ("ARX" or the "Company")

                               Trading Statement

Following the Trading Statement announcement on 1st August 2006 the Directors of
ARX give the following update on the continuing developments within the
Company's main operating subsidiary, AeroBox Composite Structures ("ACS").

As a result of the production issues highlighted in the previous Trading
Statement at ACS, Laurus Master Fund ("LMF") suspended the $3m revolving debt
funding facility but agreed to provide sufficient funds for specific
applications within a structure agreed with the Board of ACS. This agreement
with LMF is for the specific purpose of converting the existing ULD stock and
work-in-progress into cash and for the exclusive benefit of LMF, the debenture
holder. This agreement does not currently include any funding for payment of
previous creditors and does not address cash requirements for the production of
future orders. The initial plan was to complete the orders in progress by mid
September. This has not been possible in the cash constrained position ACS was
placed although LMF has advanced further funds for short-term requirements and
discussions are in progress with LMF over future funding for the remaining
unfinished and future orders. This discussion is taking place in the knowledge
that one customer is actively considering the purchase of all materials for its
ULD order as an aid to cash flow.

As a consequence of the above and due to the extent of the monies owed to
creditors by ACS, its Board is currently seeking professional advice on the
options available to it.

The current LMF funding has constrained UniversalCore and OvoCorp to the extent
that they have been unable to trade and consequently a decision has been taken
to close these operations with immediate effect. Stephen Mendola and Rainer
Duchene tendered their resignations from the ARX board at 5pm on 8th September
2006.

The Board of ARX has accepted today the resignation of Jeremy Knight, the
recently appointed Group Finance Director.

ARX currently has very limited funds and is urgently reviewing alternative
sources of finance. However, given the level of uncertainty in its main
subsidiary ACS this is proving difficult.

The Board of ARX continues to review the current options available and will
update shareholders of further developments when it is able to do so.

                                    - ends -

Enquiries:

Ray Gibbs           Group Managing Director, AeroBox plc     +44 20 7929 5599
Trevor Phillips     Holborn PR                               +44 20 7929 5599
Jeremy Porter       Seymour Pierce                           +44 20 7107 8000



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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