Press Release

Magellan Aerospace Corporation Update on Second Quarter Results

By SpaceRef Editor
July 28, 2004
Filed under , ,

TORONTO, Magellan Aerospace Corporation (“Magellan”),
today announced that it is expecting a second quarter net loss of between
$0.03 and $0.05 per share, compared to reported net income of $0.05 per share
for the same period in the preceding fiscal year. Results for the quarter were
negatively impacted by unfavourable foreign exchange rate fluctuations during
the quarter and lower margin recognition on start-up programs in early stages
that are ramping up to full production.

“The aerospace market is currently displaying positive signs of a
recovery, the benefits of which will likely be felt by the Corporation
beginning in the latter part of 2004 through 2005 and beyond,” stated
Mr. Richard Neill, President and Chief Executive Officer. “We anticipate a
return to profitability in the second half of the current fiscal year.”

Full second quarter results for the period ended June 30, 2004 are
scheduled to be released August 6, 2004.

Magellan Aerospace Corporation is one of the worlds 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, with operating units
throughout Canada, the United States and the United Kingdom.

This press release contains certain forward-looking statements that
reflect the current views and/or expectations of Magellan with respect to its
performance, business and future events. Such statements are subject to a
number of risks, uncertainties and assumptions which may cause actual results
to be materially different from those expressed or implied. Magellan assumes
no future obligation to update these forward-looking statements.

For further information

John B. Dekker, Vice President Finance &
Corporate Secretary, Tel: (905) 677-1889 ext. 224, Fax: (905) 677-5658,

SpaceRef staff editor.